The company which I have chosen to investigate is the top end entertainment electronic producer, Bang & Olufsen.

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The company which I have chosen to investigate is the top end entertainment electronic producer, Bang & Olufsen.  B&O is a luxury lifestyle brand, as it’s their image, design and quality are not rational.  Bang & Olufsen’s image means that their target group are prepared to pay ‘luxury’ prices.  B&O is the ‘Porsche’ of the entertainment electronics producers.

The only other electronic producer which is really anywhere close to B&O’s standard is their main rival Loewe.  Loewe is compared with BMW rather than Porsche, as they market middle to higher-end entertainment electronic products and are still far from attaining B&O’s luxury lifestyle image.  However, Loewe has managed to create a strong upmarket brand.  

Both company’s were founded in the 1920s, and both their main philosophy is focus on core business.        

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Bang & Olufsen’s sales are increasing as they are gradually becoming widely recognised.  This is shown in the table below:

Year end        Net Sales      Pre-tax Profit                    Yield         

(31 May)          (Euros m)           (Euros m)                          (%)

2000                512.1                30.11                        1.1

2001                 558.2                30.38                        2.0

2002                 609.5                39.52                        2.4                

2003E                 666.8                48.93                        2.9

Source: Company data and Deutsche Bank estimates

B&O is active in over 40 countries, like Loewe (over 45 countries). With nine countries accounting for 80% of ...

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