Introduction
The BoAt has an amazing collection of wireless headphone, earphone & speaker that are distinguished by the quality, affordability & world-class design that the company offers. The Business model of Boat involves its business plan, revenue model, its competitors, SWOT Analysis and many more. The sole objective of the Boat company was to provide affordable, durable, and most importantly fashionable audio products & accessories for millennials.
Boat Lifestyle is a company that has just started to sail in the deep sea of audio devices market. The company is continuously performing in the market. Boat was in the right direction as the transforming India mostly comprising millennials would stick to social media and quickly search for a product in an online marketplace.
Business Plan
The company aims to satisfy the needs of users and developing products by closely observing their requirements. The first-ever product of the company was an indestructible Apple charging-cable and charger. After the founders sensed its urgency, the product was developed. boAt company has modified its approach since the beginning and has till date kept on improvising.
The company believes that Boat is a lifestyle brand and not a consumer electronics brand. The company is well-aware of its target audience. It presents stylish and affordable products that attract the youth. Keeping that in mind, Boat company has appointed all the young faces in the industry as its brand ambassadors. These ambassadors represent India’s most-followed passions (and obsessions) – Bollywood and cricket.
Boat lifestyle has a market share of 27.3% in the earwear category & it is the leading brand in this category.
Revenue Model
Moving into its revenue streams, Boat is now available both online and offline. They already touched upon its online partners while they serve their offline customers through the distribution model. It got more than 20 distributors that supply Boat’s products to offline retailers.
Competitors
The humongous success of Boat is not be gone unrecognized, though the market was felt saturated, the incoming of Boat has posed as a huge challenge for the brands listed following:
- Beats
- Harman
- JBL
- Sennheiser
- Hammer
- Mivi
- Skullcandy
- Noise
- pTron
SWOT Analysis
Strengths
- Profitability: Boat manufacturing businesses are able to produce strong gross margins from the sale of customized boats. They are able to reduce their development to any given time, and the barriers to entry for this business are extremely high.
- Leadership: Although it doesn’t take much to start this business, and entrepreneur looking to start their own boat manufacturing firm does need to have a substantial amount in of experience in the marine vessel industry.
- Boat manufacturing is a highly complex business that can produce very strong gross margins for a qualified owner operator.
- Many boat manufacturing companies often maintain strong relationships with one another in order to have certain aspects of a boat produced.
Weaknesses
- Economic & Political changes: These businesses are again highly subject to negative changes in the economy.
- Budget controls: As such, it is imperative that the entrepreneur develop ways to control all underlying and fixed expenses in order to ensure that the business can remain profitable even during recession.
Opportunities
- One of the ways that these businesses readily expand is by developing a number of preset plans that are used for mass production.
- Some boat manufacturing companies will license their designs and plans to other third-party boat manufacturing companies.
- Expansion: Additionally, additional orders can be handled at any given time via the expansion of the initial facilities.
Threats
- The risk of an economic recession which would crimp the ability of buyers.
- Heavy Competition: As the competitive range of Boat is very long, making it a huge threat for Boat as leading to the imbalance of its market position.
Conclusion
boAt lifestyle offers stylish as well as durable products which has been the highlight. Their effect on the market has been so much that the popularity of products of boAt has forced big giants like JBL to lower down the prices of their products to compete in the affordable audio segment.
