Corporate Identity Alignment in an International Context the Case of Bang & Olufsen in China

Abstract

This master's thesis explores how foreign companies can adapt their corporate identity in an international context, using the case of Bang & Olufsen and their strategic presence in China. It explores how shifting geopolitical and political conditions, as well as evolving market landscapes, impact local consumer perceptions and social identity, highlighting the need for companies to navigate cultural and contextual alignment in their positioning. The thesis applies Social Identity Theory (SIT) by Tajfel and Turner (1979) as the primary framework to investigate the relationship between local consumer identity and corporate identity, and the interaction with corporate identity alignment. Corporate identity consists of organizational identity and brand identity, representing internal and external elements that can be used in identity alignment. The paper inductively utilizes primary data through semi-structured interviews with two Danish journalists, Danish managers, and a Bang & Olufsen representative based in China to determine core findings to align internal and external resources. These insights are analyzed through a template analysis approach, employing a hierarchical comparison that provides a structural framework for understanding how foreign companies can adapt their organizational and brand identities in an international context. The case of Bang & Olufsen illustrates how foreign brands can strategically align their corporate identity to enhance cultural relevance to gain brand trust.