Strategically relevant factors in GoPro’s macro-environment

Running head: ACCOUNTING CAPSTONE
Accounting Capstone
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1ACCOUNTING CAPSTONE
Table of Contents
Answer to Question 1:................................................................................................................2
Strategically relevant factors in GoPro’s macro-environment:..............................................2
PESTEL analysis of the action camera industry and opportunities available for GoPro:.....2
Answer to Question 2:................................................................................................................4
Business model and competitive strategy of GoPro:.............................................................4
Effectiveness of the adopted approach to sustainable competitive advantage:......................5
Answer to Question 3:................................................................................................................5
Key resources:........................................................................................................................5
Competitive capabilities:........................................................................................................7
Answer to Question 4:................................................................................................................8
Answer to Question 5:................................................................................................................9
Answer to Question 6:..............................................................................................................10
References:...............................................................................................................................11
Appendix:.................................................................................................................................13

2ACCOUNTING CAPSTONE
Answer to Question 1:
Strategically relevant factors in GoPro’s macro-environment:
The macro-environment of GoPro is generally favourable. The most relevant factors
in the macro-environment of the organisation having the ability to affect its strategy, long-
term direction, business model and objectives include socio-cultural forces (extremely
favourable), economic conditions (favourable) and technological factors (a driving force in
the action camera sector). These factors have certain impact on the action camera sector;
however, there is lack of evidence to denote their strategic relevance.
PESTEL analysis of the action camera industry and opportunities available for GoPro:
Political factors:
Due to the lack of information in the case study, it is not possible to suggest whether
the political factors exerted any significant or unique force on the domestic drone or action
camera industry. However, one of the decision-making factors might be tariffs due to the
overseas operations of the organisation (David & David, 2016).
Economic factors:
The economic conditions confronting the action camera sector have been generally
favourable. Despite the fact that there has not been spectacular recovery from the Great
Recession, there has been low unemployment, domestic economic growth and low rates of
interest. These have resulted in healthy market for consumer products like action cameras
(Dobni, Klassen & Sands, 2016). In addition, the long bull market could be estimated to
contribute to discretionary income and consumer confidence, which would have favourable
influence on the drone and action camera industries.

3ACCOUNTING CAPSTONE
Socio-cultural factors:
There have been significant contributions of socio-cultural values to the action camera
sector with rise in the popularity of social media. As the action cameras have small sizes, the
users use the same in a number of situations, which add to the content value to be streamed
and captured or shared on YouTube. The relatively current rise in value emphasised on
personal exposure might have positive effect on demand for camera drones like GoPro’s
Karma.
Technological factors:
New technology introduced in the cameras of the competitors cause the other
organisations to rush to market with their new models that surpass or match the
characteristics on the currently introduced competitors’ models for maintaining market share
(Gamble & Thompson, 2014).
Environmental factors:
No specific data could be identified from the case study regarding any unique impact
of environmental factors on drone and camera industries. However, the industries using
batteries are certain to be confronted with issues like disposal of used batteries and pollution.
Legal/regulatory factors:
These factors are found to be problematic for the drone camera industry. The Federal
Aviation Administration, in October 2015, need drone registrations having weights between
0.55 pounds and 55 pounds within December 2015. It has been analysed from the provided
case that drones have been proliferated along with other issues like terrorism and occasional
encroachment of drones in unsuitable places such as airports and the lawn of the White
House. By taking these aspects into consideration, the industry producers could aim to avoid