The company has always had premium prices, but in certain categories the products do not always live up to the prestige of the brand: the experiences of 2010. for noise-canceling headphones, they were bulky, sounded average, and had poor battery life; and also sold a line of overpriced Bluetooth speakers with screens that nobody needed.
Then, after its physical storefronts didn’t have the billboard-like effect Bose wanted, the brand, just before Snyder joined, decided to make a drastic turn—a word that can so often be replaced by “panic”—to a strategy that which focuses on online sales and strengthening exhibits in existing storefronts such as Best Buy in the United States.
This seismic shift means every single Bose store in the US, Europe, Australia and Japan has closed, resulting in 119 store closures and hundreds of layoffs worldwide. So far, under Snyder, that shift toward online and in-store retail has worked, according to the company, but it could have gone the other way.
Brands like Nike that have moved away from brand-owned retail stores have seen sales decline, but the key difference is Bose’s decision to target retail partners. By strengthening displays at places like Best Buy and other stores, as well as targeting sales on Amazon and other online retailers in addition to its own website, Bose has been able to maintain a broad reach while not sustaining internal retail costs. According to Snyder, this toned-down approach has been effective in turning Bose’s fortunes around, especially when coupled with excellent new products.
Exclusive audio
Being a technology company that focuses entirely on audio products, Snyder says Bose’s secret sauce is research. Engineers are constantly looking for innovations in materials, acoustics, design, manufacturing and more. When asked about the latest innovations in hard drive technology, for example, she’s not shy about her astonishing market research.
“The interesting thing about Bose is that we’ve been an audio company for 60 years,” says Snyder. “We know we will be in competitive markets. We’ve always been in competitive markets, whether it’s headphones, at home or in the car. What makes us different is that we are all about audio. You can be sure that we experiment with everything. When we believe something is ready, we bring it forward. We are always looking for technology that can change the game.”
