The GoPro brand is synonymous with action cameras as the company led by Nick Woodman created this market by launching the first commercially available action camera in 2002. There is no political and economic factor significant in this industry, however, for the social factors that make this company's business shine in recent days or in the future. This is supported by the current phenomenon where more and more people are using social media to express their daily lives, so the need for an action camera is blossoming. This type of camera is incredibly popular among sports enthusiasts, those who enjoy water sports, skiing, snowboarding, motorcycling and other extreme sports, or anyone who wants to record great videos and then upload them to social media. Say no to plagiarism. Get a tailor-made essay on "Why Violent Video Games Shouldn't Be Banned"? Get an Original Essay The technological factors that influence this industry are moderately affected since the commoditization of the action camera market has reached GoPro as the leading company. However, the company has some disadvantages as some other competitors try to imitate the feature-rich devices and sell their products at a lower price. The market for these cameras is still in its nascent stage and is gaining a lot of popularity through media, advertising and social networks. Identify the industry your company belongs to and the company's position in the industry (e.g., top performing, mid-range, bottom). GoPro has come a long way since then as its technology has grown by leaps and bounds. However, the market for this sector is highly competitive and characterized by frequent product introductions and rapid technological advances. Many new players are attracted to this industry, which will likely impact the price, features and quality of action cameras. Identify a competing company that belongs to the same industry and occupies a similar position in the industry. You will use this company further in your analysis The GoPro company has to compete with established and well-known camera manufacturers such as Canon Inc., Nikon Corporation, Olympus Corporation, Rollei GmbH & Co. KG, and Vivitar Corporation, as well as large diversified electronics companies such as Panasonic Corporation, Polaroid Corporation, Samsung Electronics Co., Sony Corporation and VTech Technologies, as well as specialized companies such as Garmin Ltd, also have to compete with new emerging companies in the industry. For example, Chinese companies are working their magic with action cameras, coming out with cutting-edge devices and offering them at affordable prices. For example, Chinese action camera manufacturers such as SJCAM and AKASO. These new companies offer competitive products directly into this category. Conduct Porter's Five Forces Analysis and conclude with an assessment of the industry's current profitability and growth potential. The Five Forces: Rivals – Several rivals have entered the wearable action camera market, which has increased the intensity of the space; however, the quality and performance of the GoPro product allows them to maintain an edge over the competition. As competing products come closer to GoPro's quality, this rivalry will intensify. Major direct competitors include Sony, JVC and Garmin. These products are designed similarly to GoPro: they can be mounted on a surface to capture footage from a multitude of perspectives. The rivalry will continue to increase as new players enter the market focusing on a subset of the space. “Wearable cameras” have become increasingly popular and have increased the number of competitors in the industry. THERivals have forced GoPro to give up its premium positioning and slash prices to take its action cameras off shelves. In fact, GoPro is now following the competition to save its position in the market. New Competitors: Since GoPro has many historical advantages by being first to market, such as brand identity, distribution network, and lots of patent protection, the threat of new competitors is quite medium. However, this threat can quickly become stronger, especially when coming from consumer electronics giants. Companies with strong experience in the consumer electronics industry (and large R&D budgets) have the resources available to quickly enter this space (as demonstrated by Sony, Panasonic, JVC, and Garmin). Furthermore, smaller players use Kickstarter (which is a popular crowdfunding source) as a means to obtain the capital needed to fund new companies that have game-changing competitive potential (e.g. Giroptic's 360 Camera). Tools like Kickstarter have allowed new entrants to overcome the financial hurdle that would otherwise protect GoPro from the threat of new entrants. Buyers: GoPro is currently the leading brand in a nascent industry, allowing them to earn more profit for their action cameras. However, the industry is experiencing rapid growth, attracting many new companies with competitive products. The market for this sector is highly competitive. There are many camera manufacturers out there, with their specialty in competing on market share. In this market buyers are price sensitive as there is low differentiation between devices and a lack of diversity of choice. Gopro product price is well known for its high price compared to other competitors. This condition