Case Study: Bose
The Bose Corporation was found by Amar Bose in 1964. It has been known for its high-end speakers and headphones. It will soon release an automotive suspension system that unlike anything else on the market. Bose is a brand with very high level of equity and is the most trusted brand of 22 best-known consumer technology brands. It has been very successful financially as well.
The company has unique business philosophies that have lead to truly groundbreaking innovations and high levels of consumer trust. For example, the company’s founder Amar Bose has kept it private in order to control the degree to which the company invests in and conducts research which he considers the lifeblood of the company. He plows all of the privately held company’s profits back into research. Also, time and time again, he has ignored existing technologies and started entirely from scratch. This commitment to research and development allows Bose to outdo the competition by differentiating product lines with features and attributes that other companies do not have, while most companies today focus heavily on building revenue, profits and stock price.
When identifying competitors’ strategies, Bose may particularly look at those competitors who are also in the audio equipment industry and following the same or a similar strategy, called a strategic group. These competitors in a strategic group are Bose’s key competitors. Bose can succeed only if it develops strategic advantages over these competitors. Facing these key competitors, Bose needs to know all dimensions of their strategies such as how each competitor delivers value to its customers, each competitor’s product quality, features, and mix; customer services; pricing policy; distribution coverage; sales force strategy; and advertising and sales promotion programs. Bose also needs to know the details of each competitor’s manufacturing, purchasing, financial and R&D as well. Based on Bose’s philosophy, it may...
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