Strategic Management- GoPro

This report discusses the background, issues, and recommendations for GoPro, a leading company in the technology, videography, and consumer electronics industry. It covers topics such as privacy legislation, technological advances, connected devices, adjacent products/adjacent markets, and more. The report suggests steps for the company to cope up with the difficulties related to product performance and stay competitive in the market.

RUNNING HEAD: STRATEGIC MANAGEMENT
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Strategic Management- GoPro

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Executive summary
GoPro is one of the leading companies in the technology, videography, and consumer
electronics industry. This corporation was established by Nick Woodman in the year 2002,
which was a skinner enthusiast, in search of an improved way to film the suffering of self and
friends too. Some of the sports stars are using the cameras of the GoPro for example, GoPro
Hero models, GoPro Fusion, etc. Its activities include developing the products by indulging
with the customers and by sharing their footage, GoPro has enabled some of the breath-taking
footage on the internet. From the starting, the company has faced various issues related to
their product performance, but in the end, the company manages itself to become the leader
in the market.
In the year 2016, the business publicised that it was lying off an extra 200 employees
to decrease the cost. The business brings its workforce just to the number of 100 by laying off
more employees in March 2017, and January 2018. At the peak time of the company, the
share of the business was valued at $86, but on 26th March 2018, the value comes to $4.81
(Appendix 1). This paper further gives the theoretical knowledge about the company and
their issues as well.

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Table of Contents
Introduction................................................................................................................................3
Aim.............................................................................................................................................4
Discussion..................................................................................................................................4
Privacy legislation..................................................................................................................5
Technological advances..........................................................................................................5
Connected devices..................................................................................................................6
Battery life..........................................................................................................................7
Sharing................................................................................................................................7
No zoom & Responsiveness...............................................................................................7
Control and color balances.................................................................................................7
Adjacent products/adjacent markets.......................................................................................8
Conclusion..................................................................................................................................9
Recommendations....................................................................................................................10
Bibliography.............................................................................................................................12

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Introduction
This report will give the academic knowledge about the GoPro Company (which is
marketed as the GoPro but sometimes is elegant as the GoPRO). GoPro is an American
technology, which is originated by Nick Woodman in the year 2002. This corporation was
established as the Woodman Labs, Inc. whose main aim was to emphasize on the linked
sports genre, initially emerging the line of the actions cameras, and afterward, it started to
develop the video editing software. It is the kind of the public company, traded as the
NASDAQ: GPRO (Class A) Russell 2000 Component (Mac, 2013).
It releases a quad copter, Karma in October 2016, but in the year 2018, the karma was
finished. After that, the business appointed JPMorgan Chase to chase the option of the
selling. However, the CEO denied pursuing this after a month later. Therefore, the
organization continues its business in the area of the actions cameras only. Shares of GoPro
Inc. were declining with a percentage of 95% from the year 2014. This was reflecting as one
of the most unsatisfactory news for business on the stock market over the past decades. The
organization suffered many issues and resulted in everything failed from the inventory
missteps to the failed product that has led to millions of losses over the previous three
decades (GoPro, 2019).
In the year 2014, this organization made its public debut as the major consumer
electronics IPO in approx. 20 years. After the money raised in the IPO, and solidifying the
place as a popular product segment. However, after the IPO of the organization, it was
having the tumultuous time. The companies performed declined after its stock briefly pointed
in mid – 2015 and then flatlined through 2017. After its IPO, the company was aiming to
develop the successful camera seller for which the company on-going to launch an Xbox Live

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channel and made a contract with Virgin America for in-air performing to contract in the
competitive market (Lee, 2017).
Aim
This report aims to offer knowledge about the company’s background, the difficulties
associated with the company’s environment, various recommendations which will be going to
assist the company to deal/cope up with various problems in the future. This report will be
emphasizing on the problems of the company, which are related to the adjacent
products/adjacent markets, technological advances, and connected devices, which hinder the
growth of the company.
Discussion
While execution in the market, GoPro faces numerous problems, which hinder the
growth of the organization in the market likened to the competitors. Despite the sustained
dedication among the adrenaline junkies and adventure athletes, GoPro camera maker is not
doing so hot. On Monday, the organization stock fell from the rate of the 23 per cent before
halting after it long-established plans to lay off at least 250 employees, which amounts to be
its 20% of the workforce, and the company shuttered its drone division, citing future rule and
intense competition, and ending sales of its Karma camera drone (Evers, 2015).
The mangers of GoPro Inc. use Porter’s five forces, which helps them in developing
the strategic position of the company in the photographic equipment industry and materials
industry. It also supports exploring profitable opportunities in the whole sector of consumer
goods.

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(Source: By Author)
The areas that will be addressed in this report will be:
1. Privacy legislation
THREAT OF NEW
ENTRANTS
Low entery barriers
Growing demand
Genric competition
already having the
technology
RIVALIRY IN THE
CAMERA INDUSTRY
Competitive camers industry
GoPro's niche market is
devloping
BARGAINING POWER
OF THE CUSTOMERS
Low bargaing power
because of the end-
user demand and
low direct
subsitution
BARGAINING POWER OF
SUPPLIERS
Low bargaing powers because
of the large numvers of the
providers
THREAT OF
SUBSTITUTING
PORDUCT
Many competiting
product can provide
the same benefits.

