Entrepreneurship and Marketing Strategies of GoPro

This report focuses on the success story of Nick Woodman, the founder of GoPro, and explores different aspects of entrepreneurship and marketing strategies used by the company. It discusses the traits of successful entrepreneurs, competitive advantages gained by GoPro through innovative marketing techniques, and future threats and recommendations for the company. The report also includes theories like theory of planned behavior and elaboration likelihood model.

ENTREPRENEURSHIP

Executive summary
This report includes different aspects of entrepreneurship aligning with the success story of
Nick Woodman. He is a 37 years old entrepreneur and the founder of GoPro, who has
established his name through his invention of GoPro camera. While returning from his five
months surfing trip, the idea of GoPro was there with him and he has transformed this idea
into practice with efficiency. This report has mentioned that entrepreneurship cannot be
learned without effect of special genes. Woodman was supremely confident and dedicated at
the early age of his life. He has made the GoPro recognizable with this constant effort. The
innovative strategies and effective marketing techniques are helping this firm to obtain
maximum competitive advantages. Certain recommendations have been made in this report to
help GoPro to explore in future. At the end of this report, conclusion part has been drawn
from overall discussion. Different theories like theory of planned behavior, elaboration
likelihood models are used in this assignment.
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Table of Contents
Introduction................................................................................................................................4
Discussion..................................................................................................................................4
Part A......................................................................................................................................4
Answer to question 1..........................................................................................................4
Answer to question 2..........................................................................................................4
Part B......................................................................................................................................5
Answer to question 1..........................................................................................................5
Answer to question 2..........................................................................................................6
Recommendation........................................................................................................................7
Conclusion..................................................................................................................................8
Reference list..............................................................................................................................9
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Introduction
This report is focusing on entrepreneurship and marketing and strategic planning of GoPro.
Nick Woodman is a 37 years old entrepreneur, who received fame by inventing GoPro
camera. He got the idea of GoPro camera during return journey of a five months trip.
Through innovation and adopting efficient marketing strategies has helped him to gain
success.
Discussion
Part A
Answer to question 1
Three major traits of dark side of entrepreneurship
Being a successful entrepreneur does not allow people to think positively in all the difficult
situations of their journey. From the case study, it can be seen that Woodman was not
confident enough regarding success of his idea. Lack of confidence can be considered as an
element of dark side of entrepreneurship. As mentioned by Bouncken et al. (2018), this
aspect may prevent individual to provide their best effort to their project and this trait is not at
all desirable. On another hand, fear of failure is another trait of dark entrepreneurship.
Woodman has set four years of time limit for himself to prove his talent. He has decided that
after four years if he fails to achieve success, he would definitely give up. This common trait
is found in new entrepreneurs as they invest time and money in completely new approach of
them. Workaholic tendency is considered as one of the main traits of dark side of
entrepreneurship. According to Tomaszewski (2018), people often compromise their personal
life to achieve business goals. It can be seen that Woodman has checked out from his normal
life to focus on development of GoPro camera.
Answer to question 2
The statement of Peter Drucker is incorrect as entrepreneurs carry specific genes that lead
them to get success. In the present case study, it can be observed that Woodman was
confident from his early days of life. His father has brokered the purchase of taco bell by
Pepsi. Woodman always had faith in his ability. He has the potential to challenge existing
system, which is a great quality of an entrepreneur. This case study postulates about his
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teacher's voice regarding his confidence level. It has been mentioned that he had once
challenged his biology teacher that he is able to run a mile within just 6 minutes and he had
done that. According to Mazzarol and Reboud (2017), people learn throughout their lives and
develop skills of entrepreneurship. However, only learning cannot be processed to become a
successful entrepreneur. It must be in their genes to learn everything, required for becoming
entrepreneur.
Woodman believes in swimming against the tide and this aspect has helped him to face risks
to achieve bigger success. He had never put the effort into getting grades as he was
passionate about surfing. It can be seen in the case study that he has admitted that he has got
the idea of making GoPro as he was following his passion for surfing. No one has taught him
the process of becoming a successful entrepreneur. He has made it of his own and he is proud
of his achievement. These are the evidence that is mentioned in the provided case study that
refutes the statement of Peter Drucker. As stated by Frederick et al. (2018), entrepreneurs are
born with genes that carry traits of entrepreneurs. Those genes allow them to run behind
success and learn new things throughout their lives to develop required professional skills.
