Bose is undergoing what its chief executive describes as a second chapter of transformation, moving from a pure consumer products company into a multi-brand and licensing operation. Lila Snyder, who leads the company, has significantly restructured the business over recent years while retaining its long-standing focus on research and development.
Founded 60 years ago selling speakers to consumers, Bose has built a reputation as a leader in both car audio and noise-cancelling headphones. That heritage remains, with the company continuing to sell soundbars and headphones directly to customers across its consumer and automotive divisions.
A multi-brand strategy
For six decades, the business operated under a single brand. It has since become a multi-brand company through a series of acquisitions. Bose purchased McIntosh Labs, a 75-year-old audiophile brand, alongside high-end audio maker Sonus faber. At the same time, the company sold off its Bose Professional division, sharpening its focus on new areas of growth.
The shift reflects a broader change in how the company approaches expansion. Rather than relying solely on its own products, Bose has moved into new markets by working with other manufacturers, building out a portfolio that spans several price points and customer segments.
Licensing and the move into B2B
Perhaps the most significant change is that Bose has begun licensing its core audio technology to other companies. This turns the firm into a business-to-business operation in addition to its consumer product lines. Bose technology now appears in products made by other brands, including Skullcandy headphones and Epson projectors.
Becoming a software company as well as a product company brings a new set of structural and operational challenges. The transition requires different capabilities and a reorganisation of how the business is run, as Bose adapts to supplying technology to a wide range of external partners.
The strategy also comes against a backdrop of change in the headphones market. Phone makers such as Apple and Samsung have developed their own products, including AirPods and Galaxy Buds, that are closely integrated with their devices. There is also the prospect of AI wearables, which may resemble headphones and depend on extensive audio processing to enable voice input, potentially reshaping the category further.
By licensing its technology, Bose positions itself to supply audio capabilities to companies developing these new products, whether or not those devices disrupt the traditional headphones business. The company continues to operate its consumer and automotive divisions while expanding its role as a technology provider to third parties, with its expertise in noise cancellation and audio processing central to that offering.
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