Strategic Plan Analysis: ProGo Pty Ltd Report (MGT604)

This report provides a strategic management analysis of ProGo Pty Ltd, examining its background, challenges, and potential solutions. The report focuses on a five-year strategic plan from the general manager's perspective, incorporating stakeholder meeting discussions. It addresses issues such as product performance, technological advancements, privacy concerns, and competition within the consumer goods sector. The analysis utilizes Porter's Five Forces and SWOT analysis to evaluate ProGo's position and propose strategies to navigate challenges related to new entrants, supplier power, buyer power, substitute products, and competitive rivalry. The report also delves into specific problems including camera malfunctions, technological shortcomings, privacy vulnerabilities, and connected device issues. Recommendations are provided to improve product quality, address privacy concerns, and enhance the overall strategic approach to achieve sustainable growth and market leadership. The report is a comprehensive overview of ProGo's strategic landscape and offers valuable insights for business management.

RUNNING HEAD: STRATEGIC MANAGEMENT
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Strategic Management: ProGo

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Executive summary
ProGo is one of the famous American technology companies, which was incorporated
by Nick Woodman in the year 2002. The company has grown into the multinational
company and has marketed its products across 100 nations. The company has faced numerous
of problems from the starting and is still facing many issues in their product performance but
at the end, company manages to become a leader in this competitive world. The main aim of
the company is to brought magic in the life of the customers, and to humble and inspire the
world every day with the help of the incredible creativity, which helps the globe in adopting
the very innovative products and always fires up to create the most valuable and innovative
products.
The focus of this report is on the strategic plan of the Pro-Go Pty Ltd of the five years
for the point of view of General Manager of the business enterprise with the meeting of the
stakeholders.

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Table of Contents
Introduction................................................................................................................................3
Aim.............................................................................................................................................4
Two strategies............................................................................................................................4
Discussion..................................................................................................................................6
Privacy legislation..................................................................................................................7
Technological advances..........................................................................................................7
Connected devices..................................................................................................................9
Adjacent products/adjacent markets.....................................................................................10
Conclusion................................................................................................................................10
Recommendations....................................................................................................................11
Bibliography.............................................................................................................................12
Appendix..................................................................................................................................14
Appendix 1...........................................................................................................................14
Appendix 2...........................................................................................................................14

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Introduction
This report will be focusing on the strategic plan, which will assist the business of the
ProGo Pty Ltd from over the next five years from the point of the view of the general
manager of the company. ProGo Pty Ltd. is a manufacturer of the small and high quality of
the actions camera.
This company is one of the top-most leading firms in photographic equipment and
supplies. ProGo Inc. has structured out the many ways since many years of doing the
business in the field of consumer goods. This company is listed at the New York Stock
Exchange (NYSE). ProGo Company was established in the year 2002 by Nick Woodman.
The company headquartered in the San Mateo, California, US. The idea of establishing a
company was originated by a Nick from a surfing trip to Australia. In which he was aiming to
capture the good quality photo but could not do that because the amateur photographers are
not able to go closer and they are not capable enough to buy the good quality equipment at
the reasonable price (ProGo, 2019).
The name of the ProGo came from the Woodman and his surfing friends who aimed
to develop professional surfers, as 'going pro' was the overall goal. Formally, it was known as
the Woodman Labs Inc. The company is traded as the NASDAQ: GPRO (Class A). This
company deal in the technology, videography, and consumer electronics industry. The key
people of the company is the CEO i.e. Nick Woodman. Actions cameras, Video editing
software and the mobile app are the products in which the company is dealing in the
worldwide market. The revenue and the operating income in the year 2017, amount to be the
US$ 1.18 billion and US182.87 million respectively (Appendix 1) (ProGo, 2019).
The organization responded to the weak sale in the fourth quarter because of the
cutting of the 7% of the workforce in January 2016 (Appendix 2). In the year 2016, the
organization has announced that it was laying off an extra 200 employees just with a view of

