Introduction of Group Project Bose Corporation Founded in 1964 by Dr. Amar Bose, Bose Corporation is a company pioneering in perfecting the quality of sound heard through speakers. Through the years, Bose has become an industry leader by developing innovative products such as the Bookshelf Speaker, Wave Music System, and Bose Suspension System. In 2008, Dr. Amar Bose was inducted into the National Inventors Hall of Fame for “significantly influenced influencing the quality of how we live. ” Bose’s product line ranges from products for pilots, electroforce test instruments, homebuilding/remodeling solutions.
Its main products are in professional sound solutions. Bose is a private company headquartered in Framingham, MA, and is continuously discovering breakthrough products to improve the consumers’ quality of life all over the world. Industry, Offerings, & Target Market The Bose Ride System is a one of a kind product. However, mMost people would probably try to compare it to Air Ride, a suspension system that offers a smoother ride for truckers.
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The NAICS code that would fit particular to the Bose Ride System is 336630: Motor Vehicle Seating and Interior Trim Manufacturing.
Because the Bose Ride System is a seat, it is quite obvious that the NAICS code would be motor vehicle seating. The Automobile Seating Industry segment for Air Ride seats comprises of about 8 key companies: Bostrom Seating, Comfort Ride USA, Knoedler Manufacturers, National Seating, Recaro, Sears Seating, Seats, Inc. , and Wise Seating. Total industry revenue in 2009 totaled $15. 039 billion. Bose Corporation is generally known for its impeccable speaker systems and surround sound units, however, it is currently trying to penetrate different markets and the auto market is one of them.
Their Automotive Systems Division is constantly nnovating and researching to improve upon their current suspension system for vehicles. Because consumer comfort and quality of life is are what Bose tries to improve, they have minimized this suspension unit to introduce the Bose Ride System. It is a seat suspension unit designed to reduce the soreness and fatigue experienced by long-haul drivers. The Bose Ride System will be available beginning March, 2010. Currently it will be available only through a special sales team.
Due to the newness of the product, Bose will only allow the Ride System to be sold as an after- market product. The seat is designed to help lessen the feel of bumps and vibrations in the road and to relieve fatigue that comes on when after driving for long periods of time. For the long term, this product will help those who have occupations in driving Ride system. Bose has specifically targeted the trucking fleet market where they can sell the seat to trucking companies such as freighters and FedEx, etc, and thus the end user would be the consumer.
In the future, the seat may be available for small cars, consumers, and maybe even the airline industry; however, for now, Bose is limiting the availability to truck fleets. Mission and Long-Term Goals Bose Corporation’s mission is “Committed to encouraging innovation, creating value for customers, and having passion for what we do. ” Over the years, the accolades that Bose has attained, such as Inventor of the Year (1987) and Product of the Year (1998), further exemplify the companys mission.
Bose is privately held with a goal of reinvesting profits into the corporation for R&D, so there is not necessarily a corporate goal. Based on this, it is safe to assume that the company’s long term goals are in line with researching and developing products that will facilitate the lifestyles f consumers. The Bose Ride System will help meet Bose’s mission of creating value for customers through the lessening of back pain and fatigue of the end user. Through interviews with professional drivers, Bose found that many over-the-road drivers accept feeling sore and tired as part of the Job.
Many drivers who participated in a trial of the Bose Ride system reported that they felt more comfortable, less sore and less fatigued”all factors that can improve Job performance and quality of life. In addition, the value this will add to businesses is even greater. Because drivers will e feeling less fatigue, and thus be in better shape (less back pain, etc), drivers will be more efficient and willwould be willing to drive for longer periods. In addition, employee turnover may not be as high due to the fact that the Bose Ride System can improve a drivers’ quality of life.
Bose is continuously researching ways to improve and better the lives of consumers, and the Bose Ride System is a great way for the company to contribute to its Mission. Industry Analysis Product Life Cycle The motor vehicle seating manufacturing industry launched simultaneously with the automobile industry of the early 20th century. The industries expanded together over the following 100 years, but the seating industry began to become specialized towards the end of the century delivering customized solutions for particular needs.
Traditional seats used in long haul truck driving began to lose favor within the industry in the 1970s when doctors found that seasoned truck operators were exposed to whole-body vibrations leading to back and organ damage over time. At the same time, suspension and compression technology enabled seat manufacturers to attempt to counteract some of the vibrations by adding technology found in an ssociated risk was mitigated, but the passive suspension system only responded to some of the whole-body vibrations and did not have sufficient useful life.
