MGT604 Strategic Plan: GO PRO's Cost Leadership Strategy Analysis

This report presents a strategic plan for GO PRO, a company facing challenges from advancements in technology, particularly in mobile phone cameras. The report analyzes the role of the senior financial manager and recommends the cost leadership strategy to maintain a competitive advantage. It discusses market penetration, especially in metro cities and tourist locations, and the advantages of targeting younger customers developing photography skills. The report also includes an appendix with options from Porter’s competitive strategies, Miles and Snow’s adaptive strategies, and Ansoff’s product/market strategies, along with a reference list. The analysis emphasizes the importance of cost reduction while maintaining quality to compete with substitute products and new market entrants.

RUNNING HEAD: STRATEGY AND ENTERPRISE
Strategic Plan
Name of Student:
Name of University:
Author’s note:

1STRATEGY AND ENTERPRISE
Introduction:
Strategic management in a company is required in order to gain the clear, understandable
and simple plans that can be structured in order to gain the organizational goal and maintain a
competitive advantage from the other organization in the same industry (Rothaermel, 2016).
The GO PRO is the manufacturer of small and high quality camera. The company has
been running successful for years. However, with the present advancement of science and
technologies, changes have occurred in the operations of various gadgets. The mobile phones
that are being manufactured recently are devised with high quality video cameras. This has posed
a threat to the GO PRO company since the small cameras are gradually becoming irrelevant. The
direct stakeholders thus decided to meet and discuss about the strategic planning that could be
done in order to accelerate the company’s performance.
Aim:
The aims of the report are to discuss the role of the senior financial manager and to chose
a strategic matrix for GO PRO, and justify the effectiveness of the same.
Discussion:
As the senior finance manager of GO PRO, it is essential for the person to analyse the
financial condition of the organization and allocate resource wherever necessary. In the present
context, the finance manager must focus upon the strategy that can be used in order to boost up
the financial performance of the firm (Ekpo, Etukafia & Udofot, 2017). He must also analyze the
risks associated with his strategy. Since GO PRO is a company that is well known for its quality
of products, the manger can focus upon this benefit and make use of the Cost leadership strategy
for the sale of their cameras. Since the business at this point of time is currently at risk, the
security of sustenance is a key issue. Thus, using the cost leadership strategy it can generate new

2STRATEGY AND ENTERPRISE
markets. Customers who cannot afford to buy an expensive mobile with high quality camera can
shift to the option of such small cameras at a lower range Moreover, with the cost leadership
strategy; the company can penetrate into a new segment of the young customers who are
developing their skills in photography (Banker, Mashruwala & Tripathym, 2014). the aim of
market penetration will also be advantageous to the company since in this manner they will be
gaining a big market share and hence the less profit margin that will occur as a result of the cost
leadership will be addressed (Arteconi, Patteeuw, Bruninx, Delarue, D’haeseleer & Helsen,
2016). The cost leadership will also allow the company to reduce competition. The GO PRO
Company will be facing completion from substitute that is the mobile phones and the
competition from the new entrants with better technologies. By reducing the cost and
maintaining their quality, the company will be able to make a more sustainable approach and
competitive leadership (Jhonson, 2016). Their introduction in the new market can be done if they
target the metro cities as well as the tourist spots. Tourists and the photography business related
to tourism have more tendencies of using cameras rather than mobile. Targeting these areas for
penetration will positively help the company.

3STRATEGY AND ENTERPRISE
Appendix:
Options Porter’s competitive
strategies
Miles and Snow’s
adaptive strategies
Ansoff’s
product/market
strategies
Current Broad target
(Cost Leadership)
Seek New Markets Expand Market
Strategy 1 Prospectors Market Penetration
Current Uniqueness Some Innovation Improve Product
Strategy 2 Differentiation Analyser Product development
Current Cheap products Defend Niche Have More Products
Strategy 3 Focused Cost
Leadership
Defender Diversification

4STRATEGY AND ENTERPRISE
Reference List:
Arteconi, A., Patteeuw, D., Bruninx, K., Delarue, E., D’haeseleer, W., & Helsen, L. (2016).
Active demand response with electric heating systems: Impact of market
penetration. Applied energy, 177, 636-648.
Banker, R. D., Mashruwala, R., & Tripathy, A. (2014). Does a differentiation strategy lead to
more sustainable financial performance than a cost leadership strategy?. Management
Decision.
Ekpo, N. B., Etukafia, N., & Udofot, N. E. (2017). Finance manager and the finance function in
business sustainability. International Journal of Business, Marketing and
Management, 2(1), 31-38.
Johnson, G. (2016). Exploring strategy: text and cases. Pearson Education.
Rothaermel, F. T. (2016). Strategic management: concepts (Vol. 2). McGraw-Hill Education.