The Grundig Story

The Grundig Story
Case Code: BSTR200
Case Length: 16 Pages
Period: 1980-2005
Pub Date: 2006
Teaching Note: Not Available
Price: Rs.300
Organization: Grundig AG
Industry: Consumer Electronics
Countries: Germany, United Kingdom
Themes: Failure of Strategy, Bankruptcy
The Grundig Story
Abstract Case Intro 1 Case Intro 2 Excerpts


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.


The case is structured to achieve the following teaching objectives

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



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

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