GoPro’s Analysis of the Internal Environment- Market Strategies and Financial Performance
Analysis of the Internal Environment
GoPro has been accredited by the Better Business Bureau since 2009, and currently stands with an outstanding A+ rating (BBC). GoPro is an active image capture company, which offers several lines of wearable digital cameras for a broad range of activities. The name for GoPro comes intuitively from the passion for athletes to, at some point in their career, ‘go pro’. The name is meaningful for extreme sport goers, and is geographically transferable. GoPro’s slogan, ‘Be a Hero’ is relevant to the name, GoPro. It is transferable because the desire to, ‘Be a Hero’ transcends geographic, cultural, and categorical boundaries (GoPro).
The GoPro Hero 2 is a point-of-view camera that records in 1080p, and takes photos up to 11 megapixels (GoPro). This makes the GoPro Hero 2 the perfect camera for anyone trying to record “in action” videos. From athletes, to outdoorsmen, to adventurists this camera is perfect for sharing your feats with the world. The GoPro Hero 2 comes in three varieties: Outdoor, Motorsports, and Surf editions (Branded with Fire). These options clearly show GoPro’s commitment to the extreme sports community and demographic. As is the case with most technology, price is a factor. Varying on their capabilities and technology, price is directly related. The affordable pricing strategy allows GoPro to broaden their potential market and increase customer retention.
The majority of GoPro’s promotion comes through viral videos that are publicized through social media (Twitter, Facebook, and YouTube) and the http://www.gopro.com website. These online commercials become successful viral videos because they do not focus on the product itself, rather, on its output. The videos are all filmed using the GoPro and feature famous athletes and cultural artifacts. GoPro also uses three other techniques to promote the brand: product placement in best buy and specialty sports retailers. Event sponsorship where GoPro name is used on signs. Also throughout the event they will be reminding the guests that GoPro is the sponsor. Another method is endorsements from professional athletes that will showcase the product to the public. (Branded with Fire). Advertising online and on Social Media networks is an easy way for GoPro to reach their target demographic of active youth. By doing so, GoPro can find their niche demographic without the budgetary constraints of a multinational ad campaign.
CEO Nick Woodman claims GoPro now holds 90 percent of the wearable-camera market, after growing well over 300 percent in 2011. “Perhaps even more impressive than the revenue growth is the passion GoPro’s users have for its products, as expressed by the flood of GoPro videos spreading across YouTube and Facebook. GoPro’s Facebook fan base grew from 50,000 to more than 1.3 million in 2011 alone (Foster).
Digital-imaging industry analyst Chris Chute of market research firm IDG estimates GoPro’s 2011 revenue at $250 million, on sales of 800,000 cameras worldwide. He calls GoPro “the fastest-growing camera company in the world (Foster). Camera sales at bike shops reached $23.6 million in 2011, an increase of 341 percent over 2010–admittedly, from a small base. The category continued its blockbuster growth, with sales up 48 percent in the first two months of 2012 compared with the same period of 2011, according to BPSA Topline sales data from the Leisure Trends Group (McClellan).
Sandra A Loboda
College of Business
University of South Florida