Business to business:
The business to business areas of B & O are the B & O Enterprise, The B & O Automotive and the B & O ICEpower A/S. The businesses which are cooperating with B & O are luxury hotels, car manufacturing companies such as Audi and Aston Martin and well known electronic companies such as Samsung.
B & O sells modified products to them - the products are specifically manufactured for the purpose of the customer. For example, the sound systems for Audi cars, the design has to fit perfectly in the inside of the car. Hence Audi and B & O have a special cooperation, B & O designs special models for Audi.
B & O has also a contract with Samsung, they design the cell phones for Samsung. Furthermore The Cell phone will be branded with the name of B & O and Samsung. But most eye-catching will be the name of B & O.
Conclusion:
B & O focuses mainly on the business to business customers, they have big partnerships with well known companies like Audi, Aston Martin, Samsung and some luxury hotels. The consumers of these goods are mostly wealthy people, a consumer who buys an Aston Martin, expects not only a nice design from the outside, also a nice one from the inside. The consumers who buy an Aston Martin, they might be also customers of B & O. That shows that people who are likely to spend a lot of money on a new Aston martin, they are also willing to spend money for a high quality plasma TV from special brand like B &O. The consumers of B & O are people with high income and a high society status, so target group of B & O customers are people with an high income.
2. Factors in B & O which have have an influence on the companies business areas:
- The whole economy, because their main customers are the car industry and the hotel industry. If people don’t spend money on luxury goods like cars and traveling, B & O cant sell their sound systems or TVs to Audi or to hotels, because the business partners of B & O will limit their production or it would also cause in closing down some hotels.