The rivals have forced GoPro to forego its premium positioning and reduce prices in order to move its action cameras off the shelves. As part of the further development of their brand identity, GoPro sold a 9% stake in their company to Foxconn. This kind of camera incredibly popular with sports enthusiasts, practice water sports, ski, snowboard, motorcycling and other extreme sports, or anyone wanting to record cool videos then upload in social media. This is the detailed SWOT Analysis of GoPro which covers the internal and external audits of company based on the important key factors such as market share, brand value, customer satisfaction, financial position, marketing strategy, competitors, economic conditions and others. GoPro Inc Marketing Strategy development requires a comprehensive market analysis. Moreover, the new products launched must be in accordance with the market preferences so the significant market share held by the company could be maintained and further enhanced. Company’s competitive and corporate strategy: Internal Analysis Summary, How activities fit together (or not fit together) The biggest challenge for this company is their capabilities interact with 5 forces with the threat of new entrants presenting the greatest potential to negatively impact GoPro’s market share, GoPro’s strategy of promoting a lifestyle, rather than just an electronic good, will contribute to GoPro’s sustainability as a premium product with dominant market share. The rivalry will continue to increase as new players have entered the market focusing on a subset of the space. "A l’époque, les seules options étaient d’utiliser un appareil jetable étanche et de le mettre en place de faço… The following excerpt is from the company’s recently released S-1: “In particular, we incorporate video compression and image processing semiconductors from one provider, Ambarella, Inc., into all of our cameras, and we do not have an alternative supplier for these key components.” Profits could also be hindered if competitors in this market do not possess manufacturing capabilities. This action was at the expense of expanding upon research and development of the product line, a trade-off often faced by technology companies. If you fit this description, you can use our free essay samples to generate ideas, get inspired and figure out a title or outline for your paper. Positioning – GoPro is positioned as a wearable action camera. This means that GoPro is the best in their industry, when it comes to turning their assets into sales. There are many ways to conduct a case analysis. He built the company as a sports enthusiast who wanted an easy and superior way to share his passions through video. This was achieved through focusing on their target market markets which majorly included enthusiasts and through their aggressive marketing; they were able to attract non-enthusiasts who only aimed at capturing special moments in their day to day lives such as weddings (Hooley, 2017). This condition will make industry profitability become lower as companies are subject to supplier’s prices. GoPro develops highly innovative cameras that are consistent with the customers’ needs of capturing videos and sharing online. To see an example of a full brand strategy / positioning case study, click one of the links below: BRAND STRATEGY ANALYSIS. PESTEL analysis is critical to understand the external threats & opportunities arising because of the macro environment developments. GoPro Business Strategy GoPro uses the content management strategy and it strives to eradicate the critical point of dealing with content by allowing the customers to share and transfer material from the cameras to a system that competently systematizes the … GoPro: External/Internal Industry Analysis, Team D. Background: After Nick Woodman graduated college he decided to try to open his own business and it was called funBug. Pssst… You can get 100% plagiarism FREE essay in 30sec, Sorry, we cannot unicalize this essay. SWOT analysis of GoPro Strength Weaknesses Unique business model Brand equity (quality, durability) VieVu Eyesee 360 Founded in 2007 by Steve Ward Designs, develops, manufactures and markets wearable video cameras and software for both law enforcement and private professionals worldwide "Made by Cops, for Cops" Good for jobs full of liability Hands free video and audio from GoPro has established itself as one of the best at taking advantage of this medium by using a unique and powerful technique. GoPro uses the content management strategy and it strives to eradicate the critical point of dealing with content by allowing the customers to share and transfer material from the cameras to a system that competently systematizes the material and enables suitable sharing and editing. You can order Unique paper and our professionals Rewrite it for you. Unique accessories also open up a new channel for content generation. From the company’s S-1 filing they describe a YouTube marketing strategy as the Virtuous Cycle: The company now has more than 7.2 million “likes” on Facebook, more than 2 million Instagram followers, and more than 1.8 million subscribers on YouTube, where the company is ranked as the No. As the established leader in versatile camera equipment for extreme sports, GoPro has established its unique position. 47.50%. they intend to further develop GoPro into a media company with content management a key pillar of this strategy. GoPro invested a total of $76.5 million on property, plant & equipment (PP&E;) activities during 2016. The early stages of the content management platform strategy are GoPro Studio and GoPro App. Moving forward the POV segment will command more market share from the overall capture device market. Attention! this essay is not unique. 