Innovation as a strategy. Case: Bang & Olufsen
Hansen, Mathias Søe (2019)
Hansen, Mathias Søe
2019
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Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-2019082718008
https://urn.fi/URN:NBN:fi:amk-2019082718008
Tiivistelmä
The purpose of this thesis was to research how innovation can be used as a tool when creating a strategy. As globalization rose and international trade increased, so did the competition. Differentiation became a key factor for success as the customers got ac-cess to a larger range of products and services from a greater physical area. Innovation was found to be a very efficient way of differentiating and became an increasingly popular tool for success. Using innovation was however not risk free as applying in-novation meant applying new and untested ideas that came with a large risk. Those risks could be lowered with detailed understanding of the surrounding industry and customers needs. This knowledge was gained by analyzing but for that knowledge was needed on what to analyze and what tools that should have been used. Therefore, this study aimed to document theoretical tools that could be used in the application of inno-vation in a strategy.
The theoretical methodology that was used for this research was exploratory research as exploratory research aimed to learn about a topic without using direct comparison of data. That was chosen as the theoretical tools were applied to create an example of how innovation could be developed, in this case of Bang & Olufsen. The research was based on the qualitative method that allowed the research to be based and explain theo-retical tools and explore the topic in depth. The quantitative method was not applied to this research as this study aimed to explore and explain tools and phenomes that were relevant to innovation and using innovation in strategies.
The study found that innovation could be a powerful tool when it was successfully ap-plied. Innovation became increasingly popular as it could be used as a way to differen-tiate from the competition. According to findings the understanding of the competition and the customers could be used to analyze what could be done differently and utilize that to differentiate from the competition and meet the customer’s needs. There were risks involved when innovation was applied, but many of the risks could be mitigated during the development of the innovation.
In the case of Bang & Olufsen innovation was done by penetrating the market for headphones and Bluetooth-speakers. By implementing design, exclusivity and quality to the existing market Bang & Olufsen became the only brand to offer that solution to the customers. Bang & Olufsen’s launch of the B&O Play product series they success-fully managed to enter a new market area and expand their business while utilizing their core competences to set them apart from the competition.
The theoretical methodology that was used for this research was exploratory research as exploratory research aimed to learn about a topic without using direct comparison of data. That was chosen as the theoretical tools were applied to create an example of how innovation could be developed, in this case of Bang & Olufsen. The research was based on the qualitative method that allowed the research to be based and explain theo-retical tools and explore the topic in depth. The quantitative method was not applied to this research as this study aimed to explore and explain tools and phenomes that were relevant to innovation and using innovation in strategies.
The study found that innovation could be a powerful tool when it was successfully ap-plied. Innovation became increasingly popular as it could be used as a way to differen-tiate from the competition. According to findings the understanding of the competition and the customers could be used to analyze what could be done differently and utilize that to differentiate from the competition and meet the customer’s needs. There were risks involved when innovation was applied, but many of the risks could be mitigated during the development of the innovation.
In the case of Bang & Olufsen innovation was done by penetrating the market for headphones and Bluetooth-speakers. By implementing design, exclusivity and quality to the existing market Bang & Olufsen became the only brand to offer that solution to the customers. Bang & Olufsen’s launch of the B&O Play product series they success-fully managed to enter a new market area and expand their business while utilizing their core competences to set them apart from the competition.