will eventually force you to follow the competition in an attempt to increase sales. But success with this move's price reduction isn't guaranteed, because the basic Hero is still expensive compared to what competitors are offering. Suppliers – There is a high dependency on third-party suppliers, due to the limited number of suppliers offering rare and exclusive capable electronic components, especially in this area the power of suppliers is high. This condition will reduce the profitability of the industry as companies are subject to supplier prices. For example, GoPro has exclusive vendors among its third-party vendors. The following excerpt is from the company's recently released S-1: “Specifically, we incorporate semiconductors for video compression and image processing from one supplier, Ambarella, Inc., into all of our cameras, and we do not have a supplier alternative for these key components.” Profits could also be hindered if competitors in this market do not possess manufacturing capabilities. Threat of substitutes – One of the threats to the recording device industry is the replacement of smartphones, which can perform similar functions and are widely owned, with some estimates putting smartphone ownership at 22% of the world's population. The value of a smartphone in the form of convenience and availability could help reduce switching costs for the buyer as the video quality and smartphone life improve, which in turn will increase the strength level from low to high. The rapid development of technology in smartphones should be taken into account. In the near future, the availability of smartphones and their ability to capture video will probably appear to create an accessory that turns smartphones into underwater cameras. However, smartphones and tablets with photo and video capabilities have significantly replaced salesof traditional cameras. However, these GoPro capture devices enable differentiated use cases compared to mobile devices. Going forward, the POV segment will capture more market share from the overall capture device market. The most important force to overcome in strategy development is the threat of new competitors. It is because this segment will continue to attract more new entrants, increasing the profit risk for the company. Companies will have to make an effort to develop strategies to combat incumbent rivals. Companies could then focus on reducing buyer power and limiting the threat of substitutes. Supplier power will decline as this market segment matures. Company's competitive and business strategy: discuss company's competitive strategy: explain the company's business model: focus on how the company creates value • discuss the company's resources and capabilities (strategic advantages) Assess growth potential of the company: discuss how the company supports its strategic advantages and explain the risks associated with the company's business modelexplain the company's business model: focus on how the company creates value. Internal Analysis Summary, How Businesses Fit (or Don't Fit) The biggest challenge for this company is that its capabilities interact with 5 forces with the threat of new entrants having the greatest potential to negatively impact the GoPro's market share, GoPro's strategy of promoting a lifestyle, rather than simply an electronic good, will contribute to GoPro's sustainability as a premium product with a dominant market share. At the same time, GoPro will need to continue to invest in research and development and partnerships that will allow GoPro to maintain its position as a leader in next-generation technology. Partnerships will also play an important role in retaining potential replacement products as complementary allies, rather than competitors. Internal development of complementary technologies that fit their market positioning, such as the move to become a more comprehensive media company with content management and sharing expertise, will also allow GoPro to maintain its dominant position, mitigating the impact of competitors on market share. Assess the company's potential growth: Discuss how the company supports its strategic advantages and explain the risks associated with the company's business model. GoPro has successfully carved out a new niche in an otherwise mature and competitive industry. As an established leader in versatile extreme sports photography equipment, GoPro has solidified its unique position. Going forward, GoPro faces strategic challenges that will be brought by new market entrants, incumbent competitors, and substitute products that may offer disruptive new technologies. The electronics industry is rapidly evolving and sensitive to consumer trends. To maintain its position, GoPro will need to deepen its strategic position through content generation and management and continually develop its technology to meet the needs of tomorrow's generation today. How they figure out new revenue streams while transforming into a media company will be an interesting case study of the future. Discuss the company's resources and capabilities (strategic advantages) With the advent of the Internet comes new ways to reach customers. GoPro has established itself as one of the best companies in exploiting this medium using a unique and powerful technique. Where many companies are trying to produce that.