Abstract

This case is about the strategic decision of Bose Corporation (Bose) to close down its retail stores in North America, Europe, Japan, and Australia. Its retail stores at other locations around the world were to, however, remain open and continue operations. The case dwells upon Bose’s relentless focus on research and development, which gave it a competitive edge over its rivals. The case details the travails of the retail industry and the onslaughts Bose faced from the e-commerce companies, which led to the closure of several of its retail businesses and a reduction in the number of its stores. Bose’s online strategy is discussed in detail along with its use of social media and online marketing. While some analysts were in favor of the store shutdown, others were quite critical and opined that Bose was likely to return to its store format. The case ends with the question whether Bose’s decision to shut down its stores was right and whether customers would purchase its products online without ‘experiencing’ the products in person.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Understand generic competitive strategies and the importance of a competitive strategy
• Understand the concept of core competence and the bases of competitive advantage
• Understand the channel strategy and channel levels

Keywords

Competitive Strategies; Generic Strategies; Core Competence; Differentiation; Channel Strategy; Competitive Advantage; Online-only Model; Omni-channel Retailing; Cost Leadership; Differentiation Focus; Single Channel Retailing; Bose Corporation; Online Strategy; e-Commerce; Strategy