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2. Technological advances
3. Connected devices
4. Adjacent products/adjacent markets
Privacy legislation
It has been abridged that the poor choices of the passwords can result in the breach of
privacy. As the scholars revealed, how easy it might be for hackers to interrupt the privacy
and password in the GoPro cameras and use them to secretly a spy. This perhaps in the GoPro
arises because various users, mainly they organize the camera situation from the mobile
phone app. Individual do not make strong password due to which it becomes very easy for
the hackers to hack the password of the GoPro’s and if the hacker hacks the password then he
will be able to access the videos as well as recordings (Wei, 2015).
It can be summarized as the cherry on the pie, a hacker can perform all this function
even though the GoPro camera is switched off. Various privacy vulnerabilities have been
originated in the GoPro cameras, and Yelp’s “activities feed.” It has been researched that, a
security firm has warned security settings are being too easy for the case of the
cybercriminals to circumvent (Mamiit, 2015).
As per the test partners, hackers can easily access the GoPro’s Hero4 camera, after
being appeared to be turned off- and keep watch on the videos. According to the Pen Test
Partner’s Ken Munro, wireless connectivity method can be left even when the power button
is turned off. These are the main three points for the privacy legislation.
Technological advances
In today’s technological environment, many companies come and many companies
go. Many of them exit the market as they climbed the top of the ladder. GoPro is one of the

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success stories in terms of technological advances. Despite the strong foot in the market, this
company has to face various problems linked to the software and has to change its ways of
working (Wells & Nicas, 2016).
There are issues related to technology such as:
 The company failed to maintain essential product technology
 Product issue arises due to the missing in the development discipline
 Competent competitor's boxed in the GoPro’s future
 And, the high MSRP requires a customer's perception of value.
The product failure of the product is a best indication of the testing and beta testing
failures. These are the indication that the testing programs are not good all over or release
pressure escaped these tested from being accomplished (Mitchell, 2018).
The second problem linked with the organization is profound in product growth is a
shortcut in product growth. This is one of the signs of a disadvantage for the GoPro.
GoPro was not capable to fix the software failure for many years. One of the most
popular software failure and long-running battling was that GoPro had with SD card
provision software. The company was not highlighting their emphasis on the hardware (Paro,
2015).
Connected devices
GoPro Inc. has a wide issues with the smartphone. The action camera creator burst
onto the scene 10 years back with little, light cameras that surfers, skiers, and other
extraordinary games contestants.

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Battery life
This was one of the main problems with GoPro’s. Even the usual smartphone has
more life battery as compared to the GoPro’s. This is a biggie. Maximum of the time
individual is run out of juice well earlier a period is obtainable smooth with the traditional
shooting (VeedYou, 2018).
Sharing
GoPro has put a lot of effort in this phrase. Earlier it was not easier to share the shots,
but now it is considerably easier to share the footage and snaps from a GoPro. GoPro has
enhanced them in this but there is still some problem with the sharing, which need to
precise by the GoPro’s. There is still necessity of the smartphone as the intermediate and it is
still not seamless as moving the photo or the video from the smartphones to any of the social
sites (Vattapparamban, 2016).
No zoom & Responsiveness
GoPro has a fixed lens, so there is no ability related to the Zoom. There is the narrow
field of the view mode, which is not the optical zoom but it is just like the cropping the
image. One more problem with the GoPro’s is that regulator is not that much receptive as
they could be. One is that the shutter is automatically spongy. The shutter pushes back when
it is busy, not accurate as of the other cameras. Second is that the software just is not as rapid
as it could be, and the third is that, GoPro’s has a notorious scheme of locking up from period
to period (Coleman, 2019).
Control and color balances
Various controls is obtainable on the things like ISO setting, exposure reimbursement,
experience meter type, and the shutter quickness but retrieving all these options is the real
pain if it is likened to most of the cameras. The image excellence for the GoPro is outstanding

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for the glowingly lit outdoor shots. That is like the bread and butter shot for the GoPro’s. But
other than this, the color stability is little too cool. It can be the change in somewhat like light
rooms or the photographs, but out of the camera, the color balance does not reflect all the
scenes (GoPro, 2019).
Adjacent products/adjacent markets
The turbulent entry of the GoPro’s into the drone market seems to be stabilized. There
were many matters in the Karma. The Karma was relaunched deprived of further issues to
comprehensive with the competitors in the market. GoPro can inhabit a strong market
position in the nascent 360- degree camera over the Fusion, but that is likely to be a niche
market for the predictable upcoming. The adjacent product groups are: drones and handheld
stabilizers are subject by DJI, one of the competitors of the company. Tough competition is
given by Apple Inc’s iPhone six ranges, in the video (Wang, Hagman, Nguyen, & Nguy,
2018). Major products of the company are HERO cameras, GoPro KARMA & GoPro
KARMA Grip, GoPro Fusion, Accessories, Video editing.
Since the foremost target of the action camera business is a sports player of the high
and middle class who are very much concerned in sharing their experience. The demand for
these, product varies very frequently among the seasons. In addition to this, it can be said that
the Chinese brand which can be accepted online give the tough competition to the GoPro
specifically in the economic recession.
Brand competitors Generic competitors

