GoPro by Malik, Hassan (2017)

GoPro by Malik, Hassan (2017) https://padlet.com/hassan_malik_2017/98pbtb912hxg en-us 2018-11-19 18:03:14 UTC 2024-12-07 04:16:50 UTC hello@padlet.com https://padlet-assets.s3.amazonaws.com/icons/Moderncam.png GoPro hassan_malik_2017 https://padlet.com/hassan_malik_2017/98pbtb912hxg/wish/306050120
GoPro’s success was built on real life experience and lifestyle and capturing it in the moment. This was at the core of the company and attributes to GoPro’s success of selling over 26 million products in more than 100 countries.

However, recently GoPro has not been profitable and this is down to many aspects of the companies operations which are hindering further growth and sales

]]> 2018-11-19 18:12:34 UTC https://padlet.com/hassan_malik_2017/98pbtb912hxg/wish/306050120 COMPETITOR ANALYSIS hassan_malik_2017 https://padlet.com/hassan_malik_2017/98pbtb912hxg/wish/306052441 Over the past year there has been an increase in competitors who have entered the market in various ways. some of which, have entered the market with higher specification action cameras. Some of these brands include Polaroid, LG and TomTom. Their main entry method has been through competitive pricing and even undercutting GoPro significantly. This has affected GoPro and forced them to invest into entering new markets such as the drone market.

In terms of the drone industry, GoPro's initial entry was rocky due to their first drone release having various faults resulting in a mass recall of the product. Furthermore, from being at the forefront of innovation and quality in the action camera industry, this attempted transition caused the brand image to decline particularly due to moving into the industry rather late and having to compete with established brands on both price and quality.

]]> 2018-11-19 18:17:23 UTC https://padlet.com/hassan_malik_2017/98pbtb912hxg/wish/306052441 STP hassan_malik_2017 https://padlet.com/hassan_malik_2017/98pbtb912hxg/wish/306054032 SEGMENTING:
GoPro currently cater to two different markets. The product was originally designed for extreme sports such as surfing making the demographic professional athletes and extreme sports enthusiasts.
The product has now also become relevant for everyday users who blog and post general content online.

TARGETING:

Targeting is one issue which GoPro had faced with their product stream being limited to a very niche audience of athletes and sports enthusiasts.
The CEO, Nick Woodman has described it as a product which compliments your main camera, thereby making it difficult to expand its target new markets with the product.
This may have been additional influence on GoPro to expand into creating drones/UAVs, due to the market becoming saturated with other competition taking market share through low cost entry strategies.

POSITIONING:

Considering the drone market which GoPro has transitioned into along with their current product lines they have positioned themselves well. Particularly by geographically positioning their headquarters in California's Silicon Valley. They are also considered a must have for people recording extreme sports or any activity they are carrying out. Furthermore,

Amongst other camcorders it has positioned itself as an action camera that can capture intense video in the best quality the market has seen. ]]> 2018-11-19 18:20:11 UTC https://padlet.com/hassan_malik_2017/98pbtb912hxg/wish/306054032 Industry Lifecycle hassan_malik_2017 https://padlet.com/hassan_malik_2017/98pbtb912hxg/wish/306055530 The drone market is speculated to grow steadily in the coming years in both commercial and consumer markets as well as the military. Goldman Sachs estimated to drone industry to reach a total market size of $100 billion between 2017 and 2020. Although 70% of this figure pertains to the military sector of the drone industry, the commercial is set to reach $13 billion by 2020.
So overall the industry is still in the growth stage and is not peaking just yet therefore, GoPro still has time to alter their strategy to enter this market more effectively. Particularly as the consumer market is still in a very mature stage compared to other consumer electronic markets.

]]> 2018-11-19 18:23:10 UTC https://padlet.com/hassan_malik_2017/98pbtb912hxg/wish/306055530 RECOMMENDATIONS hassan_malik_2017 https://padlet.com/hassan_malik_2017/98pbtb912hxg/wish/306056482 Our first recommendation would be to rethink the market GoPro want to enter. Currently they specialise in consumer electronics with their range of action cameras and accessories however, based on market size it may be more profitable for GoPro to seek military funding and contracts to fund research and development for the future of drones as this will allow them to gain a competitive advantage as well as develop their military relationship

On the other hand, the commercial industry is set to drive the industry forward the most, and is in a very premature stage currently and entry barriers are somewhat lower in comparison to military markets. This is mainly due to opportunity creation within business and to save costs.

