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Case Analysis: Skullcandy

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Case analysis – Skullcandy Student ID: Date of Submission: Word count: 1. Does Skullcandy have a sustainable competitive advantage in the market? If so, what is it and why is it sustainable? Skullcandy offered sport aesthetic headphones with advanced functionality in both local board shop (skateboard, snowboard shops, etc) and mass market channels such as Target, Best Buy, college bookstores, etc. Since this company focused on products targeting to snowboarding and skateboarding industry, it has sustainable competitive advantages in these core markets. The competitive advantages are distinct designs and convenience to use when the headphones are integrated into Giro ski and snowboard helmet and MP3 equipped backpacks and watches. Such designs and functionalities satisfied snowboarders …show more content…

However, this company got a loss of $9.693 million in 2010 and a loss of $3.011 million in 2013. The company got a profit of $12.344 million, $18.621 million, and $25.816 million in 2009, 2011, and 2012 respectively (Skullcandy, 2013). The company’s performances proved the concerns of the investors about the sustainable development of the company mentioned in the case. The company’s performances in 2013 were also impacted by the changes of leadership with new four leadership positions. At the present, Skullcandy focuses on providing two main categories of its products – audio entertainment and gaming. In which, audio entertainment products represents 85.2% of consolidated net sales while gaming headphones represents 14.8% of consolidated net sales for the year ended on December 31st, 2013. It also has opportunities to expand international with primary focus on China, Canada, India, Middle East, and Mexico. It is leveraging key strategic partnerships in mobile, table, and PC markets (Skullcandy,

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