2020 © gradesfixer.com. It offers other equipment too that include standby series of batteries, charging accessories and data cables to attach its GoPro cameras to monitors and televisions to manage and transfer data. On social media platforms GoPro can promote their tagline “The world’s most versatile camera” (2016a). Moreover, GoPro … The Stimulus Effect 29,106 views. Want us to write one just for you? The products of GoPro are marketed and sold through the retailers and wholesalers along with their official Website in United States and globally. In the next future availability of smartphones and their capability to capture video to create an accessory that transforms smartphones into underwater dive cameras probably will appear. Mounts are also offered by the company that empower the customer to attire that mount on their bodies such as wrist covers, head fastenings and chest binds. The share of the company in the market is also likely to enhance. A lot of new players are being attracted to this industry which will likely have an impact on price, features and quality of action cameras. Students who find writing to be a difficult task. Right off the bat, it is apparent that GoPro is intended to “capture life” but not just capture it but as it is experienced. Value Chain Analysis. Samsung Electronics also manufacture cameras to stream live like Smart Camera with Wi-Fi connectivity (Samsung Yahoo Finance, 2015). GoPro has an asset turnover ratio of 2.05% which is almost double the industry median of 1.06%. It is reported that 54% of the action camera owners own the cameras of GoPro, Inc. GoPro Business Strategy. Moreover, GoPro is intended towards the expansion of current business of capturing and broadening of the assortment with content management. The company prides itself on hiring people that share the same vision as their founder Nick Woodman. This report provides the last five years property, plant & equipment (PP&E;) investment analysis of GoPro, Inc. (GPRO) from 2012 to 2016. They have aligned their product positioning with professional athletes, sports enthusiasts, and anyone that wants to capture themselves performing a physical challenge that they can in turn show to the world. However this threat can quickly evolve stronger, especially coming from consumer electronic giants. It is a handy technique to map out the present Strengths (S), Weakness (W), Opportunities (O) & Threats (T) GoPro, Inc. is facing in its current business environment. The Study of a Major Firm GoPro Marketing Strategy Report. This is not an example of the work written by professional essay writers. GoPro Inc – Strategy, SWOT and Corporate Finance Report, is a source of comprehensive company data and information. Being sold in these extreme sport stores immediately portrays an image of durability by association. Below are recent news articles carefully selected by the authors to help in preparing your case analysis. Strategic Analysis Corporate Strategy Garmin follows a first mover, differentiation strategy. These new companies offer competitive products directly in this category. Consumer agony points linked with the managing, distributing, capturing and relishing attractive content are alleviated by GoPro’s software and hardware solutions. Can part of GoPro’s success be attributed to its marketing strategy? The ‘wearable cameras’ have become increasingly popular, and increased the number of competitors in the space. The market size for the action cameras is likely to increase from 31 billion that was in 2013 to 51 billion till 2015 due to enhanced interest of consumers in these cameras. They feel this culture and experience of its workforce gives them a powerful competitive advantage. GoPro was previously recognized as Woodman Labs, Inc. and transformed its name to GoPro, Inc. in February 2014. The market size of action cameras would increase because of attenuation in the market for traditional cameras. Particular advantage got by GoPro over its competitors is its groundbreaking, exclusive and hero line of capture devices. The technology factors that affect this industry is moderately affected since the commoditization of the action camera market has caught up with GoPro as the leading company. But the success by reduce price of this move is not guaranteed, because the basic Hero is still expensive compared to what competitors are offering. The main purpose cited for this price cut was the less willingness of consumers to pay such huge amounts for action cameras and GoPro’s intention was to upsurge the demand for action cameras by such belligerent price cut two times a year in the same invention (Maan & Tharakan, 2015). The investors though are found to be skittish about the capability of the company to defend against the competition of Samsung that has been continuously upgrading its cameras for high resolution video. explain the company’s business model: focus on how the company creates value. we can write an original essay just for you. The hours of GoPro-related content watched on YouTube in 2016 increased 86% year-over-year to approximately 78 million hours. Save my name, email, and website in this browser for the next time I comment. Growth rate and profits would decelerate a bit causing a slight decrease in the investor’s return. Though GoPro, Inc. is one of the leading brands in the manufacturing of Action Cameras and it offers cameras with high innovation and technology. Moreover, we will look at GoPro’s future strategies and discuss potential challenges it might face with its new marketing strategy. The increased market share of mobile phones is also attracting customers towards action cameras  (Mani, 2014). A company operating in this market can easily exit from the market that’s why exit barrier is low. All rights reserved Gradesfixer ™, The Gopro Brand Analysis [Internet]. • Make sure you carefully read the assignment questions • Read the entire case, jotting down your notes. News; Analysis. The electronic device industry is rapidly evolving, and sensitive to consumer trends. 1. A l’origine, Nick Woodman était un surfeur chevronné. Therefore, the decrease in the price would be desirable for the consumers. (Key updates posted monthly) GoPro Looking for Buyout Options? GoPro (GPRO) is the front runner in the case of market share of i.e. Through heavy investment in research and development they are able to develop new products that users perceive as more valuable and are willing to pay a premium for. The market for this industry is highly competitive. using the SWOT technique by comparing GoPro with its main brand and product competitors. GradesFixer.com uses cookies. GoPro strategy need to focus on the company's future as the initial hype around the company calms. The GoPro marketing strategy team searches the web for the best and coolest videos shot with their cameras. The price of Gopro product is well known for high price compare to other competitors. Please refer to and follow the guidelines contained in this document when analyzing a case study. To maintain its position, GoPro will have to deepen their strategic position through content generation and management and … Furthermore, it also provides a video editing tool known as GoPro Studio that permits the users to generate expert and professional quality