For example, they could

install their camera into a phone]]> 2018-11-19 18:25:06 UTC https://padlet.com/hassan_malik_2017/98pbtb912hxg/wish/306056482 FIRM RECOMMENDATION. hassan_malik_2017 https://padlet.com/hassan_malik_2017/98pbtb912hxg/wish/306056580 Our firm recommendation as a group is to enter the commercial market mainly due to this market being the most lucrative in the drone industry particularly as research shows it will grow the quickest and push the industry forward to reach it's expected growth.

They can do this by teaming up with other large corporations and refining processes using their drone technology. For example, gaining a contract from Amazon to deliver products using drones to consumers houses without the need for delivery drivers and wasted fuel and resources. This is more effective as opposed to entering the consumer electronics market as this has failed and it puts GoPro at the forefront of the industry once again. ]]> 2018-11-19 18:25:15 UTC https://padlet.com/hassan_malik_2017/98pbtb912hxg/wish/306056580 Go Pro in Drone Market https://padlet.com/hassan_malik_2017/98pbtb912hxg/wish/306502085 It is bad for Go Pro to enter in the drone market because they are already in loss. They made the wrong decision and diversified their portfolio. In addition to this, they entered into the market while another company(DJI) had 70% share capture in the market.

]]> 2018-11-20 19:19:27 UTC https://padlet.com/hassan_malik_2017/98pbtb912hxg/wish/306502085 Strength： yeyun0513 https://padlet.com/hassan_malik_2017/98pbtb912hxg/wish/306503716

The main competitive advantage in its unique business model which allows it to facilitate high brand equity, crowd source promotional efforts and gain a dominant market share. This is due to its ability to change the way “consumers capture, manage, and share engaging content” (MarketLine, 2016) . In other words, GoPro is selling an experience rather than a product as stated.

]]> 2018-11-20 19:23:04 UTC https://padlet.com/hassan_malik_2017/98pbtb912hxg/wish/306503716 Weakness yeyun0513 https://padlet.com/hassan_malik_2017/98pbtb912hxg/wish/306505588

The main issue that GoPro is currently facing is the recovery from a 7% layoff in January due to low sales (Mac, 2016) and a 80% fall in its stocks back in February 2016 (Bryan, 2016). The high pricing strategy could be a hindrance as GoPro is unable to sell enough of the products and compete with the lower priced brands. In addition battery is lower quality than other competitor. Also, Chinese manufacture DJI gain over 70% market share in drone market, it cause Gopro is hard to attract more consumer to buy their products.

]]> 2018-11-20 19:27:26 UTC https://padlet.com/hassan_malik_2017/98pbtb912hxg/wish/306505588 Opportunities yeyun0513 https://padlet.com/hassan_malik_2017/98pbtb912hxg/wish/306507499 Opportunities

The action camera market it is growing and according to industry estimates, expected to grow at a compound annual growth rate at 23% until 2019 (MarketLine, 2016). For GoPro, which has 47.5% of the market, it provides a potential advantage over its competitors in terms of growth opportunities and revenues. In addition, social network e.g Instagram and Twitter, people rely on action camera to post their pictures to social network.

]]> 2018-11-20 19:31:56 UTC https://padlet.com/hassan_malik_2017/98pbtb912hxg/wish/306507499 Threats yeyun0513 https://padlet.com/hassan_malik_2017/98pbtb912hxg/wish/306509902

one of threats is competition ,it can be divided by price competition and products competition. In drone market there are many company provide better products and price than Gopro such as Samsung and LG. Samsung Gear 360 VR is priced at $361 and the LG 360 Cam at $199 (Hoium, 2017). In addition gopro has less market share Between 2011 and 2013, DJI the largest manufacturer of consumer drones in the world, saw their annual revenue increasing by almost 3,000 percent and the market has been expanding ever since. The commercial market for drones was already estimated at $2 billion in 2016, with growth expected to boom by more than 6,000 percent in the next few years, generating an expected market size of $127 billion by 2020 (Moskwa, 2016; Tractica, 2015).

]]> 2018-11-20 19:38:53 UTC https://padlet.com/hassan_malik_2017/98pbtb912hxg/wish/306509902 Refrences hassan_malik_2017 https://padlet.com/hassan_malik_2017/98pbtb912hxg/wish/306833643 2018-11-21 19:25:13 UTC https://padlet.com/hassan_malik_2017/98pbtb912hxg/wish/306833643 SWOT yeyun0513 https://padlet.com/hassan_malik_2017/98pbtb912hxg/wish/306840822 2018-11-21 20:02:59 UTC https://padlet.com/hassan_malik_2017/98pbtb912hxg/wish/306840822