Gopro Case Analysis

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GoPro’s internal environment stems from self-promotion and brand awareness through various social media outlets to expand its network and community reach. The firm promotes the use of its camera’s through viral video marketing campaigns that are generated from the company and its customers. “Essentially, GoPro uses its own community to help market its devices to non-GoPro owners” (Wall Street Daily). In place of an art director, acting cast and videographers; GoPro simply hands a wearable camera to an athlete or extreme sportist. On a smaller scale, regular customers have become advertisers, shooting high-quality video, loading it onto YouTube and/or various social networks, and advertising the capabilities of the cameras to friends, family, …show more content…

The camera’s unique abilities to withstand nearly all weather conditions have allowed the company to reach that goal. It is clear the company has developed a quality product, but it is their social marketing that developed their brand. With the intention of creating brand awareness and marketing its versatile camera, the company started a YouTube channel (Daily News). The viral video marketing has allowed customers to be a part of and share unique experiences with virtually everyone. Currently, the GoPro YouTube channel has over 3 million subscribers and over 6,000 videos are posted each day with ”GoPro” listed in the title (YouTube). Additionally, GoPro.com currently averages 1.2 million visitors on a monthly basis. Of these viewers, most come back 2-3 …show more content…

External Environment Many companies today, must operate in a challenging and volatile economic environment. The United States got off to a weaker-than-predicted start in 2015: with unemployment rates continuing to fall, and currently stand around 5.4%. Consumer spending, which accounts for approximately two thirds of all economic activity, has been modest so far in 2015 (Schwartz, New York Times). GoPro is functioning in a complicated financial state faced by the camera industry. On one spectrum, widespread usage of smartphone cameras has pushed traditional cameras into a downward spiral. Consumers would rather spend $150-300 on a new smartphone (with many additional features) than a new digital camera (CNBC). However, the camera industry as a whole is not suffering — there is a segment of this market that is holding up well: digital single-lens reflex cameras (SLRs) and compact cameras. Positioned in the action camera segment of this market, GoPro reported 4th quarter revenue of $634 million in 2014; with a market cap of 7.65 billion (Investor: GoPro). “GoPro improved 75% year-over-year and more than doubled the company’s third-quarter sales of $280 million. The San Mateo, California-based company easily outpaced the expectations of analysts, who predicted revenue of $580 million”

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