Hence, it can be stated that the statement of Drucker is not purely true regarding
entrepreneurs.
Part B
Answer to question 1
Competitive advantages
In the case study, it is mentioned that GoPro has used social media in 2014, for marketing
activities. They have relied on the content that customers have created with GoPro device.
Marketing activities were done mainly through twitter and youtube channel that has helped
them to create a buzz among customers regarding the product. Since, publication of this case
study in 2014, GoPro has gained competitive advantage through different marketing
processes. They have used a technique of marketing that is based on the nature of their
association with consumers by promotions (Competitiveadvantageanalysis.com, 2018). This
has influenced their customers as they feel like a part of this group. Theory of planned
behavior can be related to this action of this firm. As opined by Hjorth et al. (2015), planned
behavior theory states that marketing process can be fixed by predicting behavior of
customers with high accuracy. This theory helps a firm to gain concepts about target
audience. Market share of GoPro is 21.5% in U.S and they are ahead of their competitors.
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GoPro has continuously attempted to enhance and refresh its marketing ideas that are another
main reason for competitive success. In 2016, they have also started television ads, which are
considered as a traditional method of marketing. It is not a new idea but as on that year
company revenue was down by 40% and shares by 34%, hence they have adopted this
marketing idea (Fastcompany.com, 2016). This method of marketing can help this company
to step into the mainstream and gain other customers. Colorful advertisement can grow needs
among customers and this can impact on revenue rate of this firm. Moreover, association with
all segments of customers can increase as the social media channel is mostly accessed by
youths. According to elaboration likelihood model, there are two ways of persuasion. One is
through elaboration and another by the help of constant association (Pisani and van den
Dolder, 2018). The second route is applied in this strategy that can increase the association of
GoPro and its products with different segments of customers and grow needs in them.
In 2017-18, 60% of GoPro’s revenue came from European markets and in Asia Pacific
regions market share of GoPro increased to 45% (Marketrealist.com, 2018). They have
gained this competitive advantage through the help of innovative marketing strategies. They
have adopted a multichannel strategy, which includes social media, print and electronic
media and tradeshows. This firm has also partnered with different athletes for endorsements
and hired social media influencers. They have also become part of top events like MotoGP.
Retail distribution of products is the main cause of gaining competitive advantage as they
have partnered with big distributors like Walmart and Amazon (Marketrealist.com, 2018).
These strategies have helped to increase their market share in Asia-pacific and European
regions. This can be described well by network theory, which states that success of a business
depends on relationship building. In the case study, it is mentioned that GoPro has previously
focused on building relationships with surf shops and others. They continued this tradition of
building relationships, which has helped them to gain competitive advantage.
Answer to question 2
Future threats
In 2019 and beyond, GoPro is likely to face different threats from market that can impact on
their business. In the case study, market competition and threat from competitors is
highlighted during the year of 2014. In 2019 and beyond this treat has increased to a greater
extent. In 2019, DJI, a Chinese company has launched action camera that can greater features
than GoPro (Bbc.com, 2019). Osmo action is their model that has the same feature as GoPro
that is posing threat to this market leader. Other Chinese firms like Xiaomi has also launched
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action camera that posed serious market threat to this firm. The general theory of market
competition may be considered to understand this perspective. This theory has shed light on
the relationship between profit generation by organizations and market share. Evaluation of
this theory helps to understand relation between market competition and profit generation
based on all industrial aspects. Moreover, GoPro’s product life cycle has already reached its
maturity stage. Product life cycle theory has been developed by Raymond Vernon and thus
theory has mentioned about four stages of product life cycle. This theory has postulated that
products become well-known and accepted by customers in the stage of maturity. It is the
time when GoPro needs to think about innovative modification in their product to attract
maximum customers towards their business. Hence, it is essential for GoPro to adopt new
strategies and divers their products to eliminate this threat.
