GoPro PESTEL Analysis: Impact of Macro-environmental Factors on GoPro

This report presents a PESTEL analysis of GoPro, examining the macro-environmental factors influencing its business. It analyzes political factors, such as tariffs, and their impact on overseas operations. Economic conditions, including domestic growth and unemployment rates, are assessed for their favorable influence on the camera industry. Socio-cultural forces, driven by social media and active lifestyles, are highlighted as contributors to demand. The rapid technological changes and competition are also considered. Environmental concerns regarding battery disposal are addressed. Legal/regulatory factors, particularly those affecting the drone camera sector, are examined. The analysis concludes that GoPro's macro-environment is favorable, with economic, socio-cultural, and technological factors being particularly advantageous, while political, environmental, and legal factors have a lesser but present influence.

Running head: GOPRO PESTEL ANALYSIS 1
GoPro PESTEL Analysis
Student’s Name
Institutional Affiliation

GOPRO PESTEL ANALYSIS 2
GOPRO PESTEL ANALYSIS
Pestle analysis can be described as a tool used by organizations and marketers to do
an analysis of the macro-environmental factors, which have an impact on the company. In
this case, the focus is on GoPro organization, and the PESTEL analysis might be used as a
pointer for the strengths and weakness of the company as it enters in the commercial drone
market (Pisani & van den Dolder, 2018). The PESTEL analysis will aid in indicating all the
strategically relevant factors in GoPro’s macro environment while indicating the
opportunities it presents to the company.
Political Factors
Political factors such as Tariffs affect the decision making of the organizations
overseas operations. However, there is no sufficient information that indicates that political
factors exert significant pressure on the domestic activities of the drone or camera industries.
Economic Factors
Economic conditions, which are facing the industry, are favorable. However, the
recovery from the Great Recession of 2008 has not been exemplary; there was domestic
economic growth, low-interest rates, as well as unemployment, which are contributors to a
healthy market for consumers (Rao, Gopi, & Maione, 2016).
Socio-Cultural Forces
It is imperative to note that social-cultural forces do have a positive impact on the
camera industry. Social-cultural values immensely contributed to the action camera sector
upon an increase in the popularity of social media. This may have a positive impact on the
demands of the drone cameras like the GoPro’s Karma (Rao, Gopi, & Maione, 2016). People
are embracing active lifestyle which influences the demand for action cameras.
Technological Factors

GOPRO PESTEL ANALYSIS 3
It is clear that there are rapid technological changes as well as constant advances in
the technological sector, which have been considered as the hallmark of the action camera
industries. The new technology increases the competition among companies in the action
camera and drone industry (Giones & Brem, 2017).
Environmental Factors
The source of power for the camera is batteries; hence, the organization is faced with
concerns about environmental pollution as well as the proper disposal of the used batteries.
Apart from these conditions, there are no unique environmental factors affecting the industry.
Legal/Regulatory
The legal environment is problematic for the drone camera aspect of the sector. It has
to be noted that in 2015, the Federal Aviation Administration added a requirement for the
registration of all drones that weigh between 0.55 and 55 pounds (Zwickle, Farber, & Hamm,
2019). Drones have been linked to terrorism activities and occasional encroachment in
unwanted places. Therefore, additional legal regulation may be expected in the drone
industry.
Conclusion
To conclude, GoPro’s macro-environment is favorable since all the relevant factors
that have enough magnitude to influence the long term objectives, business model, as well as
strategies of the organizations, are all favorable. It has been determined that the economic and
socio-cultural forces are very favorable for the company. In addition, the technological
factors, which are the driving forces of the industry, are also favorable. However, the
environmental, political, as well as legal factors certainly have an influence on the actions
and activities of the camera industry to some extent. Nonetheless, there is little to no evidence
indicating that they can be considered strategically relevant.

GOPRO PESTEL ANALYSIS 4
References
Giones, F., & Brem, A. (2017). From toys to tools: The co-evolution of technological and
entrepreneurial developments in the drone industry. Business Horizons, 60(6), 875-
884.
Pisani, N., & van den Dolder, P. (2018). GoPro, Inc.: Will Entry into the Drone Market Help
its Comeback?. SAGE Publications: SAGE Business Cases Originals.
Rao, B., Gopi, A. G., & Maione, R. (2016). The societal impact of commercial
drones. Technology in Society, 45, 83-90.
Zwickle, A., Farber, H. B., & Hamm, J. A. (2019). Comparing public concern and support for
drone regulation to the current legal framework. Behavioral sciences & the
law, 37(1), 109-124.