Beat by Dre Essay Example | Topics and Well Written Essays - 2000 words

Beat by Dre - Essay Example Beats by Dre is a brand name for speakers and headphones produced by a company called Beats Electronics. Beats by Dre has influenced the headphone market and industry by creating successful premium headphone products. According to Dr. Dre, the brand’s focus on bass was motivated by the need to allow music listeners to listen to all the music. The popularity of Beats by Dre was driven by the firm’s marketing practices. The company focused on branding, endorsement deals and product placement. Dr. Dre and Jimmy Iovine use celebrities and other famous personalities for brand endorsement. Beats by Dre headphones were conceptualized after Dre. Dre and Iovine identified a problem with the quality of audio products offered to customers. They identified the substandard audio quality of Apple’s headphones. Initially, Beats by Dre entered into a partnership with Monster Cable to develop and manufacture headphones and speakers. In order to promote the products, Beats by Dre relied on advertisements and product promotions by musician and rappers (Steinberg, 2014, p. 1). The headphones were also strategically placed in music videos and movies. Beats by Dre also collaborated with celebrities and musicians in order to develop co-branded products. Beats by Dre is the dominant player in the headphone market for headphones priced above $100 (Meara, 2014 p. 1). In 2014, Apple, Inc acquired Beats by Dre in a deal that was valued at $3 billion. Porter five forces is a business tool that analyzes a business situation. The tool is based on five assumptions that determine the competitive advantages or powers in a business environment. The first assumption is the threat of substitution services and products, and the second assumption is the supplier’s bargaining power. The third assumption is the buyer’s bargaining power and the fourth assumption is the threat of new entrants. The last assumption is