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reducing the costs. The company employed 963 employees in the year 2018. However, there
are millions of obsessive ProGo users across the globe, which has brought the magic in their
life. The product of the company is of humble nature, which inspired the individual every day
with outstanding creativity. More information for the ProGo Company can be gathered from
the ProGo.com. (Chalfen, 2014).
Aim
This report will be focusing on the ProGo’s background, the problems associated with
the company and the recommendations to those problems. Problems related to video quality,
technology issues, privacy issues and the various suggestions to cope up with such issues
would be discus in a meeting, which is conducted for a stakeholder.
Two strategies
The company will be focusing on the two strategic, which will help in exploring the various
opportunities in the sector of consumer goods. The manager of ProGo Inc. will use porter five
forces and SWOT analysis, in executing the strategic plan and this, will help the general
manager of a key supplier to achieve the success. These strategies will also help in dealing
with the issues such as cameras, which burst into the flames, sales have halved in the last 24
hours after the cancellation of the agreement (Hambrick, 2019).
Porter’s Five Forces - Following are the aspects of the porter’s five forces:
Threats of new entrants
New entrants in the photographic equipment bring the innovation regarding the work.
This put pressure on the ProGo Company for lowing the cost. Therefore, this has to be
managed by the company with the help of introducing the new products and services, by
building the economies scale, which will enable in lowering the fixed cost.

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Bargaining power of the suppliers
Companies in the photographic sector bought raw material from numerous suppliers.
The dominant position of the suppliers can decrease the margins, this lowers in the overall
profitability. The ProGo Company can tackle this by building the effective supply chain with
multiple suppliers (Porter, 2008).
Bargaining power of buyers
Buyers are demanding. They want to have the best products at the lowest price, which
increase the pressure on the profitability of the ProGo Company. The company can tackle
this by increasing the customer’s base and by rapidly innovating the new products.
The threat of substitute products or services
If the substituting goods fulfill the similar needs of then the probability of the ProGo
Company suffers. This can be tackled by the company by focusing on the service rather than
on the product and by increasing the price of switching cost.
Rivalry among the existing competitors
The high rivalry among the existing competitors will result in decrease in the
profitability of the industry. ProGo work in a very competitive industry. Rivalry among the
existing competitors can be managed by the building the sustainable differentiation, and
building the better scale.
The second strategy, which will be taken care by the company, is
SWOT Analysis

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The main objective of the ProGo Company is to introduce the most valuable product,
which can help the consumer in capturing the best moment of life. The strength and various
opportunities are as follows:
Strength Opportunity Threats Weakness
Having a high growth
rate
Fine quality, digital
pictures
The strong competitor
in the market
Opportunities for new
acquisition to spread in
the market.
The income level at the
constant rate
Venture the capital to
attract the buyer.
Strict government
regulations
Huge competitors in the
market and competition
of products.
The problem in changing
the price.
Unknown due to
little market
exposure
Strong step has
not been taken
for future
competition
Dubious
probability with
comparison to
others.
(Wu, 2009).
Discussion
It has been seen that, there were the issues related to the ProGo cameras, which burst into the
flames and in addition to this issue, the product were having many technical and privacy
problem. One of the major problems, which were found in the ProGo Company, was that, the

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company largest customer, a major retail chain throughout the China, which exercised the
right in the sales agreement (Kaltura, 2019).
Privacy legislation
It has been seen that the company has faced various privacy problems related to the
hacking. Due to the poor choice of the password, it is very easy for the hackers to hack the
system. If the hacker hacks the password then it is very easy for the hackers to hack all the
personal videos and the recordings. Hacker can hack the ProGo cameras even when they are
switch off. Numerous privacy vulnerabilities have been arising in the product of the ProGo
(Bland, 2014).
The privacy problem in the product of the company can be summarized as the cheery
on the pie. Various security firms have warned ProGo Company that security setting is too
easy for the cybercrime (Mac, 2013).
The company should maintain the high quality of the privacy setting. As per the Pen
Test Partner’s Ken Munro, wireless connectivity method can be leftover even in the case
when the power button is turned off. According to the various scholars, it is very easy for the
hackers to interrupt in the password of ProGo camera and use them to secretly a spy. This
type of the privacy problem can be deal by giving the instruction to the customer for setting
the strong passwords; the company should focus on the webcam malware, and webcam
protector software, which can protect the products of the company from the hackers (Mamiit,
2015).
Technological advances

