CHAPTERCASE 4 Consider This ALTHOUGH MANY observers are convinced that Apple pur chased Beats Electronics for the coolness of its brand and to gain a stronger position in the music industry, others are suggesting that what Apple is really buying are the talents that Beats co-founder Jimmy lovine and Dr. Dre bring to the table. Since the death of Steve Jobs, Apple's visionary leader. the company has been lacking the kind of inspired personal ity it needs to remain a cultural icon. The critics argue that what Apple really needs is someone with a creative vision combined with a wide-reaching industry network and the ability to close a deal, especially in music where the person alities of celebrities are known to be idiosyncratic. In music jargon, Apple is in need of a "front man." With the acquisi- tion of Beats, it got two of the greatest creative talents in the music industry, with a long successful track record and deep and far-reaching networks love is of the opinion that Beats had always belonged with Apple lovine and Dr. Dre set out Dr Dre and my to model Beats Electronics after Apple's unique ability to marry con Marc culture and technology Intrigt Getty Images ingly, both lovine and Dr. Die took on senior positions at Apple. They continue to link Beats with today's top talent, even as some celebrities, such as Ariana Grande and Rihanna take a leaf from the Beats playbook Some singers now burnish personal brands with limited release headphones from other vendos Grande's wireless Cat Ear Headphones (Brookstone, 5150) and Rihanna's bedraled tiara Friends Dolce & Gabon, 9.000) are just two examples That Beats' founders keep ongoing roles indicates how much Apple's culture has changed under CEO Tim Cook coolness factor. Do you agree this assessment 3. If you believe that Apple boughts Electronics to bring Jimmy Iovine and Dt Dcinto Apple, what are the potential downsides of multibillion-doll acqui-hire" (an acquisition to re key personnel 4. Ir Beats Electronics' core competencies are indeed Intangibles, such as coolness and marketing savvy. Indent lovine and De Dre were not the first superstars from Why or why not? flashy Industries he brought to Apple. In 2013. Apple hired Kamer Burberry CEO Angela Ahrendts to head its retail opera- tions. Bringing in superstars from the fashy industries of music or fashion to Apple, let alone into senior executive roles would have been unthinkable under lobs. Under his sop-down leader ship only Apple products introduced to the public by himself in well-rehearsed theatrical launches were allowed to shine. Questions you think these competencies all remain as valuable 1. Which muste streaming service do you use, if any? Why under Apple's ownership? Why o why not? are you using this particular service and not others? Are 5. The ChapterCase provides at least three theories why you a paid subscriber? Why or why not? Apple purchased Beats Electronics. Briefly sketches 2. The ChapterCase argues that Beats Electronics' core of them. Which of those do you believe is most acces competency lies in its marketing savvy and in Dr. Dre's rate, and why