videos from the content of their GoPro. Contour Cameras produces cameras that empowers contemporary time explorers, sportsmen and women, voyagers, specialists and amateurs to record their video story of adventure, travel and action (Contour Yahoo Finance, 2015). Comment Wire; Research Wire; Most Read. GoPro has further abridged the amount of HERO 4 recently by $100. We’ve got you covered. To maintain its position, GoPro will have to deepen their strategic position through content generation and management and continuously develop their technology to meet the needs of tomorrow’s generation today. It is because this segment will continue attract more entrant increasing the risk for profitably to the company. Just from $10/Page. Cette marque appartient à la société Woodman Labs, basée à San Mateo en Californie, qui conçoit des caméras. GoPro Inc is carefully reviewing its SWOT analysis and using it to make strategic decisions. Investor Relations. GoPro has successfully carved a new niche in an otherwise mature and competitive industry. Competitive Analysis Of Stihl Chain Essay, Examples of Brands That Use Email Marketing Essay, History And Features Of The Brand Coca-Cola Essay, Emma’s Bakery’s: Ground Brand Analysis Concurrently, GoPro will need to continue investments in research and development and partnerships which will allow GoPro to maintain its position as a leader in next generation technology. However, the company has some disadvantages since some other competitors try to imitate the feature-loaded devices and sell their product with lower price. There is no significant factor for politic and economic in this sector, However for the social factors it make this company business become bright in the recent days or in the future. The consumers of the action camera market are physically active people because they are users of smartphones and action cameras are subset of smartphones. It is with this mindset that they tap into their own employees’ experience, and pain points, when attempting their own self capture pursuits, no matter what they might be. The funds from this business decision were used to expand their marketing campaign and position themselves as the top action camera. GoPro Mission Statement and Analysis . The two potential follow on effects detected because of the price cut are increase in the number of units sold than the planned and decrease in the sales value of the company that has led it with the negative effect. This is supported by current phenomena where more and more people use social media to express their daily life, therefore the need for an action camera is blooming. Are you interested in getting a customized paper? Buyers – Currently GoPro is the leading brand in a nascent industry, allowing them gain more profit for their action cameras. Where many companies are trying to produce that perfect “viral” video that reaches millions of viewers, GoPro “is releasing multiple videos every day after stumbling on a technique that leads to thousands of hours of free publicity a week”. The consumers will tend to buy the product because of decrease in the price of recent products. The most important force to overcome in developing strategy is the threat of new entrants. However, customers in the Americas, by far the company’s biggest market, appeared unwilling to shell out more money on relatively expensive cameras. GoPro’s mission statement is: “To help you capture life as you live it, share the experience and pass on the stoke.” GoPro’s mission statement is as action-packed as its cameras. The main factor behind this downfall is the decreasing demands of consumers for action cameras and increasing demand for the smartphones. Sections. The entry barrier is high due to responsiveness and sensitivity of technological advancement and it is not easy for any of the company to attain the level of competitiveness at which GoPro has been operating. Technology – GoPro has differentiated themselves by having the highest quality video in the most durable body at an accessible price point that blurs the line between amateur and professional video equipment. Moving forward, GoPro is faced with strategic challenges which will be brought by new market entrants, incumbent competitors, and substitute products which may offer new disruptive technologies. Available from: https://gradesfixer.com/free-essay-examples/the-gopro-brand-analysis/, Recieve 100% plagiarism-Free paper just for 4.99$ on email, *Public papers are open and may contain not unique content. For example, GoPro has sole source suppliers among its third party suppliers. In addition, in October 2013, the company acquired General Things Inc., a web development firm, for their software competencies with the intent to accelerate development of these tools. The reason of failure of the recent session of HERO 4 is the snowballing reliance of consumers on the smartphones as compared to the action cameras. How did GoPro benefit from its marketing? GoPro uses the content management strategy and it strives to eradicate the critical point of dealing with content by allowing the customers to share and transfer material from the cameras to a system that competently systematizes the material and enables suitable sharing and editing. GoPro has also stated that it wants to be profitable and is planning to reduce its capital expenditure to below $600 million. Companies with strong expertise in consumer electronics (and large R&D budgets) have the resources available to quickly enter this space (as demonstrated by Sony, Panasonic, JVC and Garmin). The Return on Assets ratio gives an idea as to how efficiently management is at using its … We provide you with original essay samples, perfect formatting and styling. Identify a competitor company that belongs to the same industry and occupies similar position in the industry. Moving forward, GoPro is faced with strategic challenges which will be brought by new market entrants, incumbent competitors, and substitute products which may offer new disruptive technologies. Customers mostly use the smartphone cameras for saving and capturing their activities and memories. The market for these cameras is still in its nascent stage and is gaining a lot of popularity through media, advertising and social networks. Because of the low price point, customers are able to purchase multiple units to gain different perspectives of the event they are trying to capture. GoPro Strategic Capabilities and Competitive Advantage. 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