Brunswick Corp: What Went Wrong?

Brunswick Corporation is an American company that has been manufacturing and marketing a wide range of products since 1845. It was founded by John Moses Brunswick, who moved to the United States from Switzerland at the age of 14. Brunswick began as a carriage-making company but soon expanded into billiards and bowling equipment, and later, boats and boat engines. The company has since divested its non-marine recreational operations and is now focused on its core marine and fitness businesses. Brunswick is currently headquartered in Mettawa, Illinois, and has over 13,000 employees operating in 24 countries.

Brunswick's history and heritage

Brunswick Corporation, formerly known as the Brunswick-Balke-Collender Company, is an American corporation that has been developing, manufacturing and marketing a wide variety of products since 1845. It was founded by John Moses Brunswick, who moved to the United States from Switzerland at the age of 14. He opened a carriage-making shop in Cincinnati, Ohio, in 1845, but soon expanded into the manufacture of billiard tables.

In the late 1860s, the US billiards market was dominated by three firms: J.M. Brunswick and Brothers, Julius Balke's Cincinnati-based Great Western Billiard Manufactory, and New York-based Phelan and Collender. In 1873, Brunswick merged with Balke to form the J.M. Brunswick and Balke Company. In 1884, the company merged with Phelan and Collender to form the Brunswick-Balke-Collender Company, the largest billiards equipment maker in the world.

In the 1880s, Brunswick expanded its product line to include bowling pins and balls. The company continued to grow and diversify, adding new product lines and acquiring outside businesses. In 1960, the company changed its name to Brunswick Corporation.

Today, Brunswick Corporation is a global leader in marine recreation, delivering innovation and technology-driven solutions for experiences on the water and beyond. The company has more than 17,000 employees operating in 25 countries and is committed to sustainability and social awareness in its business practices.

Brunswick's business model

Brunswick Corporation is a global leader in marine recreation, delivering innovation that transforms experiences on the water and beyond. The company's unique, technology-driven solutions are informed and inspired by deep consumer insights and powered by the belief that "Next Never Rests™". Brunswick is committed to industry leadership and being the best and most trusted partner to its customers.

The company's business model revolves around several key strategies:

• Brand Power: Brunswick owns over 60 industry-leading brands across various categories, including Marine Propulsion (Mercury Marine, Mercury Racing, MerCruiser), Parts, Accessories, Distribution, and Technology (Mercury Parts & Accessories, Land ‘N’ Sea, Lowrance, Simrad, B&G), Boats (Boston Whaler, Lund, Sea Ray, Bayliner, Harris Pontoons, Princecraft, Quicksilver), and Service, Digital, and Shared-Access Businesses (Freedom Boat Club, Boateka, Financing, Insurance, and Extended Warranty Businesses).
• Innovation: Brunswick prioritizes innovation, leveraging technology to transform experiences on the water. This includes advancements in autonomy/assistance, connectivity, electrification, and shared access through the ACES Innovation Strategy.
• Consumer-Centric Approach: Brunswick's success is driven by a deep understanding of consumer needs, enabling the company to bring innovative solutions to market that elevate and simplify the boating experience for all proficiency levels.
• Synergies and Ecosystems: The company strives to build synergies and ecosystems that enable it to challenge convention and define the future of marine recreation.
• Global Presence: With operations in 25 countries and employees worldwide, Brunswick is able to design, engineer, manufacture, and distribute products that meet local needs and standards.
• Sustainability: Brunswick recognizes its role in connecting people to the world and is committed to conducting its business in a sustainable manner, minimizing its environmental impact.
• Employee Experience: Brunswick values its employees and strives to create a diverse and inclusive workplace that fosters collaboration and creativity.
• Awards and Recognition: The company has received numerous awards and recognitions, including being named one of America's Greatest Workplaces for Mental Wellbeing by Newsweek Magazine in 2024.
• Continuous Improvement: Brunswick is committed to integrity, safety, quality, and continuous improvement, reflecting these values in everything they do.

Brunswick's acquisitions

Brunswick Corporation, formerly known as the Brunswick-Balke-Collender Company, has been developing, manufacturing, and marketing a wide variety of products since 1845. The company has a long history of acquisitions, with some of the most notable ones outlined below.

In 1874, the Brunswick company merged with competitor Great Western Billiard Manufactory, owned by Julius Balke, to become the J. M. Brunswick & Balke Company. In 1879, it merged with another competitor, H. W. Collender Company of New York City, to acquire Collender's patented billiard cushions. In 1884, the partners formed the Brunswick-Balke-Collender Company (B.B.C. Company) with a capital of $1.5 million.

During the early 20th century, Brunswick expanded its product line to include diverse items such as toilet seats, automobile tires, and phonographs. In the late 1910s, they introduced a popular line of disc phonograph records under the name Brunswick Records. In 1930, Brunswick sold the record company to Warner Brothers and ventured into the refrigerator business.

In 1949, Brunswick introduced the "Model A" Mechanical Pinsetter, a fully automated unit for handling bowling pins in ten-pin bowling, competing with American Machine and Foundry (AMF). In the 1950s, Brunswick introduced a line of golfing equipment to compete with AMF in the leisure and sporting goods markets.

In 1961, Brunswick acquired Mercury Marine. In the 1970s, the company introduced the automatic scorer, which revolutionised the bowling experience by electronically tallying scores.

In the 1980s, Brunswick expanded into the marine industry, becoming a major maker of yachts and pleasure boats under brands including Bayliner, Boston Whaler, Maxum, Sea Ray, and Trophy.

In 1997, Brunswick acquired the Roadmaster bicycle division, one of the last US manufacturers of low-cost, mass-market bicycles. However, they soon faced competition from low-priced imports, primarily from China, and sold the division in 1999.

In 2001, Brunswick acquired Hatteras Yachts from Genmar Industries for approximately $80 million. They continued to expand their marine portfolio by acquiring Lowe Boats in 2004. That same year, they also acquired Northstar Technologies, a leading marine electronics provider, and merged it with Navman to create Northstar/Navman, a supplier to the Brunswick Boat Groups.

In 2018, Brunswick Corporation acquired Power Products – Global Marine & Mobile business from Genstar Capital for $910 million. This acquisition included businesses in the global marine, specialty vehicle, mobile, industrial power, and transportation aftermarket products sectors.

In 2019, Brunswick announced the purchase of Freedom Boat Club, the largest marine franchisor in the United States. They also established a new business structure, the Advanced Systems Group (ASG), composed of Power Products brands and the Attwood Group of businesses.

In 2021, Brunswick completed the acquisition of Navico, a global leader in marine electronics and sensors, for $1.05 billion. This addition brought industry-leading brands such as Lowrance, Simrad, B&G, and C-MAP into Brunswick's portfolio.

Brunswick's history of acquisitions reflects its dynamic approach to business expansion and its commitment to diversifying its product offerings.

Brunswick's bowling business

Brunswick Corporation, formerly known as the Brunswick-Balke-Collender Company, is an American company that has been manufacturing and marketing a wide variety of products since 1845. The company was founded by John Moses Brunswick, who came to the United States from Switzerland at the age of 15. Originally, the company was intended to be in the business of making carriages, but soon after opening his shop, John Moses Brunswick became fascinated with billiards and decided to make billiard tables instead.

Brunswick has contributed significantly to the global growth of bowling. In addition to manufacturing bowling equipment, the company has also opened bowling centers. In 1976, Brunswick opened the first bowling center in Moscow, Russia. Today, Brunswick is the world's leader in building new bowling centers and modernizing existing ones. The company offers a full line of comprehensive products and services to support new business development projects and day-to-day operations. Brunswick's bowling equipment and technology are used in over half of all new bowling centers in more than 100 countries.

In 2014, Brunswick announced that it would be exiting the bowling business to focus on its core Marine and Fitness businesses. The company sold its bowling center business to Bowlmor AMF (now known as Bowlero Corporation) and its bowling equipment and products division to BlueArc Capital Management, a private investment firm. However, BlueArc continues to produce bowling balls under the Brunswick brand name.

Brunswick's diversification

Brunswick Group, the world leader in pleasure boating, has announced its diversification strategy by signing a definitive agreement to acquire Power Products Global Marine & Mobile. With this move, Brunswick Group aims to expand its presence in the electrical equipment space, particularly in the marine and mobile sectors.

Power Products Global Marine & Mobile is a company that operates in the electrical equipment space, offering a range of products from batteries to cables and chargers. The company has sites in the United States, the Netherlands, Mexico, New Zealand, and China, giving Brunswick Group a more global presence. This acquisition falls under Brunswick's diversification strategy and will be integrated into Mercury Marine's Accessories and Spare Parts division.

Mercury Marine currently markets its new products under 11 different brands that are well-known in the boating industry. These brands include BEP, Blue Sea Systems, Czone, Lenco, Marinco, Mastervolt, ProMariner, Ancor, Park Power, Progressive Industries, and Del City. Each of these brands specializes in different electrical components and systems, such as battery management, circuit protection, digital switches, trim systems, and electrical cables for harsh environments.

The acquisition of Power Products aligns with Brunswick Group's strategy to diversify its business through its subsidiary, Mercury Marine Parts & Accessories. This move follows several other acquisitions in the highly profitable spare parts and accessories division. Additionally, the acquisition allows Brunswick Group to enter the recreational vehicle market, further expanding its business.

By diversifying into the electrical equipment space, Brunswick Group is positioning itself to adapt to the evolving landscape of marine propulsion. While fossil fuel outboard motors still dominate the market, the shift towards cleaner propulsion systems is inevitable. By investing in marine electrical systems and battery management, Brunswick Group is preparing for the future of clean propulsion technologies.

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