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Bose Corporation Competing by Being Truly Different

Based on the business philosophies of Amar Bose, how do you think the Bose Corporation goes about analyzing its competition?

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The impetus for Bose Corporation came, not surprisingly, from a sub-par stereo that had been purchased by founder Amar Bose in 1956. The poor performance of the stereo and tough competition nagged at Bose as he lay in bed, when suddenly an idea to design a new speaker occurred to him. That idea was the seed for what eventually became Bose’s first speaker patent, a research initiative that has helped the company contain the competition. The initial years of the company were a bit shaky as the company was kept afloat mostly by its government contract work. The company was eventually able to take Dr. Bose’s innovations in psychoacoustics (the study of the way the body perceives sound) and use them to develop cutting-edge auto and home sound systems. Today it brings in an estimated $1.7 billion annually, making it one of the largest stereo manufacturers in the world.

Which of the text’s three approaches to marketing strategy best describes Bose’s approach?

Bose has continuously been ramping up its retail operations since the late 1990s. In 1997, the company launched high-end showcase stores and a year later introduced audio systems for cars marketed to the middle class. The retailing ball really started rolling when company connected to the Internet in 1999 and simultaneously launched a new and improved version of the Wave radio, featuring a CD player. With the introduction of affordable DVD systems and the heavily promoted Sound Dock iPod speaker, the company is targeting a younger demographic.

Using the Michael Porter and Treacy and Wiersema frameworks presented in the text, which basic competitive marketing strategies does Bose pursue?

Bose’s entry into the high-fidelity industry was inconspicuous. At the time of its incorporation in early 1971, the company counted only a few employees. Most of the industry regarded its product as an oddity with limited appeal. Japanese firms, which constituted the dominant force in the audio industry worldwide, had over-looked the potential of extremely high-power amplifiers, which did not seem to fit their export-oriented approach. Efficient production technology and effective advertising, sales, and distribution enabled them to drive their American competitors out of the market for mainstream products like stereo tuner-receivers. But the Japanese manufacturers did not regard the stereo separates market as big enough to deserve much attention.

Firms such as Ken wood, Sansui, and Pioneer maintained separate stereo component lines, but mostly for the sake of product mix and the lustre that high-end components added to their image. As a result, competitive response to Bose’s products was slow in taking shape. Only in 1975, after the company had already secured the largest market share of any entrant in the market for separate amplifiers-15 to 17 percent-did several firms, both American and foreign, introduce super-power amplifiers of their own. For the most part, Bose’s U.S. competition came from small and relatively new companies.

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What is Bose’s competitive position in its industry? Do its marketing strategies match this position?

Staving off competitors, Bose has grown its revenue by $500 million since 2001. Sales for 2004 totaled $1.7 billion, a $100 million increase over the year before. In 2004, Bose unveiled Project Sound, a research effort in which the company and its founder have been enthusiastically engaged for more than 24 years. Project Sound is a unique (and expensive, at an estimated cost of $20,000) Bose wave expansion system that enables a system be synched while its beneficiaries feeling ‘rugged’ sound. The system is not available on vehicles currently being sold, but according to an article in the January 2005 issue of Chief Executive, Bose is working to get a car manufacturer to adopt it.

In your opinion, is Bose a customer-centric company?

Best music system Care is a service established by Bose. It seeks to provide quality repairs and service to such Bose sound systems which have exhausted the usual 4 free after sales services provided by Bose Company. Amar has developed a wide network of relations with Bose system owners in the city and has a reputation of a highly experienced sound engineer who has a special expertise in increasing the quality of music by alternating and enhancing wave lengths technology. Amar has a very customer centric approach to business. This is reflected in all aspects of his recently setup proprietary concern. Right from the name the entire Bose station is oriented towards customer satisfaction through highest quality Bose.

The Bose station has computerized sections (Bose bays), a fault detection facility, and facilities of mechanized system cleaning, polishing, painting and vacuum cleaning. The station has specially marked area for such customers who are looking for quick Bose of minor nature like tune ups. While separate areas are reserved for fault detection and major repairs. The station maintains detailed computerized records of all jobs done on any product. This facility is used in the products proper maintenance and future repairs.

What will happen when Amar Bose leaves the company?

If the Bose corp. happens to leave the company, the new director must be able to ensure Acoustic mass speakers combined life-sized sound with miniature speakers (“small enough to fit in the palm of your hand”) gain a strong standing in the market. He should be able to help Bose continue providing home music and theater equipment in the form of its Lifestyle line of products, which includes a CD players, DVD players, headphones and the recently launched Sound Dock, a speaker engineered especially for Apple’s iPod digital music player.

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StudyCorgi. (2021, February 15). Bose Corporation Competing by Being Truly Different.

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