Skullcandy Analysis
EXTERNAL ANALYSISIndustry- Porter’s 5 forces Bargaining Power of Suppliers {LOW}Many suppliersHigh differentiator- designCompetitors- Apple, Sony, Bose Sales- USA- 70% sales No high-end technologyNo production- external production Bargaining power of buyers {HIGH}Fluctuations in demandBuyers are price insensitive Profits > (2012: $139,432 / 13: $93, 134 / 14: $110, 634)Product: differentiatedAlternatives available (high switching costs)Buyers know the product + discountsThreats of Substitutes {Low}No substitutes availableHigh switching costsNew Entrants {High/low}Entry barriers > high/lowMarket is saturated Advantage of differentiation Competitor AnalysisCompetitors: Sony, Sennheiser, Bose, and Dr. DreStrengths SonyExperience> various divisions Brand image (PlayStation) Sennheiser Increased wireless usageTranslation systemDr. DreOnline streaming of musicExecutive designStrong financial capacityBoseInnovation in noise cancellationServes in the military and aviation industriesMutual Strategies of Competitors1. Dr. DreAdvertising through celebrity endorsements 2. SonyAccelerated execution of updated strategies3 core businesses: Mobile, games, TV Reinforce new business for sustainable growth e.g. medical and security.3. Bose To create long term value (convenience, choice for customers> digital age)4.SennheiserSelective distribution (few retail outlets > specific geographic locations)Consistency of quality services worldwidePEST- USAPoliticalIntentions with war and terrorists leads to international criticismIncrease in threat of terrorism Mass political economic influence national and group policy makingEconomical GDP: $16.7 trillionWell-developed economy with manufacturing and service industryEconomic crisis in 2008 effect on economy in an alarming pointIncrease in budget deflectSocial Ageing population Labor storage and rising taxes Cultural diversityEducation & healthcare system is best in the world Increase in racial discriminationTechnologicalIncrease in mobile usageInnovation/technology are corner stores for U.S economy are the Nano, Bio and environmental Technology Online growth Competition rising from India & ChinaMarket Overview Smart headphones; health & fitness monitoringGlobal headphone market expanded by 10%; 16% in retailSport headphone segment accounted for 4% of global shipmentsGlobal headphone market will be worth $9.6 B by end of 2014.Megatrends Wearable device penetration will be more than double over the next year from 6% to 13%.INTERNAL ANALYSISSkull Candy Mission statement:  Our brand and distinctive logo symbolizes youth and rebellion, and embodies our motto, “Every revolution needs a soundtrack.” Founded on innovation, we fuse bold color schemes, loud patterns, unique materials and creative packaging with the latest audio technologies and innovative functionalities to create new and unique products. Our headphones feature our distinctive Skull candy sound and leading edge design. We offer a wide array of styles and price points and are expanding our brand into complementary audio products and accessories.

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High-End Technologyno Production And Smart Headphones. (April 2, 2021). Retrieved from