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A Little History and Present Summary:
BSH Home Appliances was founded in Germany in 1967 with the merger of Robert Bosch GmbH and Siemens AG in Munich. Both these companies got together to create what is today Europe’s largest home appliances company. Individually, Robert Bosch GmbH went on to become the world’s largest producer of motor parts and Siemens went on to become the largest engineering company in the World.
Bosch is one of the biggest producers of home and domestic appliances in Europe. It runs 43 factories located in 15 different countries. The company prides itself in producing some of the best cooking appliances such as dishwashers, cooking equipment, freezers, driers, vacuum cleaners, coffee makers, irons, deep fryers and food processors among other assorted domestic appliances. More than 75% of the company’s sales are generated happen outside Germany.
Bosch and Siemens merged to form the BSH home appliances and began operations in 1967 on a 50-50 arrangement. The joint venture was to provide a market edge in the ever competitive global market place. The company began originally with three plants all located in West Germany. They started off with 14,000 employees. Their first year revenues were DEM 1 billion which were mainly generated in Germany the home country. The company focused its marketing activities on Western Europe during its ten years in business. The company was able to compete in the market because the two companies had established themselves individually as premium brands.
In the mid 70s, the company decided to move abroad. It acquired Pitsos A.E a company located in Greece that was manufacturing cooking appliances, and refrigerators. To step up innovations, the company produced a refrigerator that could store food at varying temperatures. Due to the economic recession observed in the European market in the 1980s, several competitors underwent mergers and bankruptcies creating a market void. By 1990s, BSH had emerged as the leading manufacturer of domestic appliances in the newly created Germany and second position overall in Europe. The company entered the Spanish market and acquired several companies that were dealing with the manufacture of domestic appliances.
Global Expansion in The 90s
The year 1991 saw the establishment of a toe hold in the United States which was used by the company to export dishwashers there. The dishwashers that were exported were nearly the same as those that were sold on the German market. In 1993, the company extended its wings to Eastern Europe and acquired a factory to process small domestic appliances such as vacuum cleaners, blenders and food processors. The company restructured its worldwide distribution channels and reduced the European warehouses significantly. The most significant development of the 90s was the development of a plant in New Bern North Carolina for producing dishwashers.
The 2000s And Beyond
The company realized increased revenues by more than 14% in the early 2000s due to an expanded product portfolio. It entered into a partnership with Japan’s Hitachi Ltd to produce washing machines designed with a front loading technology. The company continued its expansion efforts in the US market. In 2003, it moved into new headquarters in the Neuperlach district of Munich. The company has continued expanding with the introduction of new products in the market and offering consumers a wide range to choose from.
The company has continued with rapid expansion and is ranked among the top three kitchen appliances producers in the UK. Moreover it generates an annual turnover of more than £500 million in the United Kingdom. It aims to become the leading producer of home appliances in the UK and Ireland.
The biggest home-appliances categories that Bosch manufactures in are: