25 PORTERS Five Force Analysis –
Intensity of rivalry – HIGH - Many established competitors in the market, Beats by Dre's market share, Barriers to entry are low in tech industries, Recognition of opportunity in Action Sports, too competitive and trendy because the human hearing range isn’t changing from the 20 to 20,000 Hz range (no true competitive advantages in the headphone market, trends and fads are the real margins and add to the bottom line.) Superior sponsorships, Superior genres, Superior product. Bargaining power of buyers – HIGH - High price sensitivity, Low product dependency, Low buyer to firm ratio, No switching cost, Multiple alternatives , Great warranty, Good branding, Buyers determine our selling price, Most customers are …show more content…
Strengths: Well known and established brand name (perceived as cool), The availability of publicity and free advertisement through music videos, other commercials, High performance sound output with varied designs. World wide market demand, Market position (#1 sales volume for in-ear headphones and #2 overall), Brand authenticity and image, Established company culture (Employees skateboard around the office), Innovating new designs, Skullcandy has been able to acheive great celebrity endorsements such as snoop dogg and mark frank Montoya, NEWER COMPANY, MAY BE PERCEIVED AS UNRELIABLE, Brand image low overhead, Distinctive gaming competitiveness, Niche marketing, Target demographics/psychographics align perfectly Skiing/ snowboarding prevalence in Utah/Midwest, No cannibalization between the two companies ( cannibalization refers to a reduction in sales volume, sales revenue, or market share of one product as a result of the introduction of a new product by the same producer), Extreme sport’s popularity …show more content…
Opportunities: Online music-streaming services, Advertisement and promotion by Athletes and celebrities, A New variety of colors, Availability to create new products such as a home theatre experience, Market grows beyond their expectation, Economy recovers faster than expected, Raw Material Prices Drop (Copper prices have risen of 200% since 2009 but leveled off slightly the past year), We resonate so well with our consumer that's attractive [to partners] and we have great in-house capabilities around audio, International expansion, Industry growth, Brand recognition, Technological Innovation, Low price sensitivity, Strategic partnerships, Gaming industry, Low bargaining power of suppliers, Higher e-Commerce sales, Research and development, skullcandy has been developing new innovative products such as waterproof headphones and helmets with built in headphones, Sell the product in more places, Right now the product is mainly offered in skate shops and online, Searching for new strategic partners, growing gaming sector, Demand is still high, Newer, nicer, longer lasting technologies are available, Older demographics have more disposable income, Build brand image around extreme sport, Potential to become a major sponsor in the near future, Product
Intensity of rivalry – HIGH - Many established competitors in the market, Beats by Dre's market share, Barriers to entry are low in tech industries, Recognition of opportunity in Action Sports, too competitive and trendy because the human hearing range isn’t changing from the 20 to 20,000 Hz range (no true competitive advantages in the headphone market, trends and fads are the real margins and add to the bottom line.) Superior sponsorships, Superior genres, Superior product. Bargaining power of buyers – HIGH - High price sensitivity, Low product dependency, Low buyer to firm ratio, No switching cost, Multiple alternatives , Great warranty, Good branding, Buyers determine our selling price, Most customers are …show more content…
Strengths: Well known and established brand name (perceived as cool), The availability of publicity and free advertisement through music videos, other commercials, High performance sound output with varied designs. World wide market demand, Market position (#1 sales volume for in-ear headphones and #2 overall), Brand authenticity and image, Established company culture (Employees skateboard around the office), Innovating new designs, Skullcandy has been able to acheive great celebrity endorsements such as snoop dogg and mark frank Montoya, NEWER COMPANY, MAY BE PERCEIVED AS UNRELIABLE, Brand image low overhead, Distinctive gaming competitiveness, Niche marketing, Target demographics/psychographics align perfectly Skiing/ snowboarding prevalence in Utah/Midwest, No cannibalization between the two companies ( cannibalization refers to a reduction in sales volume, sales revenue, or market share of one product as a result of the introduction of a new product by the same producer), Extreme sport’s popularity …show more content…
Opportunities: Online music-streaming services, Advertisement and promotion by Athletes and celebrities, A New variety of colors, Availability to create new products such as a home theatre experience, Market grows beyond their expectation, Economy recovers faster than expected, Raw Material Prices Drop (Copper prices have risen of 200% since 2009 but leveled off slightly the past year), We resonate so well with our consumer that's attractive [to partners] and we have great in-house capabilities around audio, International expansion, Industry growth, Brand recognition, Technological Innovation, Low price sensitivity, Strategic partnerships, Gaming industry, Low bargaining power of suppliers, Higher e-Commerce sales, Research and development, skullcandy has been developing new innovative products such as waterproof headphones and helmets with built in headphones, Sell the product in more places, Right now the product is mainly offered in skate shops and online, Searching for new strategic partners, growing gaming sector, Demand is still high, Newer, nicer, longer lasting technologies are available, Older demographics have more disposable income, Build brand image around extreme sport, Potential to become a major sponsor in the near future, Product