Entrepreneurship: The Dark Side and Success Factors

This report explores the dark side of entrepreneurship and the key factors that contribute to success. It analyzes the case of GoPro and its marketing strategies. It also identifies threats facing GoPro and provides recommendations to overcome them.

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Executive Summary
Entrepreneurship is arguably a debatable concept in regards to whether it is inborn or
learned. Although it is not clear which of the two perspectives is true, it is apparent that the
personality trait of an entrepreneur has significant impacts on success. It is the ‘dark side’ of
entrepreneurship that defines whether success will be achieved or not. In this report, the case of
GoPro is analyzed and its key marketing strategies that have created a competitive strategy are
identified. Furthermore, threats such as competition, technology changes and price fluctuations
in the market are also assessed. Recommendations on how to handle each of these issues are also
presented. In general, the analysis of GoPro shows that it is still in the right track despite the
challenges in the market. This success is however owed to the resilience and determination of the
entrepreneur Nick Woodman.
Part A.
Introduction
In most cases, becoming a successful entrepreneur is determined by the entrepreneurial
personality traits of a person. The zeal and resilience to compete in the market despite challenges
and threats of failure shape how one decided to think. For this case study, GoPro succeeded
because of the dedication of Woodman in his quest to provide consumers with an opportunity to
capture, share and view content in a more convenient way (Mac, 2013). This report highlights
several issues based on the GoPro case study and about existing theories and practice.
Traits Associated with the Dark Side of Entrepreneurship
While entrepreneurs make decisions to either venture in a particular market or not, their
decisions are guided by three primary ‘dark side’ entrepreneurial traits. First, the need for control

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of the product design and the market can become an obsession. In some cases, entrepreneurs
become filled with fantasies and yearn for powers, influence, and authority, yet they feel helpless
in themselves (Miller, 2015). Just like Woodman, he envisioned to design the best GoPro camera
but was handling all the tasks by himself, ranging from, research and development, design, sales
to marketing. With such a trait, some of the entrepreneurs fail to realize their actual potential.
Second, the dark side of entrepreneurs is characterized by a sense of distrust. Just like the
desire for control, proclivity towards suspicion defines most entrepreneurs. In essence, most
entrepreneurs live in fear and usually prepare in advance just in case anything happens. Although
it is considered a dark side of entrepreneurship, its impacts on success have been enormous.
Ideally, most businesspersons, take mitigation plans/strategies in advance due to mistrust of the
environment around them (Eberhart & Eesley, 2018). Such was a step take by Woodman during
the global financial crisis by refusing to sell off the entity but instead took a risk that made the
business grow despite the economic downturn (Mac, 2013).
Lastly, external optimism also sums up as one of the dark side entrepreneurship traits.
Whenever an entrepreneur becomes so optimistic of success and desire for applause sets in, it
possible for them to start using fantasies in business. Under such circumstances, trends in
business, reports, and facts are all ignored as optimism inclines the entrepreneur to think
everything will be just fine (Miller, 2015). In the process, the business can take a downturn and
run into huge losses — only rare cases of external optimism in entrepreneurship yield positive
results.
Is What We Hear About Entrepreneurship Wrong?
Different scholars can have different opinions about whether entrepreneurship is natural
talent or a learned skill. However, one thing remains constant, without background knowledge

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about business an entrepreneur is deemed to fail in executing his/her business. Most of what is
said about entrepreneurship as being magical, genetically inborn or mysterious are all
misconceptions. It takes discipline and self-dedication to the course of the business for a venture
to succeed. Notably, social entrepreneurship requires one to be highly skilled in interacting with
people from different races (Dacin, Dacin, and Tracey, 2011). Such values are mostly learned
than being inborn in a person.
Based on the case study of GoPro, various elements thatrefute that claim and proves that
discipline is key in entrepreneurship if success is to be realized. First, the founder of GoPro,
Woodman, started with just an idea and with the little education he got, his discipline guided him
to establishing the company. In this case, it is evident that nothing magical or mysterious
happened to make the entrepreneurship success of Woodman a reality. In real life, some big
businesses like Microsoft were founded by school dropouts. However, the successfulness of their
entrepreneurial activities has largely leveraged on learned skills in the courses they took as well
as experience in life. Notably, most entrepreneurs leverage on reflective observation and abstract
conceptualization to come up with feasible ideas of running their businesses (Pena, 2016).
Secondly, Woodman first studied the market sufficiently to get a clear picture of what
needs to be done, and all the avenues available to introduce a unique product in the market.
Particularly his trips to Australia and Indonesia were just a few ways of learning how best he can
integrate the skills he possessed, those he leaned and the market situation. Under this approach, it
is clear that the idea of entrepreneurship is learned and not genetically transferred from parents to
children. The discipline displayed by Woodman was sufficient to keep the business growing and
to expand. Theoretically, entrepreneurship is supposed to be both at the core of the heart and
mind, but all decisions have to be based on known facts which cannot be naturally known to

