In this analysis, I go in-depth on Beats structure as a company, its technological standings, and areas to improve.

1. Page 1
An Environmental Analysis for
Beats by Dre
Nya Paulection
Full Sail University
Project & Portfolio II: Business and Marketing
April 17, 2022

2. Page 2
The STEEPLE Analysis (Citations required)
PROVIDE at least one observation for each of the seven elements of the STEEPLE analysis
(you can make more). These should be full paragraphs that include explanations and detail.
These observations should also help you to make statements that go in the SWOT chart, below.
Remember to put a “short form” citation in APA format after each observation here and list the
corresponding APA “long-form” reference in the Reference section at the end.
Keep the focus on the division/brand. You may observe something that affects the parent
company or the industry, and which will affect the division/brand, too. It’s okay to include those
observations, but always remember it’s the division/brand you’re working for. Not the parent.
SOCIOLOGICAL: Beats by Dre’s executive producer, Jason White, speaks on the issue of
companies switching to agencies to show diversity without truly addressing the issue. “Diversity
is about bringing in different voices that experience life differently, he says — those living in
urban areas such as street culture kids.” (Sanchez, 2017) Beats by Dre has been an innovative
country because it was created by a black man from the streets of Compton. The unapologetic
realness has been the Beats back when only rappers embrace the brand.
TECHNOLOGICAL: Beats by Dre’s success can be linked to their incredible marketing. The
brand is known for not only quality headphones but also fashion gear. Beats was one of the first
luxury headphones brands to be modeled by only well-known celebrities. “His Beats by Dre
headphones became wildly popular and are often referred to as the best quality sound gear on
the market.” (Facciuolo, 2014) Beats by Dre also has a very wide range of products in their line.
A few include Rapper-Calibrated City Cars, Lush Fur-Clad Headphones, Rapper-Renovated
Laptops, etc. Beats by Dre is not only tech its fashion.
ECONOMIC: Beats by Dre came out with $300 headphones back in 2008 when people were
still using iPods. Many saw this price tag as something that only celebrities and rich people
could afford but as iPhones became more popular the natural want for headphones, good
quality headphones became a must. “Beats’ founders had realized. “earbuds,” were becoming
the standard mode of consuming music… sound quality was often sub-par and certainly not the
way artists, producers, or music lovers wanted their music to be heard. (Sanburn, 2013)
ECOLOGICAL: While I'm unable to find credible information about Beats, Apple as a company
is very vocal about their efforts to be a green company. By 2030, the company plans to be
carbon neutral, which means the carbon emissions that Apple plants have released into the
atmosphere will be met with the efforts that Apple makes the fund carbon saving around the
world. (“Apple charges”, 2021)
POLITICAL: Dr. Dre and Eminem are held responsible for enacting a law that makes it legal to
record policemen on duty. This is in response to police threatening to shut down their concert as
explicit videos were being shown. Many states have been pushing to make recording cops
illegal and worthy of jail time, even though police misconduct has been caught on cameras
multiple times. (“Dr.Dre Beats” 2019)

3. Page 3
LEGAL: Dr. Dre returns to court with former friend Steven Lamar. Mr. Lamar claimed that he
was the “ founder of Beats headphones, its design and corporate identity”(“Dr.Dre faces” 2016).
Lamar was awarded 4% royalties from a previous ruling but returned to court believing that this
4% should apply to all Beats merchandise, not just one product. Through the presentation of
evidence, the judge ruled in his favor. Guardian makes sure to highlight that these lawsuits have
become more frequent since the acquisition of Beats by Apple. Hinting that the partnership may
not be all that it seems.
ETHICAL: With each purchase of the RED PRODUCT (Beats Pil+, Solo 3) a portion goes
towards fighting the AIDS epidemic and COVID-19 affecting sub-Saharan Africa. (“Beats”, n.d)

4. Page 4
The SWOT Analysis (Citations optional
Provide at least three statements in each of the four sections of the SWOT chart: Strengths,
Weaknesses, Opportunities and Threats. Include explanations and details within the chart that
make your points clear. A phrase is not enough. Each point should be a short paragraph.
HELPFUL HARMFUL
INTERNAL
STRENGTHS
1.Beats has established a strong image as
expensive products for music lovers
2. Dr. Dre was able to secure a
partnership with Apple, the worlds leading
tech giant. Through this association, he
has secured not his wealth but the quality
that Apple products offer will also be
associated with his brand
3. Beats marketing is incredible. They
have successfully infiltrated each segment
of the market with products that are
appealing to all. Wireless headphones for
younger generations full of heavy bass
effects. Speakers for older generations
allow for interactions between families.
WEAKNESSES
1. While the partnership between Apple
and Beats has suspicions, the real reason
for the acquisition is still unknown. Could
Apple potentially close the line to only
offer Apple earphones and speakers?
While Beats is acquired of Apple, they
continue to be rivals in the same market
with two distinct products.
2. In some cases, Beats price for their
products versus the quality of the
technology has been questioned. Are
$300 Beats truly the best money can buy
at that range.
3. The environmental ramification of Beats
is hard to come by. This displays Beats as
a company trying to hide its process.
Allowing the public to learn more about
this already private company would show
more authenticity.

