BUSINESS AND MANAGEMENT

Skullcandy Inc case study

Skullcandy Inc. typically creates world-class audio experience via the Astro Gaming and Skullcandy brands. The company creates both gaming and audio products for risk takers, pioneers, as well as innovators who assists inspiring to live at full volume (Melissa, 2013). From new innovations in the science of human and sound potential, to collaborations with coming musicians or athletes, this company lives by its mission of inspiring life at full potential through forward thinking ideas and technologies which fosters materialization and edge design (Ghuman & Aswathappa, 2010).

On the other hand, in terms of development, it is widely acknowledged that majority of the business entrepreneurs do straggle with the main objective of maintaining the economies of scale since it is the main driver of economic development (Karami, 2007). With it, it means new business opportunities realized are used in introducing innovations into the market, secure competiveness of the economy through creating new jobs.

In other words, the forward-looking objective of this company is related to the general consummation of the tender offer or merger and any associated benefits of the acquisition through the Incipio of Skullcandy. It is will be relied on available information regarding its current expectations, assumptions and forecasts as well as the involved number of risks which may occurs in the long-run (Melissa, 2013). Moreover, some forms of uncertainties which have the potential of causing actual results may differ materially from those expected through the company’s forward looking statement. 

Nevertheless, such uncertainties and risks are coupled with various factors of which some of them are beyond the control of the management authority. In particular, the risks which one or more closing circumstances to the transactions of the company may not be waived or satisfied on a timely basis. This is to say that due to the fact that there might be some sort of material patters arising from the management authority’s efforts, there is the need of satisfying the approval of the set objective of its establishment with regard to the economies of scale or the level of its competitors in the industry (Karami, 2007).

Without having that in mind, the activities of this firm may in return incur some unexpected costs, delays, or liabilities which are accompanied by adverse impact of viable product announcements i.e. operating performances and revenues, changes in demand of the company’s product, changes in inventories pricing and gross margin pressure, control of expenses and the general loss of customers.

The annual report of the 10-K also illustrates that the significant litigation, with regard to the intellectual property matters for instance risk associated disposition and acquisition, more especially those linked with international operations, affects matters relating to labor and employment in the company.  In addition to that, the shift in accepted accounting principles and the increase in new regulations of the corporate disclosure and governance standards affects the projected outcomes of this company (Ghuman & Aswathappa, 2010).

With respect to the above considerations, it should be noted that the company operates internationally or domestically. The brand of the company is what symbolizes rebellion and youth which in turn embodies its motto. Seemingly, it is the technology data analytic retailers and brands which aid in monitoring the nature of competition available in the industry hence making it easier to track its rivals (Stokes, 2011). This is to say that it assists in measuring how customer brand gauge up against the competitors.

Social or technological growth with regard to the extensive use of the mobile devices as well as increasing disposable income will be projected as the major driver of the industry revenue growth hence necessitating the need of having a strong management authority which will assists in rebuilding the team or the employees’ morale.  This is because, success is all about obtaining individual workers who are engaged in producing amazing products or telling stories relating to the core competencies of the company (Stokes, 2011). Consequently, it is through these parameters that the consumers will be in the position of connecting passionately with the company’s brand and products. Rebuilding the base i.e. the values, culture and people, is one of the strategies which will enhance the production of remarkable products or emotional and authentic connection with the clients hence inevitably producing sound decision making and financial results.

In connection to that, value chain analysis R&D together with innovations or inventions at the forefront of the mission of this company continues to expand its technological base and research pursuits. This is to imply that its mission still comes to life via an in-house product development team or the availability of human potential labs which is basically a program which seeks in understanding how science, music, and technology can be used in unlocking human potential in the current economic world (Stokes, 2011). The other fact is that when it comes to issue of capturing the essence of the youths, culture, as well as explosive intersection of customer needs, creativity is the main factor which defines its culture. In the process of understanding the motivating factors for online purchases or making it easier for clients to shop all of the products they want, when and want it comes as the diver of its profound success (Melissa, 2013). This is usually true when it comes to the dominance in the world online retail. 