On another hand, seasonal fluctuations are another essential threat that is combined with
market saturation. The business cycle theory consists of five different stages of business such
as Peak, expansion, trough, recession, and recovery. It is important to apply business cycle
theory with seasonal fluctuation while developing strategies for growth. GoPro needs to
modify their business strategies based on market demand of their cameras in different time
period. As stated by Shannon (2016), action camera industry mainly targets high and middle-
class segments of customers who are sport and fun loving. Hence, fluctuations in sales rate
occur due to higher dependence on specific segments of customers. In addition, threat is also
posted from design of the camera. Lack of updates and heating of camera can impact on
brand image of this firm.
It can be recommended to GoPro that they need to update their design with no flaws and at
cheaper prices. This can help them to eliminate the risk of market competition and threat of
problem in design. Moreover, need to add new features in their current products can help to
increase life cycle of this product. In addition, market competition can be avoided by
bringing more innovation in technology. As stated by Frederick et al. (2016), innovative
products help in gaining attention of potential customers and increase their satisfaction rate.
Recommendation
It can be recommended to GoPro to improve their marketing strategy in a proper way.
Customized marketing strategy can be recommended for this firm, which helps a firm to
build strong relationship with customers. Marketing through SMS, email and WhatsApp can
help GoPro to maintain healthy relationship and retention of customers can increase. They
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also need to collect feedback from customers and update their products to gain customer
satisfaction. Partnership formation with distribution firms in Asia and Europe can help
GoPro to gain competitive advantage. Intense distribution of products helps in gaining new
customers. As opined by Bouncken et al. (2018), partnership helps in increasing reach of a
business organization to new regions.
Upgradation of products is another recommendation that can help this firm to gain
competitive advantage. Expanding storage facilities and adding new improved sensors can
help to eliminate flaws from this product and gain greater rate of customer satisfaction.
Conclusion
After evaluating the entire discussion of this report, it is concluded that Woodman has
experienced the dark side of entrepreneurship and have achieved success through continuous
effort. Innovativeness in operational process and effective marketing ideas of GoPro are
helping them to achieve competitive advantages. Different recommendations are described,
which help GoPro in future may progress.
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Reference list
Bbc.com (2019), Threat to go pro, available at https://www.bbc.com/news/technology-
48279408[Accessed on 22nd May 2019]
Bouncken, R.B., Aslam, M.M. and Reuschl, A.J., 2018. The dark side of entrepreneurship in
coworking-spaces. In Inside the Mind of the Entrepreneur pp. 135-147
Competitiveadvantageanalysis.com (2018), Competitive advantage, available at
https://www.competitiveadvantageanalysis.com/competitive-advantage-of-gopro/ [Accessed
on 22nd may 2019]
Fastcompany.com (2016), Tv Ads, available at https://www.fastcompany.com/3065745/why-
gopro-changed-its-marketing-strategy-to-go-beyond-the-action [Accessed on 22nd May 2019]
Frederick, H., O'Connor, A., and Kuratko, D.F., 2018. Entrepreneurship. Cengage AU.
Hjorth, D., Holt, R. and Steyaert, C., 2015. Entrepreneurship and process
studies. International Small Business Journal, 33(6), pp.599-611.
Marketrealist.com (2018), Marketing of GoPro, available at
https://marketrealist.com/2018/06/a-look-at-gopros-marketing-and-distribution-strategy/
[Accessed on 22nd May 2019]
Mazzarol, T.W., and Reboud, S., 2017. Entrepreneurship and innovation. Tilde Publishing
and Distribution.
Pisani, N. and van den Dolder, P., 2018. GoPro, Inc.: Will Entry into the Drone Market Help
its Comeback?. SAGE Publications: SAGE Business Cases Originals.
Pryor, C., Webb, J.W., Ireland, R.D. and Ketchen, Jr, D.J., 2016. Toward an integration of
the behavioral and cognitive influences on the entrepreneurship process. Strategic
Entrepreneurship Journal, 10(1), pp.21-42.
Shannon, W., 2016. The Role of Disruptive Innovation, Personality Characteristics, and
Business Models on Entrepreneurial Success. pp. 15-19
Tomaszewski, M., 2018. Corruption-A Dark Side of Entrepreneurship. Corruption and
Innovations. Prague Economic Papers, 27(3), pp.251-269.
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