5. Page 5
EXTERNAL
OPPORTUNITIES
1. Because Beats are about more than
music, this allows Beats many avenues
they could go into. Perhaps creating a
fashion line as Beats is known for its
trendy taste. Not only sticking to
technology will be the next step for Beats
and Apple
2. Beats should also expand their range of
prices for products. As price is always the
most important indicator within an
oversaturated market such as technology.
By lowering the prices or offering a vlue
price, Beats would secure the flow of cash
within a new market.
3. Beats could also attract the younger
crowd by featuring not only new artists but
student athletes. As athletes are incredibly
drawn to Beats fashion cred and all-
around quality. Gifting a pair to student
athletes searching for scouts could be a
great opportunity for Beats to get involved
with education.
THREATS
1. Having collaborations between
musicians and headphone companies is
now the standard. This competition
between Dr. Dre and the market could
prove to be nerve wrecking.
2. As Beats constantly teams up with
celebrities for endorsements, their could
be a PR crisis in which a past celeb has
been canceled and their affiliation with
Beats could come back to bite them.
Doing research about all who interact with
Beats is incredibly important
3. As with all trendy items, smaller
businesses swarm to create counterfeits
at a fraction fo the cost. While they lack
the quality of the original, they are
appealing, especially with the price of
Beats headphones.

6. Page 6
Conclusions: (Include Citations)
Findings lead to Conclusions. In two or three well-developed paragraphs, provide conclusions
for the company based on your analysis of the findings. This means talking about the meaning
of your findings. For instance, is there growing negative feedback from customers based on
perceived changes to quality? Then it would be fair to say that the brand probably has a public
relations crisis looming in the near future.
Try to assess the fit of the current market position for your product. How does it compare to its
competitors and its industry as a whole? Where does it excel? Where can it improve? How does
the company’s financial health factor into what it can and can’t do?
With this exercise, you should begin to identify what questions your client hired you to answer.
Note what should be new goals and actions for the future. Note whether there should be any
changes to product/service line, target market or message. You will elaborate in Week 4 when
you make specific, future oriented and actionable recommendations for your company.
Beats by Dre understands how to sell an emotional connection. This is seen through the many
campaigns such as,” You Love Me” a short film that speaks on the hypocrisy of black culture
versus black love. Beats has an incredible understanding of the power of their social status and
constantly releases films, campaigns, and articles that highlight these issues. While Beats’
marketing strategy for social causes is stellar its reputation for their products is worrisome.
The most common complaint is the question of Beats' technological standing. Critics believe
that the price associated with Beats products does not match the sound quality produced. Beats
are known for having a “bass-heavy” tone. Many argue that this unnatural preset can alter the
mix within a song thereby ruining the experience. A re-evaluation of their target market is also
needed. Understanding what their target market expects from their products and what price
range they are willing to spend, and what users do with their headphones should be the next
priority for Beats. Does the bass-heavy sound impact those who use their headphones for
podcasts or talk shows? These answers can only be answered through market research.

7. Page 7
References:
In APA format, list each reference you used (at least five). Each reference in this section should
have a corresponding “short form” citation in the STEEPLE section or the Conclusions section.
Apple charges forward to 2030 carbon neutral goal, adding 9 gigawatts of Clean Power and
doubling supplier commitments. Apple Newsroom. (2021, October 27). Retrieved April 15,
2022, from https://www.apple.com/newsroom/2021/10/apple-charges-forward-to-2030-
carbon-neutral-goal-adding-9-gigawatts-of-clean-power-and-doubling-supplier-
commitments/
Beats. (RED). (n.d.). Retrieved April 16, 2022, from https://www.red.org/products/beats
Dr. Dre Beats the cops in Michigan. HeadCount. (2019, December 16). Retrieved April 16,
2022, from https://www.headcount.org/politics-and-elections/dr-dre-beats-the-cops-in-
michigan/
Facciuolo , M. (2014, May 9). 32 beats by dre innovations. TrendHunter.com. Retrieved April
13, 2022, from https://www.trendhunter.com/slideshow/drdre-headphone
Guardian News and Media. (2016, September 20). Dr dre faces return to court in Beats
Headphones Case. The Guardian. Retrieved April 16, 2022, from
https://www.theguardian.com/music/2016/sep/20/dr-dre-new-court-case-beats-
headphones
Sanburn, J. (2013, January 16). How dr. Dre made $300 headphones a must-have accessory.
Time. Retrieved April 13, 2022, from https://business.time.com/2013/01/16/how-dr-dre-
made-300-headphones-a-must-have-accessory/
Sanchez, D. (2017, April 5). Lack of agency diversity the no. 1 issue for Head of Marketing at
beats by dr. dre. Moguldom. Retrieved April 13, 2022, from
https://moguldom.com/6679/lack-of-agency-diversity-the-no-1-issue-for-head-of-
marketing-at-beats-by-dr-dre/