Bose is a private company established by Amar Bose. It is an American manufacturing company that mainly sells audio devices. It was established in 1964 and is based in Framingham, Massachusetts, the U.S.
The industry type is consumer electronics. Bose is famous for its home audio systems, automobile audio systems, professional audio products, and noise-canceling headphones. The current president and CEO are Philip W. Hess. The Massachusetts Institute of Technology majorly owns the shares in the Bose corporation.
Bose History
Angel investors funded the company in 1964, established in Massachusetts. The company was founded by Amar Bose and Professor Y.W. Lee, where Amar was the thesis advisor.
The aim of the company was to design a speaker system that used many speakers so that sound is reflected by the surroundings and can get the concert feel at an individual level.
The first product launched and sold was Bose 2201 in the year 1966. The features included 22 speakers, many of which were arranged so that they were facing away from the user.
It was designed to be kept in the corner so that sound is reflected off the surroundings and would give an experience of a concert. It was a failure and wasn’t in use after 3-4 years.
- Bose Corporation (/boʊz/) Is an American manufacturing Company that Predominantly Sells Audio Equipment.
Post first failure
After the failure of the first product, 2201, Amar inferred that the measurement techniques of sound distortion and frequency response of an audio system were insufficient to replicate the natural sound and give a concert-like experience. According to Amar, the user’s perception is important for measuring audio quality.
Then, in the year 1968, the company launched another product Bose 901, which was a stereo speaker system that had in total of nine drivers. Eight faced away from the user or towards the surroundings, and the ninth faced the user.
The main aim of the product was to show the power of reflected sound over the sound that the user gets directly from other types of speakers and thus create an environment of natural sound at home. It was a commercial success as the speaker was very new and unorthodox.
The company developed a lot in the 1970s. The product Bose 901 remained in the market for a long time until around 2016, and it was the centerpiece of the line-up for many years.
In 1991, the company ventured through and disproved an experiment claiming that cold fusion could be used for energy creation. The retail shop that Bose opened for the first time was in 1993 in Kittery, Maine.
Bose Brand Value
According to the statistics, in 2019, it employed more than 9,000 people. The operating income is around 3,800,000,000 US dollars. The total revenue that the corporation got in the year 2019 was the US $ 4 billion.
In 2020, it announced that it would close all the retail shops in countries like Japan, Australia, Europe, and North America, but the other 130 shops would still be functional in countries like UAE, South Korea, India, etc.
It has been ranked in top companies in so many Ranking awards like US RepTrak 100, Best product brands Germany, The Authentic 100 index, etc.
It has earned the Forbes list of America’s largest private companies in 2019 and America’s Best employers in 2017. It has been highly valued for its products in the market among users. In 2006, it was ranked as the most trusted consumer brand among the 23 distinguished technology companies.
It was ahead of companies like Microsoft, Apple, etc. Bose has always focused on the quality of the product and generating employment. It has been ranked the best in-car audio system in the US.
It has been one of the most powerful brands. It is known for its products for travelers, the military, NASA, aviation, car companies, etc. It is best known for its noise-canceling technological tools.
Bose Brand Strategies
Wide range of products
Bose has the main market of audio systems and has been proven to be the best for car audio systems so many times. It has also ventured into the sector of seats for truckers. The company is very strict about its patents, brands, etc.
Car audio systems have been adjusted according to each car type making it the best. The most appreciable feature of all types is the near-to-perfect use of noise-cancellation techniques. Due to this, even NASA relies on Bose for noise-canceling headphones for aviation and other things.
The products are mostly Bluetooth enabled and have in-built Wifi in them. The products are available in a wide range of vibrant colors. The country’s military has been utilizing the products efficiently and effectively. They are also known for setting up audio systems for concerts, stage performances, celebrations, etc.
High-quality products at the cost of hefty pricing
Though the pricing is high, the product quality has been ranked the most trusted and the best among so many companies. It has provided the best quality for space ventures too. The products come with a backup of a year’s warranty.
Customers are satisfied with the replacement and upgrade facility. The price range doesn’t decline over time, as well as the product quality.
It has a premium pricing range in the market. At times the price difference with another brand increases due to Bose’s brand image and quality.
Location of company and shops
Because of its company’s location in the US, Bose can easily access developed countries like Japan and South Korea. It has established various types of stores worldwide like Bose Factory outlets, Bose shops, Audio stores, airport kiosks, showcase stores, etc.
It tries to bring the product directly to the consumers instead of going through another intermediation. It has aimed at advertising new products at the airport kiosk and other stores. They have partnered with Almo Professional Audio/Visual to give premium services to users. It has appreciated the direct store purchase more than online buying or even if bought online; the user should get all the paper guaranteeing its authentication.
Promotion
Bose aims at reaching the user directly. The marketing is done with the premium marketing reputation and previously owned respect in the market. It has a low-key strategy compared to its rivals in the market.
They prefer video streaming to show the visual experience of the products through the emotions portrayed. It is serene to watch the product through the videos. They market the product via Amazon also. They spend minimal on advertisements even after all these promotions.
In the beginning, they preferred reaching doors directly to engage the users and increase their trust in the products. So many celebrities have endorsed the products launched by Bose, like Nicki Minaj, Lil Wayne, etc. They showcase their product on the online digital front also.
Research and Development
Amar Bose’s sole aim was to research and develop a product that could mimic the natural sound a home-like environment. The company’s aim is still based on the foundations laid by Amar Bose.
Amar Bose, the firm’s chairman, gave away the majority of non-voting shares to his previous employer, Massachusetts Institute of Technology. Thus, MIT receives annually for the advancement of the research and education mission MIT. The shares are non-voting, so MIT can’t sell them and doesn’t have a say in business affairs.
Later in the year 2013, Amar Bose died, and Bob Marescabecame the CEO of the Bose Corporation. The lack of specification and a low-key strategy for advertising, but in the end, coming out with a product of value beyond its pricing shows how much the company invests in the research and development part.
They have paid themselves for all their research. They worked on the suspension system, also.
Future Strategies
Bose thinks about the solutions and how to reach it in the best possible way. They invite creators, and inventors to provide new ideas that will help the users to have the best experience even if they are in a home-like environment.
Bose is also involved in developing custom-built models on a large scale, which they want to take further. They are also aiming at the millennial generation since the demand for luxury items has peaked and will continue for decades. Millennials have been and will be the developing consumers.
Independent decision-making is the key that all Millennials hold, which they know and want to use on their own to open the door, companies like Bose sits there, and instead of its constant involvement, it involves themselves in the listening of how the Millennial wants to open the door using the key and explore the technology, now everything that Bose does lies on the other side of the door. They want to provide sound quality that gets richer and deeper with each product.
- Bose Products Are Highly Overpriced. the Main Reason Behind the Expensive Pricing Is The Sound Quality They Offer and The Durability of Their Products.
Conclusion
With research and development at its core, the company has thrived in the market successfully for so many years. The product value has always met the expectations of the users. Bose being a big company, always has aimed at the satisfaction of users rather than basing its product just earning.
Innovation and teamwork have always been the core ideologies that Bose portrays. Noise cancellation always has been the best put up technology by Bose. All the research has been self-funded. They are best known for their business ethics also.
Thus, Bose truly reflects the idea of sustainability.
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