Abstract

Grundig AG was a major player in the German consumer electronics industry. In Germany, the Grundig brand enjoyed an iconic status. Even in other parts of Europe, the Grundig brand had a high brand recall. The company started with manufacturing and marketing radios and graduated to cover almost the entire range of consumer electronics including TVs, hi-fi and audio/video equipment. The case traces the origins of Grundig, its failed association with Philips and the financial mess it was in. The case throws light on the factors that propelled the company into bankruptcy. The case also profiles Alba and Beko, Grundi's new owners. Grundig's prospects under its new owners are discussed.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Events leading to the bankruptcy of Grundig
• Factors that led to the bankruptcy of Grundig
• Future prospects of Grundig under its new owners.

Keywords

Alba Plc, Beko Electronics SA, Grundig AG, Grundig Multimedia BV, Royal Philips Electronics NV, European consumer electronics industry, Betamax, Sony Corp, Consumer Electronics, Commission of the European Communities, European Commission, Insolvency Administrator, Joint Acquisition, Bankruptcy, Home Intermedia Systems