Macro Environment Analysis

The macro environment of Beats Electronics can be assessed by closely examining the individual aspects of an international macro environment.

Concerning the company’s demographic environment, it can be said that the demographics in countries that are targeted by Beats Electronics have been undergoing notable changes. For one, Beats Electronics mainly operates in markets with an increasingly aging population. For instance, the median age in the home market, the United States, is at 37 years and is slowly increasing. Also, a similar median age applies to all targeted countries. Furthermore, the total population across all markets has been increasing substantially over the past decades. Keeping the company’s young target group of 16-24 years in

This is due to the nature of the company’s products as they are not subject to a high level of technological change or innovation. However, technological advancements in the industry still occur in the industry and neglecting these can have a negative impact on the company. A more significant technological advancement in the recent years is the use of “Bluetooth” and “NFC” technology which enables wireless playback of audio. Furthermore, noise canceling technology has also been implemented by the industry in more premium devices.

Culturally speaking, headphones, earphones and speaker are seen as common goods in many societies across the countries that Beats Electronics operates in. Moreover, some audio devices are also seen as status symbols increasing the consumers’ prestige. Taking this into account, it can be concluded that there is a large buyership that is willing to spend high amounts of money on products of Beats Electronics and other audio

Celebrities appear on TV, newspaper and especially on social media. Further, these individuals wear or carry fashionable items, including headphones, earphones and speakers. Doing so, they directly or indirectly influence people into purchasing the same items. Also, consumers specifically see pricy headphones as a fashion statement and base their buying decision less on the actual performance of the product. Moreover, buyers tend to purchase whatever their favorite celebrity is wearing at the moment. Due to these circumstances and the fact that celebrities become increasingly involved with potential customers of companies, the trend of celebrities being used for marketing purposes will increase in the