Bose reinvented itself just in time; now comes the tricky part.
Despite the audio brand being close to reaching its retirement, CEO Lila Snyder claims that the innovators of this private company still have many surprises in store.
The company has always maintained premium prices, but in certain categories, its products have not lived up to its prestige. For example, attempts in the 2010s to offer noise-canceling headphones resulted in bulky devices with average sound quality and poor battery life. Additionally, overly expensive Bluetooth speakers were marketed, featuring characteristics that few needed.
Before Snyder’s arrival, the brand decided to make a drastic change in its strategy, a move some might describe as an adrenaline-fueled reaction, by focusing on online sales and generating more attractive displays in brick-and-mortar stores, such as Best Buy in the United States. This radical shift led to the closure of all Bose stores in the U.S., Europe, Australia, and Japan, totaling 119 closures and hundreds of layoffs worldwide. So far, under Snyder's leadership, the focus on online commerce and retail has proven effective, avoiding the opposite path taken by others like Nike, which experienced declines in sales after moving away from their brand stores.
Bose's strategy to remain competitive has been to partner with retailers instead of bearing the expenses of in-house stores. By strengthening displays in places like Best Buy, as well as focusing on sales through Amazon and other online retailers in addition to its own website, Bose has managed to maintain a wide reach without the costs associated with owned stores. According to Snyder, this streamlined approach has been crucial in improving Bose’s situation, especially when combined with innovative products.
In the realm of technology, Snyder highlights that research is the heart of Bose. Engineers are continuously seeking innovations in materials, acoustics, design, and production. Commenting on recent innovations in solid-state driver technology, he shares that extensive market research is fundamental to the process. "The interesting thing about Bose is that we have been an audio company for 60 years," Snyder states. "We have always been in competitive markets, whether it’s headphones, home audio, or automotive. What sets us apart is that everything revolves around audio. We are always experimenting, and when we believe something is ready, we launch it. We look for technology that can be a game-changer."
This dedication is especially evident in the development of noise cancellation, an area in which Bose was a pioneer, initially focusing on aviation pilots. By researching the needs of these professionals to operate safely and comfortably in the cockpit, Bose has created noise-cancellation algorithms that are considered the best on the market. The latest models of the Bose Quietcomfort headphones and earbuds reflect this advanced technology.
Snyder also mentions that the brand collaborates with professionals, or semi-professionals in the case of its equipment for musicians in small venues, not only to improve products but also to attract an audience interested in high-quality audio. "They are professional musicians. They have a great ear. They know what excellent sound sounds like. These products create a kind of halo around them."