The modern business environment requires a company to perform a variety of different surveys, researches, and other analytical activities in order to be able to effectively compete and adjust actions according to the market conditions. From the perspective of analytical research, marketing plays an important role because it allows a company to identify the current trends of consumer behavior, their preferences, and the most effective means of delivering the marketing messages. Therefore, marketing research paper example can be especially helpful for acquiring the required knowledge about the process of marketing analysis. Marketing research paper example provides an overview of how a specific process of identification of internal and external factors that influence the marketing power can be conducted along with information about the sources that are most suitable for this purpose.
Environment Analysis of Skullcandy Inc.
Internal Factors
From the perspective of internal factors that influence the company’s performance, it is required to note that Skullcandy Inc. is able to effectively utilize its recognizable brand image in order to attract the attention of the target audience. Considering the fact that Skullcandy emphasizes music, fashion, and sports, the main target audience of the company is identified as young people who value creativity, activity, and fun. These facts show that Skullcandy Inc. is incorporating innovative approach to the creation of new products in order to satisfy the highly demanding target audience.
Moreover, Skullcandy Inc. is utilizing an unorthodox approach to the distribution, as it controls product mix in order to balance the market reach and focus on the chosen target audience, which is active youth. Finally, it is important to note that by leveraging and exploiting its internal core competencies, Skullcandy Inc. was able to succeed and become one of the top performing companies in the headphones industry, creating an equal competition to Sony that is one of the oldest companies that operate in the sector.
External Factors
As for the external environment, prognosis shows that headphones market is going to experience a considerable growth. Additionally, it is required to note that in-ear headphones are becoming the most dominant product in the sector that is a positive sign for Skullcandy Inc., as it can effectively satisfy the demand for in-ear headphones designed specifically for active people. Moreover, the market capacity forecast shows that the US market is going to grow with a stable rate but quite slowly, while the consumption of the headphones is predicted to rapidly increase in the rest of the world countries.
Finally, the most promising news about the external environments shows that wired headphones are still the most preferred type by the consumers. It is a good sign for Skullcandy Inc. because Bluetooth headphones are usually less reliable and do not meet the needs of the target audience. Moreover, MP3 players continue to dominate in the range of the most frequently used types of devices for the headphones, thus, provide additional incentives for the companies to expand their production. Hence, in the particular case of Skullcandy Inc., the best way to increase its performance is to focus on the emerging markets that have the greatest growth potential.
References:
- Earphones & Headphones Market Size | Industry Report Summary, 2024. (2016). Grand View Research. Retrieved from http://www.grandviewresearch.com/industry-analysis/earphone-and-headphone-market
- Headphone Industry Market Share Statistics. Statistic Brain. Retrieved from http://www.statisticbrain.com/headphone-industry-market-share-statistics/
- Headphones market to exceed $8 billion in 2013 | Latest report on industry from Knowledge Partner. (2013). Ceatec. Retrieved from http://www.ceatec.com/report_analysis/en/ra_131118_2.html#tabJan6
- Heffernan, M. (2011). Skullcandy: How A Small Company Reaches a Big Market. CBS Money Watch. Retrieved 21 December 2016, from http://www.cbsnews.com/news/skullcandy-how-a-small-company-reaches-a-big-market/
- SKULLCANDY, INC.: FORM 10-K (Annual Report). (2016). EDGAR Online. Retrieved from http://files.shareholder.com/downloads/ABEA-5FMQI8/3489146217x0x879697/18E48AD1-5244-4C63-AEFD-576DC0F1AF23/SEC-ABEA-5FMQI8-1423542-16-112.pdf