GoPro
Published on Apr 19, 2016
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PRESENTATION OUTLINE
Mission Statement
- “Enabling you to share your life through incredible photos and videos by capturing, creating and sharing the world’s most GoPro perspective with versatile cameras.”
The public company GoPro, has experienced rapid growth and become an internationally known business. Nicholas Woodman, CEO and founder of GoPro, gives his mission statement as “Enabling you to share your life through incredible photos and videos by capturing, creating and sharing the world’s most GoPro perspective with versatile cameras”. His mission statement offers an outline of the fundamental purpose of an organization.
History
- 2001 - Nick develops first prototype
- 2004 - First camera is sold
- 2006 - GoPro goes digital
- 2011 Outside invcestment
Photo by Daniel Y. Go
Untitled Slide
- 2011 - GoPro releases Hero 2
- 2013 - Foxconn invests $200 Million
- 2014 - GoPro Goes public
- 2016 GoPro announces new drone
Ethical History
- Corporate Social Responsibility Code
- Conflict Free Sourcing Initiatives Regulatons
- Avoids funding third world war efforts
GoPro stives to run their business responsibly and ethically, including all of their suppliers, under the Corporate Social Responsibilty Code, CSRC.
CSRC ensures that business conditions for all their suppliers are run safely and fairly, they prohibit underage labor and forced or prisoned labor, and mandates that they are harrassment and discrimination free.
They also ensure that all minerals used in producing their cameras are under the Conflict Minerals Declaration under the Conflict Free Sourcing Initiatives.
They will render services if they find out that these regulations have been violated.
CSRC ensures that business conditions for all their suppliers are run safely and fairly, they prohibit underage labor and forced or prisoned labor, and mandates that they are harrassment and discrimination free.
They also ensure that all minerals used in producing their cameras are under the Conflict Minerals Declaration under the Conflict Free Sourcing Initiatives.
They will render services if they find out that these regulations have been violated.
Photo by davis.media.access
SWOT Analysis
- GoPro continues to adjust to consumer needs and wants to keep their customers well satisfied, while also bettering their company as a whole.
- This company has overcome many obstacles and have become known nationwide.
GoPro is the leading company that deals with action and motion pictures, and continues to adjust to consumer needs and wants to keep their customers well satisfied, while also bettering their company as a whole. These cameras not only capture HD quality pictures and videos, but is portable while small, so it is at your convenience whenever you want to capture the perfect shot. This company has overcame many obstacles but now is not only a nationwide but a worldwide country.
Strengths
- High growth rate
- Possesses potential
- Well trusted company
- Advantage over other companies
Strengths:
• Continue to add with their high growth rate.
• Provide a HD portable quality picture.
• Possessing potential as well as durability.
• Well trusted company in the film industry.
• Maintaining their competitive advantage over all other companies.
o GoPro has held a specific market that no one else has before.
• Continue to add with their high growth rate.
• Provide a HD portable quality picture.
• Possessing potential as well as durability.
• Well trusted company in the film industry.
• Maintaining their competitive advantage over all other companies.
o GoPro has held a specific market that no one else has before.
Photo by talksrealfast
Weaknesses
- Appeals to specific consumers
- Company's profitability intrigues competitors
- Expensive
• Intrigues competitors with their company’s profitability.
• Lazy tax structure.
• Non global market.
• Appeals to specific consumers (outdoors people).
• Expensive
o A GoPro camera is not a necessity item, but more of a recreation item, so it is harder for the consumer to justify the purchase unless they are an extreme sports enthusiast.
• Lazy tax structure.
• Non global market.
• Appeals to specific consumers (outdoors people).
• Expensive
o A GoPro camera is not a necessity item, but more of a recreation item, so it is harder for the consumer to justify the purchase unless they are an extreme sports enthusiast.
Opportunities
- Expand market
- Creation of new products
- Introduce products to additional upcoming markets
• Can look for new ways to expand and further their market.
• Can increase profitability by embracing the company’s growth rates.
• Spread the GoPro product and take advantage of the growing economy.
• Use more capital diversification to attract new buyers.
• Ensure your clients of your products quality and constantly coming up with and releasing new products.
• Take advantage of today's global market and introducing their product to additional upcoming markets.
o The company can expand their market by partnering with other successful and recognized companies in a similar industry and market to reach a larger customer base.
• Can increase profitability by embracing the company’s growth rates.
• Spread the GoPro product and take advantage of the growing economy.
• Use more capital diversification to attract new buyers.
• Ensure your clients of your products quality and constantly coming up with and releasing new products.
• Take advantage of today's global market and introducing their product to additional upcoming markets.
o The company can expand their market by partnering with other successful and recognized companies in a similar industry and market to reach a larger customer base.
Photo by minkuni
Threats
- Well known companies with competing products
- Strict regulations for testing and creating new products
• Have to go through strict government regulations which can make it difficult testing and creating new products as well as transporting them
• Other well known companies with competing products
• New and upcoming competitors
o With rumors of Apple Inc. purchasing GoPro, it creates pressure for the company to do something different and to change their marketing structure.
• Other well known companies with competing products
• New and upcoming competitors
o With rumors of Apple Inc. purchasing GoPro, it creates pressure for the company to do something different and to change their marketing structure.