The entire industry is quite mature in the United States, but in growth mode in emerging markets such as India and China, where citizens are beginning to buy their first automobiles and companies require trucks to meet the supply chain needs of their growing organizations. The active suspension seat industry is in the early adopters phase with only a few manufacturers introducing products and transportation companies contemplating the costs and benefits of implementing hem in their fleets. The Bose Ride system is due to be launched in March of 2010.
Currently reaching the end of its development period, the introduction phase is now looming over it. After its launch in March 2010 a lot of growth and an idea as to its potential will be seen. The introductory phase is a time of huge growth, a potential for a lot of technical change in product design and most likely a time for limited or negative profitability. It is also a time when others in the market begin to gauge the product and future competitors start out on making their own versions.
As a result of this, by he time the product reaches its growth stage, there will be a lot more competitors on the stage. A lot more aggressive marketing will be seen in this ‘growth’ stage and also a potential for branching from the scene of heavy duty truck fleets to other systems, like off-road vehicles, construction equipment, airplanes, boats, etc. Also, at this stage, Bose will probably tap into their immense strength with regards to sound technology and incorporate speakers and other sound systems in their seats. More and more competitors will also probably show up on the scene with comparable products.
Profitability at this stage though, is projected to be high. As the product gets into the more mature phase, improvised, probable lighter versions of the seat that are adaptable to individual consumers also will probably make the rounds. Also, newer versions will take much shorter periods of time to be introduced and prove to be more profitable. Bose has already invested years of research, all of which will payback as they implement newer versions. Profitability at this stage will also be at a high. Also, currently the product is only due for a US launch.
As the product establishes itself locally, international markets will provide huge potential. Concentration on features and quality improvement become the prime focus after the initial launch. Maintaining effective distribution channels and good communication channels and customer care support also will become top priorities. Overall, because the product is in the introductory phase, Bose will have to put in a lot of effort to market and distribute the product. In addition, because the Ride System is unique to the seating industry, it is expected to be very profitable for the company.
Competitor Analysis have already penetrated the market and have become leaders in innovative seating designs that not only help the driver ergonomically, but also are stylish accessories for the vehicle. The Bose Ride System’s major competitors include Recaro Group, Bostrom Seating, Sears Seating, and Seats Inc. Recaro Group The Keiper Recaro Group is a German based company that specializes in mobile seating. They have three companies under their umbrella: Keiper, Recaro, and Recaro Aircraft Seating. Each company specializes in seating that will enhance the end user’s comfort.
Their product line ranges from economy and business class seating for aircrafts, all the way to ergonomic seats for the end consumer. Keiper Recaro Group’s sales figures for 2008 top ‚¬1. 8 billion. Already a global company, Keiper plans to further expand the company to Dubai and Shanghai in the next few years, in order to have a greater reach. The Keiper Recaro Group has diversified seating options through multiple industries: regular automotive, commercial vehicles, aircrafts, and public seating. Since Bose has only targeted the commercial vehicles, this analysis will focus on Just he commercial vehicle offerings of Recaro North America.
Recaro North America’s main product line includes 4 groups: Motorsports, Tuning, Ergonomics, and Child Safety. Each sub-category has attuned its products to comfort and well-being of the end user. The Ergonomics seats are the ones that are mostly targeted towards commercial vehicles such as busses and trucks. These seats focus on reducing the stress of the road, and help to seat the driver in an ergonomically correct position, therefore reducing any strain felt on legs and back due to long periods of seating.
Recaro Group has a long list of customers which include BMW, Ford, Chevy, McLaren, Toyota, Mercedes, etc. Their reach for customers is global, and this will be a big threat to Bose. Their Marketing Strategy and website are great tools for customers who are interested in this company’s products. Recaro is a recognized brand in many industries such as Motor Racing, Car Seating, etc. With such great brand awareness, it is easy for Recaro to reach customers, and to establish itself as a good company. Recaro’s main product is mobile seating and they are able to focus all f their efforts into one main product.
Due to the seating industrys maturity, Recaro will have to form alliances with other companies to enhance their product offerings. Bostrom Seating Bostrom Seating is a leading supplier of air suspension and static seating systems for the heavy-truck, agricultural, construction, bus, and specialty vehicle market. In 2005, Bostrom Seating became a subsidiary of Accuride Corporation who is one of the largest and most diversified manufacturers and suppliers of commercial vehicle components in North America. Bostrom Seating is focused on Quality Assurance and