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everyone (Welter, 2011). Therefore, it is sufficient to conclude that what is said about
entrepreneurship as being mysterious and magical is wrong. Instead, all the entrepreneurial skills
are learned and blended with the personality of a person to bring out the best in them.
Part B: Marketing and Strategic Planning
GoPro’s Competitive Advantage
GoPro has in the recent past redefined how marketing is undertaken to create a
competitive advantage that is not only strong but also sustainable. Over the years since 2014, the
entity has managed to effectively use the blue ocean strategy to market their brand in the market.
Notably, cameras in the sporting field have been in high demand. However, the GoPro model
went ahead and created its market niche. The surfing game cameras and launch of KARMA
drone and virtual reality cameras created a significant market advantage for the company over
others. This move by the company not only allowed it to grow that attracted more surfers to
purchasing the GoPro customers, hence increasing the brand awareness and subsequently
creating a competitive advantage. In theory, this kind of blue ocean strategy employed by GoPro
has the capability of creating an entirely new niche market for a business (Buisson and
Silberzahn, 2010). In the same context, the popularity of GoPro in recent years has been created
by its resilience in using the blue ocean strategy in its marketing approach.
After Nick Woodman studied the market more closely, the decision to use consumer-
driven marketing was initialized. Under this marketing process, the company relied on existing
consumers to pass across their marketing messages to the public. Initially, the company had no
known social media accounts, but this marketing drive forced it to open a YouTube channel. As
a result, the surfing recording was shared through the platform. This passed a significant message
to the potential customers who became more interested in GoPro products. Although consumer-

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driven marketing may not always turn out positive in some organization, this approach by GoPro
became a sensation, and everyone who saw a shot posted on social media would term it as a
GoPro shot (Mac, 2013). This, in theory, implies that the marketing process allowed a brand-
consumer interaction to develop even further. It eventually provided the company with a
strategic advantage that saw it overtake Sony in Best Buys sales despite it being an already
established brand in the market (Mac, 2013). In theory, consumer-brand interaction allows
greater satisfaction which in most cases leads to customer loyalty (Rohm, Kaltcheva and Milne,
2013). With this approach in marketing, GoPro has managed to stay ahead of others in the
market.
As a mode of capturing the attention of the consumers in the market even at future times,
GoPro is continuously redesigning and innovating new models of their products. The marketing
message behind this innovation is perceived to be tapping all the potential consumers as the
products from the company are up-to-date and potentially creating a competitive advantage for
the company. Furthermore, the company has embraced social entrepreneurship as a way of
involving the consumers in their marketing processes. According to the case study, GoPro
products became highly demanded after videos of people surfing surfaced on YouTube. In
essence, a social entrepreneurship approach as depicted by the case of GoPro allows consumers
to have a sense of belonging, creating a strong association with the brand (Dacin, Dacin, and
Tracey, 2011). Ideally, this has been among the key areas that the company has leveraged on to
create a competitive advantage in the market.
Although the competitors in the market dealing with action cameras are many, GoPro
through its different marketing processes has managed to create competitive advantages that
have seen the company continue to grow. Having started at a rental house and with the zeal to

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accomplish a vision, Woodman has leveraged on all available materials and opportunities to turn
the company into a multi-million firm that is posing a significant threat to brand competitors
such as Sony and Garmin, generic competitors such as smartphones, Nikon, Olympus among
other product competitors.
Threats Facing GoPro
Since its establishment in 2002, GoPro has grown to become a multiregional firm with
the best action cameras. However, as the market evolves, several threats emerge and threaten to
drive the company out of business. First, the growing popularity of smartphones with even better
resolutions is driving GoPro out of business. Notably, the millennial are now considering an all
in one smartphone rather than standalone cameras (Stock, 2019). In reality, the action cameras
are slowly being replaced and prompt measures needed to be taken by the company to avoid any
further drops in market shares. In a move to combat this threat, the company should diversify its
operation to increase its chances of survival in the market despite the substitution effect.
Additionally, the company can decide to launch new cameras that have the potential of being
synchronized with smartphones. With such an innovation, the threat will be converted to an
opportunity of the company to utilize the growing penetration of smartphones across the world.
Initially, GoPro enjoyed a niche market it had created. This is, however, taking a new
shape as technology advances. More sophisticated devices are being made, and the niche market
is becoming disoriented. All the upcoming firms are struggling to get hold of the market.
Essentially, when competition stiffens, the revenues collected by companies start to reduce and if
not mitigated it can cripple the operations of the business (Gabaix et al., 2016). Although
competition can still benefit a company that conquers the others, it is still valuable to take
necessary precautions. Under this threat, it is recommended that the company should intensify its

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marketing approaches to reach out to as many consumers as possible. Furthermore, the company
should consider acquiring other small firms to position itself in the market strategically. This two
steps will not only ensure that the niche market is preserved but also completely occupied by its
subsidiaries. In the long run, the company will continue recording high revenues from the
increasing demand for new cameras (CNBC, 2019).
Lastly, unstable prices in the market are deemed to scare away customers to another
competitor. The new firms entering the market are creating a dynamic wave that is distorting the
company’s focus to provide consumers with an exceptional device. Notably, young companies
entering the market are offering almost the same products as GoPro as slightly lower prices
(Stock, 2019). This threat is not only scaring away customers but also investors who perceive
that the companies will one day become less profitable due to the intense competition. However,
the company can still deal with this situation in different ways. First, GoPro will need to initiate
product differentiation. This can involve redesigning their products to make them less immutable
and unique. Second, it is recommended that the firm should improve its promotion strategies to
ensure that there is customer satisfaction, retention and potentially attracting others. With these
two recommendations, the company can manage to stay afloat and with increasing revenues
despite the unhealthy competition posed by companies having cheaper products in the market.
Conclusion
Despite all the obstacles Woodman is facing in trying to keep GoPro on track, the
trajectory remains in the positive direction and up. This achievement has been occasioned by the
resilience of the founder in trying to provide consumers better action cameras than any other
firm. However, threats of competition, product imitation and uncontrolled prices in the market is
slowly diverting the traffic of customers from GoPro. Nevertheless, by concentrating on product

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differentiation, intensified marketing, and continuous innovation, the company can remain
sustainable in the market even though the threat of smartphones is creating in the market.

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