Nevertheless, since selling online might have appeared to be a right choice, everyone recognizes the fact that in case the company was to sell to its targeted demographic group, it had to meet them where they are, which a social matter, and then motivate or take them where it desired them to go.  This is to say that since the company had already spent his resources as the driving force for the digital innovation i.e. advertising, meeting the current requirements of the customers cannot be a strain to digital marketing (Ghuman & Aswathappa, 2010). There ought to be a diversified system in place which makes it easier for its fans to engage with the products through making instantaneous purchasing decisions. Anything beyond that scale means that there is the likelihood of losing the sale. Similarly, since the objective of this company is to ensure that its customers are well informed about its products it is expected that information is relayed to them in the most convenient way so that the purchasing process remains to be faster and friction-free.

Although this was a major step in the right direction, the team was still learning about performance issues and problems from their customers. Without any proactive real time performance monitoring and management tools, they simply were not able to see what was going on real time (Kakkar, 2009).

With regard to its daily economic activities, the Skullcandy is much careful in branding and savvy expansion. The products of the company (headphones), is much preferred because of its extensive focus on technology that is combined hand-free cellular techniques.  The management authority realizes this real strength as a fashionable concept for their brand.

Workers always race down the corridors of the boards which the objective of keeping focuses on the lifestyle hence pumping energy into the product brand.

On the contrary, as much has the company has expanded into massive retailers for instance Bet Buy and Target; it has turned down numerous retailers. The reason for this is because the management wasn’t ready to diminish the edge of their brand thus making it to be available in various places. This is usually as a result of there much forecast on inventory. It is noted that the company does not keep too much inventory on hand as well as ensuring that there is not shortages necessitates the use of money in delivering them to the customers (Kakkar, 2009). This gives it a strategic ability of ensuring that the client gets the products quicker hence maintaining the company brand.

The biggest challenge which has somehow become persistent is the need of associating new product development in three different developmental cycles at the same time. So as to ensure that this is overcome, the company ensures that its brand name is becoming well recognized and its products are made available in an ever broad range of outlets. This means that the investors will also be more concerned i.e. assessing the performance of the company so as to determine whether their funds were wisely invested. Besides that, even though its revenues have been increasing considerably, competition also lowers the net margin (Trent, 2007).

With respect to the general competencies of the company, the style trends and functionality in headphones is relatively easier to quickly imitate. Therefore, the major source of this competitive advantage is the extensive development of the brand loyalty amongst clients and distributors (Weske, 2012).  Equally, the informal and small size atmosphere at Skullcandy ensures that there is still a close contact between members and their team and other personnel within the enterprise. Such deep connections in skateboarding and snowboarding words assist to the lining up of endorsement of funds.

In matter relating to promotion, the continuous use of social media for instance facebook, Twitter, You Tube and Instagram have greatly improved the image of its products to customers through encouraging them to continued buying them. This then is to say that, the former category of the company’s product has the advantage of accessing and maintaining greater financial base and distribution of resources hence enjoying the economies of scale in return (Weske, 2012).  Finally, by considering the strategies used for the sake of fine-tuning their own market entry, it is then vivid that the latter has extensively benefited from its day to day economic activities

To sum up, management consulting is regarded as being one of the earliest instances of business outsourcing. With it firms and managers usually seek advice as well as support for various issues which are critical as the strategy for tabling procedural matters for instance taxation and accounting. Conversely, through the use consulting firms or consultants, majority of the business in the industry have remained to be prevalent for a long period hence no much research conducted on the same. The reason for this is because this strategies and practices of firms in the industry are viewed through the lenses of institutional entrepreneurship, organizational theories which assists in understanding the professional service firms

 

 

 

 

References

Melissa A. S, (2013). CASE 13: Skullcandy

Karami, A. (2007). Strategy formulation in entrepreneurial firms. Aldershot[u.a.: Ashgate.

Ghuman, K., & Aswathappa, K. (2010). Management: Concept, practice and cases. New Delhi: Tata McGraw Hill.

Weske, M. (2012). Business process management: Concepts, languages, architectures. Berlin: Springer.

Stokes, P. (2011). Key concepts in business and management research methods.

Kakkar, Arjun. (2009). Small Business Management: Concepts & Techniques for Improving Decisions. Global India Pubns.

Trent, R. J. (2007). Strategic supply management: Creating the next source of competitive advantage. Ft. Lauderdale, FL: J. Ross Pub.