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The company ProGo has various technological disputes along with various success
stories in technological advances. Various issues related to the software, product
manufacturing, and the quality of the lenses. The software’s of the company product is not up
to the mark (Wei, 2015).
 ProGo Company failed to develop the essential product technology
 Carious product issues arise due to the inappropriate development
 Low customer perceived value.
The company does not focus on manufacturing the home appliance along with the
webcams. With the manufacturing of the webcams, the target market of the company can be
increased which will help in solving the problem of low customer perceived value. Tough
competition should be given to Microsoft, Logitech, and others.
The company was not able to solve the software failure for so many years. One of the
major technology issues was that ProGo had with SD Card provision software. The company
as not having the high quality of the specialized lenses due to which the facility of high zoom
was not there in the products of the company which was overall hindering the growth of the
company and also eliminate the change to diversify the operation of the ProGo. The company
should address these technological issues as early as possible because the technology issue in
the company could welcome the winding process of the company. Such issue can be
maintained by focusing on the quality of the lenses and installing the lenses such as Rokinon
35mm Cine T1.5 Lens, Canon 50mm f/1.8 STM Lens, and Sigma 17-50mm f/2.8 Lens.
Company should focus more on the increasing the target market (Evers, 2015).
Connected devices

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There are problems of the battery, videos quality, and zoom function in the ProGo
products. The battery backup of the ProGo product is so bad in comparison to the other
cameras. Most of the time people run out of battery while performing, which is a type of the
biggie on the company (GoPro, 2019).
There were issues related to the sharing of the snaps to the social sites from the
smartphone. The company has put many efforts and enhance such a process but the company
still faces many problems. Earlier it was not easy to share the footage and videos from ProGo
products. The other problem is that, the product of the ProGo consists of a fixed lens, due to
which the zoom feature is eliminated. It has the narrow field of the view mode by which the
image seems to display like cropped images (VeedYou, 2018).
One more problem with the ProGo Company is that the receptive is not as good as it
can be. The shutter o the camera of the ProGo is automatically spongy. The shut of the
camera automatically pushes back when it is in work. The facility compared to other cameras
is so bad. The color stability of the cameras is so poor. The light can change in light rooms,
whereas out of the camera the color balance does not reflect all the scenes (Wells & Nicas,
2016).
The company has to advancement video resolution and has to focus on the video
strength. The manufacturing of the webcams along with the home appliances will help the
company in attracting new people all around the globe and help in retaining the old consumer
as well.
Adjacent products/adjacent markets

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There are various competitors of the ProGo products. The various products of the
company are HERO cameras, ProGo KARMA & ProGo KARMA Grip, ProGo Fusion,
Accessories, Video editing. The demand of the ProGo products varies from the one market to
another, as there is fluctuation in the demand of the products due to various substitutes
available with the best quality (Coleman, 2019).
In addition to the above, the Chinese online brand gives the tough competition to the
ProGo particularly in the economic recession (Lee, 2017).
All these issues which have being discuss in the meeting of the stakeholders along
with proper strategic suggestion will help the company in dealing with the issues related to
the products.
Conclusion
It can be summarized from the above information that, ProGo faced various problems
in respect of the product performance but despite this, it is one of the major leading
companies in the photographic industry. At the peak of the company, the share of the ProGo
was valued at the $86, but in 26th march 2018, the value of the share remain to be $4.81.
Various types of the product of the company has taken a huge success in the market but the
problems of the technology, privacy, and quality of the lenses, which company uses for its
products, are the main disadvantages for the company. All these issues are being discussed in
the above paragraphs. One of the pitfalls for the company was a cancelation of the contract
with China, which was a major retail chain. This paper further focuses on the various
recommendations, which can be implemented by the company to achieve success in the
competitive environment. This is the report, which will help the ProGo Company to deal with
the issues and apply the strategic plan after considering all the recommendations.

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Recommendations
Company has to frame various short-term and long-term strategies just to cope up
with the issues related to the products of the company. Further, this meeting will discuss
about more suggestion, which should be focused by the company. ProGo has to focus more
on these suggestion has to focus on the research and development, should start manufacturing
the home appliances, a good understanding of the market, and superior quality of the videos
with the high quality of the specialized lenses, and should keep in touch with the customer in
this competitive environment. The business should focus on the camera quality and should
keep in mind the pulse of the business while focusing on product quality.
ProGo Company should manage their pricing criteria of the product so that the
consumers feel comfortable with the products. The company must focus on the employees if
the management of the company wants to continue afloat. If the company wants to stay in a
competitive environment, then the ProGo has to focus on its hardware and software
effectively.
ProGo Company does not focus on the product quality so it is very much required for
the company to focus on the superior quality of videos. The company needs to focus on the
innovation regarding the products just to compete with the competitors. ProGo management
has to establish a strategy, which focuses on the future of the company.
Bibliography
Bland, A. (2014, october 4). The rise of the GoPro. The Guardian.