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Question:
1) How do Boses history, strategy, and sourcing policies affect supplier relations? Is Bose a
good buyer?
2) At what level is the buying and selling done in this process?
3) Should Bose participate in the JIT II program? Should G&F? What are the potential
benefits and risks for both companies?
1) How do Boses history, strategy, and sourcing policies affect supplier relations? Is Bose a
good buyer?
Boses history: Bose Corporation was founded in 1964 by. Dr. Amar Bose, a professor of
Electrical Engineering and Computer Science at the Massachusetts Institute of Technology.
Sherwin Greenblatt and Hose shared a love of music, but recognized that the high fidelity
(hi-fi) products then available did not accurately reproduce sound; Greenblatt become
Bose Corporations first employee, the two (Dr. Amar Bose) planned to build a company
based on innovations in acoustics and electronics. For three years, virtually all the
companys revenues were earned by developing portable battery operated equipment, hi-fi
was considered the hobby side of the business. In 1968, Bose Corporation launched the
901 speaker, which incorporated proprietary Direct/Reflecting technology, simulating the
feeling of live sound by radiating sound waves to the listener directly and via reflections
off walls, ceilings, and doors. This speaker was a huge success, landed by a growing
market of audio enthusiasts. Two years later Bose introduced the 501 speaker, which also
had Direct/Reflecting technology but was half the size of the 901 speaker. In 1973, Bose
introduced the 301 speaker, which produced true hi-fi sound but could fit on a bookshelf.
In 1970s, sales of Bose speakers grew rapidly and during this year, Bose develop a car
stereo that would produce exceptional sound; Cadillac Seville first offered an option for a
Delco-Bose sound system in 1982, by 1990 sound systems were available in cars made by
General Motors, Honda, Acura, Audi, and Nissan. Due to the long history and marketing
positioning of Bose, they were very picky about their vendors.
Boses strategy: The Companys mission is to provide outstanding sound experience to
everyone in the whole world. First, the company constantly sought new markets around the
world and had exceptional perseverance in opening markets. Second, Bose Corporation
sought broader channels of distribution. Third, the company produced systems as well as
components.
Manufacturing strategy: Tom Beeson Considered that If we were big enough, wed do
everything ourselves. But Bose cannot integrate into some areas, such as owning the
steamships or the trucking lines that transport their speakers. Bose had good relationships