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Sony HDR-AS100V
Garmin
Tom-tom bandit
Smartphones
Canon
Nikon
Product competitors Total budget competitors
The Yi
Drift
Contour ROAM 3
iON (cheaper)
Sports apparel/gear
Transportation
Groceries
GoPro failed to see the shift of the market towards drones & birds-eye shots in videos
& blogging (Roesner, 2014).
Conclusion
It can be concluded from the above analysis that, GoPro is one of the most successful
companies in San Mateo, California, U.S. various issues are being faced by the company
while competing in the market with the competitors, various issues related to the technology
and connective were there with the product of the company. Somehow, the company manage
all the issue and achieve success in terms of the demand in spite of the cancelation of the
contact with China, which was there major retail chain.

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Various issues related to the company’s product are being discussed in the above
paragraphs. The main aim of the company is that sharing the experience results in more
meaningful and much more fun.
Recommendations
The short term, as well as long-term subjects, which need to emphasis by the
company, is:
 Research and development
 The higher cost of the product
 Lack of understanding of the market
 Out of touch with the customers
 Underestimating the competition
To cope up with such above mention difficulties, which relate to the product
performance, the business has to take below-mentioned steps for the future.
The business has to help the consumer’s to make their cameras more useful in detail
of their business by changing the firmware. Overall, there is an essential from the company to
appreciate the pulse of the business.
The business needs to manage their hardware and software efficiently if the company
wishes to stay in this competitive world and the cutthroat market of technology being user-
friendly. Company has to focus on their pricing criteria, GoPro needs to cut the charges of
their product so that the people feel very much comfortable in investing the ecosystem of the
GoPro. They need to rationalize the work and employees if they want to continue afloat.

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It can be seen that the GoPro is one of the leaders in the market due to which it starts
taking the sales figure for decided and did not pay attention to the further growth of the
company. The company needs to emphasis on product innovation to contend with its
competitors. The management of the establishment needs to emphasis on the company’s
future. The company has to advancement video resolution and strength.
Bibliography
Coleman, D. (2019). Pros and Cons of Using a GoPro as an Everyday or Travel Camera.
Retrieved from havecamerawilltravel: https://havecamerawilltravel.com/gopro/gopro-
camera-travel/

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Evers, C. (2015). Researching action sport with a GoPro™ camera: An embodied and
emotional mobile video tale of the sea, masculinity and men-who-surf. In Researching
Embodied Sport. Routledge.
GoPro. (2019). about us. Retrieved from gopro.com: https://gopro.com/en/in/about-us
GoPro. (2019). Advanced Protune Controls Explained. Retrieved from gopro.com:
https://gopro.com/help/articles/Question_Answer/Advanced-Protune-Controls-
Explained
Lee, C. K. (2017). Feasibility study of utilization of action camera, GoPro Hero 4, Google
Glass, and Panasonic HX-A100 in spine surgery. . Spine, 275-280.
Mac, R. (2013). The mad billionaire behind GoPro: The world’s hottest camera company.
Forbes Magazine.
Mamiit, A. (2015, june 2). Love GoPro Camera? Hackers Love It Too And They Could Be
Watching You. Retrieved from techtimes:
https://www.techtimes.com/articles/57216/20150602/love-gopro-camera-hackers-
love-it-too-and-they-could-be-watching-you.htm
Mitchell, S. (2018, may 30). What can tech firms learn from GoPro’s decline? Retrieved
from alphr: https://www.alphr.com/business/1009463/gopro-decline-business-lessons
Paro, J. A. (2015). Video-based self-review: comparing Google Glass and GoPro
technologies. . Annals of plastic surgery.
Roesner, F. D. (2014). Augmented reality: hard problems of law and policy. ACM
International Joint Conference on Pervasive and Ubiquitous Computing
(UbiComp'14): Adjunct Publication, 1283.

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Vattapparamban, E. G. (2016). Drones for smart cities: Issues in cybersecurity, privacy, and
public safety. . International Wireless Communications and Mobile Computing
Conference .
VeedYou. (2018, feburary 12). GoPro Battery Life: What To Expect And How To Improve It.
Retrieved from veedyou: https://www.veedyou.com/gopro-battery-life/
Wang, M. n., Hagman, V., Nguyen, K., & Nguy, T. (2018, june 1). GoPro: An analysis of the
competitive environment & potential IMC. Retrieved from rosannathunguyen:
https://rosannathunguyen.files.wordpress.com/2018/01/gopro-report.pdf
Wei, W. (2015, march 3). Vulnerability Exposes Thousands of GoPRO Users' Wireless
Passwords. Retrieved from thehackernews:
https://thehackernews.com/2015/03/gopro-wireless-password.html
Wells, G., & Nicas, J. (2016, may 2). GoPro’s Big Tech Problem: Smartphones. Retrieved
from wsj: https://www.wsj.com/articles/gopros-big-tech-problem-smartphones-
1462203560
.
Appendix 1

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