Action camera

Ge Yifan | Nguyen Quynh Thu

Agenda

Evolution of Action

Camera

Market Assessment

GoPro Background and Timeline

Competition Assessment

Gopro’sMarketing

Strategy for Action

Camera

Competitors’Marketing

Strategy for Action

Camera

Evaluation of GoPro’s strategy

Recommendations

Agenda

Evolution of Action

Camera

Market Assessment

GoPro Background and Timeline

Competition Assessment

Gopro’sMarketing

Strategy for Action

Camera

Competitors’Marketing

Strategy for Action

Camera

Evaluation of GoPro’s strategy

Recommendations

DefinitionAn action camera is a camera designed for

capturing and filming action, often in a

first-person viewpoint.

Evolution of action camera

1960s, a skydiver

mounted a camera on his

helmet

1960s, NASA modified

cameras so that astronauts can

use them on moon

1987, Mark Schulze,

mounted a VHS camera on his

helmet connected with

a VCR using RCA cable

Modern lightweight,

compact, mountable

action cameras

Agenda

Evolution of Action

Camera

Market Assessment

GoPro Background and Timeline

Competition Assessment

Gopro’sMarketing

Strategy for Action

Camera

Competitors’Marketing

Strategy for Action

Camera

Evaluation of GoPro’s strategy

Recommendations

GoPro’s product portfolio

GoPro’s background

Founded in 2002 in the

US, by Nicholas

Woodman

45,000 retail

locationsOver

26 mil. cameras

sold

2017$8.58

per share

2014$87per

share

Biggest market

share for action

camera

5 mil. subscribers

6,000 Gopro-tagged

videos on

everyday

GoPro’s timeline

2002Founded

2005HERO 35mm

2007Started Digital HEROs

2010Started

HD HEROs

Oct 2016StartedKARMA Drone

Nov 2016Recalling 2,500

drones - faulty electrical power

loss

2017Omni

virtual reality

GoPro’s quarterly revenue and net income

Recalling 2,500 drones

GoPro’s high cost of inventory

Agenda

Evolution of Action

Camera

Market Assessment

GoPro Background and Timeline

Competition Assessment

Gopro’sMarketing

Strategy for Action

Camera

Competitors’Marketing

Strategy for Action

Camera

Evaluation of GoPro’s strategy

Recommendations

Size ● $3.2 billion in 2014 (Seitz, 2015)● Consumers accounted for 86%, professional uses 14% (Seitz, 2015)

Growth ● Steady growth until 2021 with CAGR of 15% (Technavio, 2017)● High growth in adventure tourism

Geography● North America is the dominant contributor: sport enthusiasts, technologically

advanced and latest products, high spending● Growth in Asia Pacific: increased spending on leisure and sports activities

Economy ● North America & Europe: high standards of living● Asia Pacific: increased disposable income

Socio-Culture● Growth in Adventure Tourism (seasonality)● Popularity of sharing pictures and videos in social media● China: Different sites for different content. Youtube is blocked. Bilibili is an alternative

Technology ● Smartphones with built-in excellent-quality cameras● Frequent technological breakthroughs

Action Camera Market Assessment

Action Camera Market Assessment

Opportunities Threats

● Expansion to professional use

● Frequent technological breakthroughs

● Asia Pacific market

● Smartphones with built-in

excellent-quality cameras

● Frequent technological breakthroughs

● Market saturation (competition, shelf life)

Agenda

Evolution of Action

Camera

Market Assessment

GoPro Background and Timeline

Competition Assessment

Gopro’sMarketing

Strategy for Action

Camera

Competitors’Marketing

Strategy for Action

Camera

Evaluation of GoPro’s strategy

Recommendations

Competitors - Product market structure

Brand

Product

Generic

Founded in 1946.

Headquarter in Tokyo.

Valuation$7.7 bil.

Revenue 2017

$70 bil.

Top competitors:

Diversification

Wide price range for

action camera

Top competitors:

Founded in 2010. Based in Shenzhen

Low-priced action

cameras

Manufacturing & Selling

Action Cameras

Europe, North America, South America, Middle East, Southeast

Asia

Originally producing toys

and sports equipment

60+ countries

Top competitors assessment: GoPro vs. SONY, SJCAM

Strengths Weaknesses

● Strong presence in North America● Brand awareness ● Brand equity (quality, durability)

● Financial issues (high costs)

● Brand equity (quality, durability)● Brand awareness (wide product

portfolio)● Diversified portfolio (easier to

expand)

● Lower market share in action camera market

● Less visibility in the market

● Strategy matches Asia Pacific market ● Low brand awareness

Agenda

Evolution of Action

Camera

Market Assessment

GoPro Background and Timeline

Competition Assessment

Gopro’sMarketing

Strategy for Action

Camera

Competitors’Marketing

Strategy for Action

Camera

Evaluation of GoPro’s strategy

Recommendations

High-end: HERO 5/ HERO 6

Special need: HERO 5 session

Low-end : HERO session

Quality focus

customers

Price sensitive

customers

Sports lovers

(cycling)

GoPro’s Strategy: Targeting multiple segments

GoPro’s Strategy: Positioning as an experiential product

“We’re not just a camera anymore. We’re an enjoyment platform for people around the world to watch.”

-Paul Crandell-Vice president of marketing

Capture and share your life

Quick stories, edit on phones, share on

Instagram

Accessories for different situations

GoPro’s marketing strategy

Differentiat-ion strategy

Product

Online and offline, no self-owned retail stores

Distribution

High, medium and

low price

Price

Sponsoring events,

partnership with athletes and resorts, user generated

content

Promotion

Agenda

Evolution of Action

Camera

Market Assessment

GoPro Background and Timeline

Competition Assessment

Gopro’sMarketing

Strategy for Action

Camera

Competitors’Marketing

Strategy for Action

Camera

Evaluation of GoPro’s strategy

Recommendations

Comparison

High price active

strategy

High quality products

with different features

Low price active

strategy Similar products

with some flaws

YI

Agenda

Evolution of Action

Camera

Market Assessment

GoPro Background and Timeline

Competition Assessment

Gopro’sMarketing

Strategy for Action

Camera

Competitors’Marketing

Strategy for Action

Camera

Evaluation of GoPro’s strategy

Recommendations

GoPro’s strategy evaluation

Mass recall of Karma drones

Increase expenditure in R&D and marketing

Fiercer competition

Repositioning as an "end-to-end hardware and

software storytelling solution."

Agenda

Evolution of Action

Camera

Market Assessment

GoPro Background and Timeline

Competition Assessment

Gopro’sMarketing

Strategy for Action

Camera

Competitors’Marketing

Strategy for Action

Camera

Evaluation of GoPro’s strategy

Recommendations

Recommendations

Expansion to professional

use

Be the industry leader in product quality

More focus on Asia Pacific

market

Cut costs on inventory and

marketing (inventory

management, online sales)

Develop smartphone-camera.

Work with smartphone companies to integrate

GoPro’s camera into the phones, and have its name listed on the

phone, near the camera.

Key takeaways

● Quality is the key to GoPro’s success

● Expansion to new areas is needed due to tense competition and market saturation

○ Consider Asia Pacific for more focus

○ Consider smartphone-camera

○ Consider market for professional uses

● Cut costs by inventory management and online sales

Thank youQ&A