Bose Revamped Itself Precisely When Needed. Now Arrives the Challenging Section

Although the audio brand may be approaching retirement age, CEO Lila Snyder asserts that the creators of this private company have many more surprises to offer.

BOSE MAY HAVE reached its 60th anniversary, yet the audio brand appears to be confidently entering its graduate school phase. After the late founder Amar Bose transferred majority ownership to MIT in 2011—a lesser-known detail—it became the most valuable audio brand in higher education and expanded its mission. The era of Press speakers and limited headphone choices to complement your chic Bose Wave CD radio is over.

Over the last four years under CEO Lila Snyder—a former McKinsey consultant for 15 years and an MIT graduate with a master’s in mechanical engineering—Bose has seemingly corrected a course that seemed to be heading toward the shore.

Snyder and her team took control after Bose closed its retail stores during a global pandemic. She also aided in transforming a shaky beginning in the wireless earbuds and Bluetooth speaker industry into some of the most stylish, best-sounding products available. In a landscape where management consultants and tech leaders are recognized for dismantling companies and increasing costs, Snyder and a streamlined Bose have preserved the brand’s noise-canceling excellence against strong competition from Apple, Sony, and various others.

What stands out to me the most about the Bose of 2024 is its ability to avoid conforming to the trends that public companies follow: It has been a pioneer for sixty years and remains one in all areas, from product creation to sales approach. It has discreetly been unraveling the techniques behind vehicle noise cancellation and beam-forming eyewear, while also creating personal line array systems for musicians performing in small venues. A decade ago, I used to inform people that aside from its remarkable noise cancellation, Bose provided minimal benefits for the average consumer. Currently? I would suggest that the company is perilously approaching the point of taking Sonos’ market share.

60 Years of Sound

Only a handful of brands have advanced personal audio technology significantly in the last sixty years. From vinyl turntables to CDs, and now the age of streaming and portable audio, Bose has produced competitive products aimed at higher-end consumers, despite having encountered some missteps along the journey—such as a few notably large and uncomfortable early wireless earbuds, for instance. Snyder mentions that joining it can feel like entering a surreal culture.

Snyder, the first female CEO of Bose, was a young inventor who saved money to buy her first Bose radio. “I was raised viewing Bose as both an aspirational and iconic brand.” “Isn’t it amusing to become part of a company with stories from your past, right?”

Nevertheless, even if Snyder no longer needs to save for access to the newest equipment, it seems that both newcomers and veterans receive the same repetitive question from those in their personal circles. “Any Bose worker will inform you that the most frequent inquiry they receive is, ‘Do you receive a discount?’” Snyder makes jokes.

The company has consistently set high prices, but in some areas, the products haven’t lived up to the brand’s reputation: attempts in the 2010s at noise-canceling earbuds were cumbersome, offered average sound quality, and had unsatisfactory battery life; it also marketed a range of overpriced Bluetooth speakers with unnecessary screens.

Subsequently, when its physical locations failed to deliver the billboard-like impact Bose desired, the brand, just before Snyder’s arrival, opted for a significant shift—a term that could frequently be substituted with “panic”—toward a plan centered on online sales and enhancing displays in current stores like Best Buy in the U.S.

This significant change led to the closure of every Bose store in the US, Europe, Australia, and Japan, totaling 119 store shutdowns and resulting in hundreds of global layoffs. Up to this point, under Snyder’s leadership, the shift to online and physical retail has reportedly been successful for the company—but it might have turned out differently. Brands such as Nike that have shifted away from their own retail outlets have experienced declines in sales, but the crucial distinction is Bose’s choice to embrace retail partnerships. By enhancing displays in locations like Best Buy and various stores, along with strengthening sales on Amazon and additional online retailers aside from its own site, Bose has successfully sustained a wide reach while avoiding in-house retail expenses. As per Snyder, this streamlined strategy has successfully improved Bose’s financial situation, particularly when combined with outstanding new products.

Audio Only

As a tech company exclusively dedicated to audio products, Snyder claims that the key element at Bose is research. Engineers are always seeking innovation in materials, acoustics, design, manufacturing, and beyond. When inquired about the latest advancements in solid-state driver technology, for instance, she is not hesitant to discuss its extensive market research.

“What’s fascinating about Bose is that we have been an audio business for 60 years,” states Snyder. “We understand that we will be in competitive markets.” We’ve consistently operated in competitive markets, whether it’s in headphones, at home, or in vehicles. What sets us apart is our focus on audio. You can be confident that we try out everything. When we think something is prepared, we present it. “We’re continuously seeking technology that can transform the industry.”

This is especially clear regarding noise canceling, which the brand first developed for aviators—a sector Snyder claims Bose takes pride in dominating—rather than passengers in the main cabin of the aircraft.

Utilizing the Advantages

By examining the requirements of pilots for safe and comfortable cockpit operation, and consistently soliciting their feedback for enhancements and suggestions, Bose successfully created and refined what are considered the best noise-canceling algorithms Press has ever evaluated. That is understandable, considering that the newest Bose Quietcomfort over-ear headphones and earbuds provide authentic professional-grade aerospace technology.

Snyder states that the brand employs professionals, or semi-professionals for its PA equipment aimed at small-venue musicians, to enhance its products and to attract customers interested in premium audio. “They are a skilled musician.” They possess an excellent ear. They understand what excellent sound is like. “Those items generate a kind of aura.”

Nonetheless, an important marketing strategy Bose employed for a long period was NFL games, where it acted as the sideline sponsor for headsets for eight years, concluding the collaboration early this decade. The collaboration has now been acquired by Sony.

Anticipating Ahead

Other issues Bose encounters are similar to those faced by leading manufacturers across all sectors: It needs to keep innovating to retain its position at the forefront of noise canceling; and it must keep producing additional items, like speakers and soundbars, that provide the same features. Current projects that thrill Synder involve the company’s ongoing efforts in car audio, seeking to minimize the road noise in vehicles that has become increasingly noticeable in the quieter electric vehicle age.

“We have been, and we will remain, present wherever music matters to our clients,” Synder states, subtly suggesting upcoming technology. “We’re thrilled about what we are about to introduce to the market.”

In the weeks following our discussion, Bose revealed a new budget-friendly pair of noise-canceling earbuds that have received enthusiastic initial feedback (our review will arrive soon), along with a new soundbar model that includes an AI-driven dialog mode.

Bose further revealed that you can connect its Ultra Open earbuds to the soundbar to function as simulated rear speakers in surround sound—exactly the kind of genre-blurring listening she mentioned. We anticipate greater innovation and are eager to observe the results when Bose merges its beam-forming audio technology from its Frame sunglasses with the noise-canceling and personal audio features it has been trialing for vehicles. As has been the case for a large part of its sixty years, I believe the finest of Bose is still ahead.