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One big reason Bose bought McIntosh

CoolHomey501

CoolHomey501

New Member
Bose sells into the auto industry however the Bose brand doesn’t have enough respect with luxury buyers. Some luxury car brands want premium everything and feel the Bose brand dilutes their high end luxury car brands.

McIntosh is premium performance and quality so is the solution for Bose to improve their reach into the auto market via McIntosh’s luxury niche

McIntosh audio systems will be expensive but for high end luxury, these buyers aren’t that price sensitive. They want premium brands and will pay premium prices. These buyers want to feel exclusive when they buy luxury cars and Bose does not deliver in this respect but McIntosh does.

Private equity can’t do anything with McIntosh bc the PE playbook is cut costs, improve efficiency and use software to eliminate people. Doing such would eventually destroy the brand value McIntosh has built, but Bose can make better value of the brand by selling it into the auto market and fill a luxury niche Bose is not capable of by itself.
 
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Truth is McIntosh has for decades now had many mutually advantageous relationships with several interested companies which have provided it with funds for R&D, sales/marketing and improvements to it's manufacturing infrastructure to stay up to date technologically relevant with ever changing consumer demands. In addition, it remains essentially an independent, privately held entity with autonomous control over it's direction in the niche audio industry. Nothing particularly interesting about this new relationship other than it's Bose.
 
CoolHomey501 said:
Bose sells into the auto industry however the Bose brand doesn’t have enough respect with luxury buyers. Some luxury car brands want premium everything and feel the Bose brand dilutes their high end luxury car brands.

McIntosh is premium performance and quality so is the solution for Bose to improve their reach into the auto market via McIntosh’s luxury niche

McIntosh audio systems will be expensive but for high end luxury, these buyers aren’t that price sensitive. They want premium brands and will pay premium prices. These buyers want to feel exclusive when they buy luxury cars and Bose does not deliver in this respect but McIntosh does.

Private equity can’t do anything with McIntosh bc the PE playbook is cut costs, improve efficiency and use software to eliminate people. Doing such would eventually destroy the brand value McIntosh has built, but Bose can make better value of the brand by selling it into the auto market and fill a luxury niche Bose is not capable of by itself.
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The USA does not have a single "Premium" luxury brand. If Cadillac is our "Premium" brand, then GM needs to reboot the whole line. From the Press release you maybe able to peer into what Bose with be leveraging with McIntosh. It's going to be a MIT experiment with the "Frat house" of players.

"The combined forces of Bose and McIntosh Group also opens new opportunities in the automotive sector. By leveraging Bose’s 40-plus years of experience in automotive audio, and McIntosh Group’s legacy of performance and design, the brands will work together to expand their research and continue to engineer authentic in-car experiences that redefine automotive sound." “Over the last six decades we’ve delivered the best premium audio experiences possible; now, with McIntosh Group in our portfolio, we can unlock even more ways to bring music to life in the home, on-the-go and in the car,” said Lila Snyder, CEO of Bose Corporation (MIT alum). “We look forward to honoring the heritage of these brands, investing in their future and pushing the boundaries of audio innovation to bring customers experiences they’ve never heard before.”
 
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