Marketing
- Connnect to consumers through passion
- GoPro on social media
- Markets to targeted consumers
-gopro appeals to people passions and sharing those passions with others
-GoPro connects with consumers on social media with 7.9 million Facebook fans, 1.17 million twitter followers, 3.2 million Instagram followers, and 2 million YouTube subscribers.
GoPro takes advantage of these platforms to showcase videos made with their products.
This allows GoPro to show the quality of their product and video resolution, the durability of the camera, and diverse uses it possesses in a short, exciting, and fun video.
market to target consumers by using social media and only those who follow or like them receive ads
-GoPro connects with consumers on social media with 7.9 million Facebook fans, 1.17 million twitter followers, 3.2 million Instagram followers, and 2 million YouTube subscribers.
GoPro takes advantage of these platforms to showcase videos made with their products.
This allows GoPro to show the quality of their product and video resolution, the durability of the camera, and diverse uses it possesses in a short, exciting, and fun video.
market to target consumers by using social media and only those who follow or like them receive ads
Photo by Perfectance
Distribution
- Direct to customer
- Authorized resellers
GoPro’s distribution is through two main models. GoPro offers all their products direct to consumers through their online website and through authorized resellers. Consumers can easily purchase and find excessive information about the GoPro products on their website. Its easy use and detailed descriptions helps customers feel connected and purchase the product being informed about it. Consumers can also purchase the product from authorized resellers like sporting goods stores, outdoor suppliers, and whole sale stores like Walmart, Costco, and Sams Club.
Operation
- GoPro Inc.
- Outsource production to China
- Import supplies from China
GoPros started in the room of Nick woodman. He soon developed a prototype and his business began to build. To create a camera with unmatched resolution, size, versatility and features he had to create his own. He created Woodman Lab Inc. and began constructing camera through overseas manufacturing. Woodman Lab Inc. soon became GoPro Inc. as the brand name began to gain recognition and is headquartered out of San Mateo, California. GoPro does production in China and import most of their supplies. Although GoPro does manufacture outside of the United States they have strict rules and regulations to prevent unethical production. GoPro maintains an internal compliance team whose members undergo on-the-job training on enforcement of the Corporate Social Responsibility Code to mitigate risk of suppliers violating workplace laws. GoPro closely monitors their supply chain and conducts on sight visits to outsourced workforce locations. GoPro has supplier requirements and policies that prohibits human rights abuses and unethical practices. GoPro also regulates where its suppliers get minerals because these precious minerals can be sold by war groups of third world countries and used to fund war efforts. To prevent interaction with these groups GoPro work with suppliers compliant with CFSI regulations. GoPro exercised outsourcing to reduce costs and create a product with higher value as efficiency increased and production cost decreased.
Photo by mskogly
Effects of Recession
- Loss in stock value
- Gross margin, net income, and operating income decreased from last year
- Recession motivates ingenuity for survival
- GoPro created 3 new projects to be released this year
These negative effects can be seen in GoPro’s gross margins, operating income, net income, and value per share, as they are all down from last year. Gross margin has declined 3.4% from last year, Operating income had decreased 70.7%, net income is down 71.8% and income per share is down 72.8%. These effects can be contributed to the current recession. GoPro has begun to spend more money on new products hoping upcoming releases will help bring the company into the black. Although GoPro has begun to underfunded their advertising to reduce cost but have created an even further decline in sales.
GoPro’s total revenue in 2015 is up 16.2% from 2014, with it expected to rise soon as 45% of annual revenue comes in ladder quarters where Christmas and holidays provoke purchases
These tough times have called on the research and development of GoPro to excel for the survival of their company and GoPro has announced the new release of Karma, New drown compatible with GoPro cameras, the Hero 5, newest edition of their small, portable, Bluetooth enabled camera line, and the Omni, new virtual reality production camera holder and software. The Omni is able to capture video and create virtual realities.
GoPro’s total revenue in 2015 is up 16.2% from 2014, with it expected to rise soon as 45% of annual revenue comes in ladder quarters where Christmas and holidays provoke purchases
These tough times have called on the research and development of GoPro to excel for the survival of their company and GoPro has announced the new release of Karma, New drown compatible with GoPro cameras, the Hero 5, newest edition of their small, portable, Bluetooth enabled camera line, and the Omni, new virtual reality production camera holder and software. The Omni is able to capture video and create virtual realities.
Untitled Slide
Financial Statement
- Revenue up 16%
- Gross margin down 3.4%
- Operating income decreases 71%
- Stock attribute decreased 74%
• Revenue of $1,619,971 up 16% from 2014 revenue of $1,394,205
•Gross margin of 41.6%, compared to 45.0% of 2014
• Up 43% Year-Over-Year
•Operating income decrease 70.7% from previous year
•Net income attributable to common stockholders of $0.25 per diluted share, compared to $0.92 per diluted share in 2014
•Gross margin of 41.6%, compared to 45.0% of 2014
• Up 43% Year-Over-Year
•Operating income decrease 70.7% from previous year
•Net income attributable to common stockholders of $0.25 per diluted share, compared to $0.92 per diluted share in 2014
Photo by Paulo Japan
summary
- GoPro created by Nick Woodman
- Made to capture adventure with professional quality
- First to market
- Ethically sound
- Financially struggling
- Three new releases in 2016
- World known
