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Sonos Inc. SWOT & PESTLE Analysis

ID : 521021153| Aug 2021| 18 pages

COMPANY PROFILE -Sonos Inc.

Business Sector :Consumer Electronics - Audio/Video Equipment

Operating Geography :United States, North America, Global

About Sonos Inc. :

Sonos is a developer and manufacturer of audio products. The company was founded by John MacFarlane, Craig Shelburne, Tom Cullen, and Trung Mai in 2002. It is headquartered at Santa Barbara in California. USA. Sonos is best known for its multi-room audio products. The company offers a wide range of speakers and audio components which include five smart speakers namely, Move, Roam, One, One SL, and Play:5, two sound bars namely, ARC and BEAM, television sound system (PLAYBASE), subwoofer (Sub) etc. Some products work with voice assistants like Alexa, Google and Siri. All of its products are fairly easy to set up and use. As of 2021, Sonos has a presence in 60+ countries, 50+ streaming services and 500+ patents for its pioneering technology. The company’s mission is to “help the world listen better”. It intends to make listening an immersive experience that touches all lives in special ways. Its vision is to enable playing of music in any part of the house. Sonos won the Technology & Telecommunications award for its multiplatform campaign at the WMA (World Media Awards) in 2020. It was also awarded the iF Design Award in 2021 for the packaging design of Sonos Arc.

Sonos’ Unique Selling Proposition or its USP is its revolutionary home music system. It enables playing of music in unison or separately in separate rooms. Sonos was the first company to launch wireless audio systems which were user friendly and possessed amazing audio capabilities. Although it is not the only manufacturer to offer wireless audio options in today’s market, it certainly is a force to reckon with. The company’s constant development in technology has helped cement a position for itself in today’s competitive world.

Sonos Inc. Revenue :


USD 1,326 million - FY ending 31st September 2020 (y-o-y growth 5.20%)
USD 1,261 million - FY ending 31st September 2019

Competitive Analysis of Sonos Inc.

SWOT
PESTLE
The SWOT analysis for Sonos is presented below in a matrix followed by the detailed analysis report:
StrengthsWeaknesses
1. Large and continuously growing consumer base
2. Innovative partnerships with 100+ technology brands
3. Intuitive, easy-to-use software for better user experience
4. Leading sound system in wireless audio category
1. Low levels of consumer familiarity inhibits product diversification
2. Major product line is dependent on development in music streaming industry creating cluster risk
3. Dependency on technology partner to integrate voice assistance creates negotiation disadvantage
OpportunitiesThreats
1. High-fidelity music streaming popularity will increase high quality speaker demand
2. Pandemic has increased demand for home theater technology adoption
3. Higher demand for Bluetooth enabled portable speakers
1. Increasingly competitive environment with new global players in the market
2. Direct-to-customer channels pose a threat to alienation of channel partner reducing product sales
SWOT & PESTLE (combined)
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Detailed SWOT Analysis of Sonos Inc.

Strength

1. Large and continuously growing consumer base: Digital movie streaming services allow customers to watch on-demand movies from the comfort of their homes. It has led to consumers increasingly opting for home theatre systems. As of 2020, Sonos has 11 million household consumers in the US market itself. It is twice the figure reported in 2016, with an opportunity of gaining potentially another 116 million affluent households from the core market. The current household acquisition of Sonos stands at 2.9 products per customer home, amounting to $270. The growing popularity of Sonos home systems might increase this acquisition to 4-6 products per customer home, amounting to $600. In 2020 a 50% increase was reported in the company’s consumer base compared to its figures in 2015. Popularity through word-of-mouth by existing customers is a major factor behind the surge.

2. Innovative partnerships with 100+ technology brands: Sonos has formed strategic partnerships with leading technology brands to promote its speakers range. Partnership with 100+ streaming services enables integration of speakers with the streaming service allowing customers to enjoy their music. As of 2020, 70% of its customers use music streaming services with their speakers. The company has partnered with leading brands such as Apple, Spotify, Pandora, TuneIn, and Audible for audio streaming services. Sonos has also partnered with voice assistance providers for its smart-speaker range, these include, Amazon Alexa, Apple Siri, and Google assistance. This allows customers to choose the perfect product based on compatibility with the service. Apart from these, partnerships with Ikea, Audi etc. has also helped the company develop newer products which in turn attract more customers.

The remaining section under "Strength" is available only in the 'Complete Report' on purchase.

Weakness

This section is available only in the 'Complete Report' on purchase.

Opportunity

This section is available only in the 'Complete Report' on purchase.

Threat

This section is available only in the 'Complete Report' on purchase.

Major Competitors :

Major Brands :

  • Arc
  • Sonos Sub
  • Move
  • SYMFONISK
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TABLE OF CONTENTS
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References used in Sonos Inc. SWOT & PESTLE Analysis Report

1. Investor Event March 9, 2021 - https://s22.q4cdn.com/672173472/files/doc_presentations/2021/03/FINAL-Sonos-Investor-Event-Presentation-3.9.21.pdf

2. Form S-1 Sonos, Inc. - https://www.sec.gov/Archives/edgar/data/1314727/000119312518213468/d403417ds1.html

3. The Works with Sonos Badge | Sonos - https://www.sonos.com/en-us/works-with-sonos

4. Form 10-K Sonos, Inc. - https://d18rn0p25nwr6d.cloudfront.net/CIK-0001314727/260b4476-595e-4e96-847b-ba8d2369a2fd.pdf

5. Sonos partners with IKEA and announces $99 speaker - https://techcrunch.com/2019/04/08/sonos-partners-with-ikea-and-announces-99-speaker/

The detailed complete set of references are available on request in the 'Complete report' on purchase.

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SWOT & PESTLE.com (2021). Sonos Inc. SWOT & PESTLE Analysis - SWOT & PESTLE.com. [online] Available at: https://www.swotandpestle.com/sonos-inc/ [Accessed 25 Sep, 2021].

In-text: (SWOT & PESTLE.com, 2021)

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Sonos Inc. SWOT and PESTLE analysis has been conducted by Rakesh Shewale and reviewed by senior analysts from Barakaat Consulting.

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