STRATEGIC ANALYSIS REPORT FOR SKULLCANDY8Skullcandy has already surpassed the growth stage of a business and is now focusing on customer retention in what is referred to as the maturity stage of a business. In the process of achieving this, there are strategies the company seems to adopt places it at advantageous positions (strengths) while there are others that limits its potential (weaknesses). For instance, thecompany has a competitive advantage that is built on four pillars. First, the company seems to have embraced high levels of efficiency. In the past, the company has faced production deficits when Target and Best Buy among other sellers accepted their products. There were challenges in production that saw the company partner with China to solve the issue (Hill et al., 2017). The company heightened the tooling cavities to produce more units per each cycle of manufacture. This would imply that there was an increment in the input/output ratio while basically maintaining constant levels of input to increase the output. Such an increased efficiency in production enabled the company to meet the demands of the market at the right time. Hence, thisforms a perfect example of how the company has pursued efficiency to increase and retain the customer base. Another component of competitive advantage is quality. When purchasing products such as headphones, consumers look for various features such as design, performance, durability, reliability and so forth. High-Quality produce in the face of a consumer would mean a proper fulfilment of these factors. Skullcandy’s products align well with the design in terms of functionality. The company is keen enough to while working with its Chinese manufacturers to ensure that they have accurate products. Moreover, various prominent figureheads have been used in the design of headphones particularly DJ Mike. According to Hill et al. (2017), Mike has a taste of transformers, Japanese robots among other magnificent things that are used to create
STRATEGIC ANALYSIS REPORT FOR SKULLCANDY9inspirational boards. A critical look at Mike's desires would definitely lead to the inference that the design of the headphones is dynamic and highly appealing for the sake of excellence. Innovation is another essential feature of Skullcandy as far as a competitive advantage is concerned. There is a need to note that innovation adds value to a product thereby attracting customers and enhancing the ability of a company to set its price at a different level. Skullcandy updates its product versions while also releasing new ones to the market. According to Segran (2015), Skullcandy works closely with researchers at universities specializing in technology and sporting activities. These universities help the company to know how product design influences experience among consumers as well as understanding human psychology from a sporting perspective. Hence, as far as innovation is concerned, the company knows what to bring to the market to attract more consumers and create a difference.