Marketing New Assignment: Beats by Dre Speakers

“Beats by Dre” Speakers
Name
Institutional Affiliation
“Beats by Dre” Speakers
Introduction
Analysts continue to argue that Apple made a bad acquisition by purchasing “Beats by Dre” due to the uncertainties associated with the franchise. While the company made an approximated $2.5 billion in sales and $500 million in music rights to Dr. Dre’s franchise, market pundits suggest that the company was headed for a financial failure before Apple Inc. decided to buy it for about $3 billion for full ownership. Financial market analysts noted that the famed headphone company was approaching bankruptcy before Apple Inc. bought it in 2013 because it had made consistently low sales volumes and had encountered significant difficulties in transitioning from the software industry to the hardware sector (Rogowsky, 2014). Nonetheless, the company reinvented itself by introducing the new concept of wireless connectivity in listening to music from various audio devices. Apple Inc. decided to buy the company due to its perceived profitability based on previous financial records. For instance, “Beats by Dre” made approximately $1.5 billion during the 2013 – 2014 financial years in profits. Due to its first mover advantage, “Beats by Dre” succeeded in buying back its shares from affiliated companies such as Monster Cable and HTC.
Category of “Beats by Dre”
Based on the introduction and nature of the company, “Beats by Dre” falls on the improvement on existing products scale because it is based on the reinventing of an existing product. The company sought to improve the user experience by introducing wireless technology in the transmission of sound to change how customers listened to their music. Moreover, “Beats by Dre” allowed its customers to synchronize their playlists on different platforms such as laptops, tablets, mobile phones, and earphones among others. Bodea, Purnus, Huemann, & Hajdu (2016) argue that such changes on existing products entail either radical or incremental improvements according to the changes in the aesthetics or functional values of existing products. Among the radical changes implemented on the new “Beats” products is the introduction of wireless technologies in playing music to ensure that the users enjoyed the convenience of listening to their preferred music. Additionally, the company sought to improve the user experience by improving the aesthetics of the audio devices to enhance the comfort of using various products from “Beats by Dre.” This included manufacturing products that did not stress the users or create any form of injury among the users of the company’s products.
Pioneer or Follower?
The company uses the pioneer strategy in manufacturing and marketing its products. The strategy involves availing new ideas to increase a company’s dominance in its targeted market and enhance its profit margins. While the follower strategy confers several b...