FAQ - New Privacy Policy. With this in mind, let us turn to valuation & earnings. Written by Job Details. Feel free to connect with us if you need business research. From IP to marketing techniques, GoPro's niche expertise has enabled it to cement its position within the market and keep competitors at bay. Compex is the nation's leading record retrieval provider. Liability laws in different countries are different and GoPro, Inc. may be exposed to various liability claims given change in policies in those markets. To this day (for better or worse) GoPro remains largely focused around their hardware. GoPro is the leading company, which deals in . Also, with the company worth just $216 million after subtracting liabilities from assets, the liability of a $218 million long-term debt load constitutes a significant burden. SWOT analysis is a vital strategic planning tool that can be used by GoPro, Inc. managers to do a situational analysis of the firm . Strong Brand Portfolio Over the years GoPro, Inc. has invested in building a strong brand portfolio. ). In addition to this, days holding inventory spiked in the first half of 2020 as the company was negatively impacted by COVID, however, total inventory and days holding inventory have both significantly dropped in the second half of 2020 (. The GoPro brand is synonymous with action cameras as the Nick Woodman-led company essentially created this market by launching the first commercially available action camera back in 2002. To this day (for better or worse) GoPro remains largely focused around their hardware. Heres how to play the largest growth opportunity in history, Forget Apple! And in 360 and virtual reality cameras, the company is up against well-funded competitors like Samsung that don't want to miss out on the market. This forced focus has tremendously limited growth at GoPro since they cannot leverage their know-how in any aspect other than by continuing to develop increasingly better iterations of the same product. Motley Fool Founders Issue New Stock Buy Alert, Forget GE! Buy Professional PPT templates to impress your boss. The new technology provides an opportunity to GoPro, Inc. to practices differentiated pricing strategy in the new market. Despite the competition, GoPro has maintained strong market share. SWOT analysis an immensenly interactive process and requires effective coordination among various departments within the company such as marketing, finance, operations, management information systems and strategic planning. However, investors cannot forget that Apple and Samsung operate exponentially larger ecosystems than GoPro. Competitive advantage refers to the ways that a company can produce goods or deliver services better than its competitors. ***It is a broad analysis and not all factors are relevant to the company specific. That being said, I do not think that doubling-down on D2C can be their main source of growth. Compare GoPro to its competitors by revenue, employee growth and other metrics at Craft. The Motley Fool has the following options: short January 2019 $12 calls on GoPro and long January 2019 $12 puts on GoPro. In addition, GoPro's Price/Book ratio (mrq) is of 7.98, which is far higher than its digital-camera competitors' average of 1.52 (Yahoo Finance). In the VRIO analysis we can include the disruption risk under imitation risk. This technique included picking particular circumstances, dates, and areas to center their promotions that would create the ideal brand mindfulness. . Tampa, FL. GoPro's market cap is of 1.74B with a price-to-sales (P/S) ratio of 1.928, which is more than double its digital-camera competitors' (Sony, Canon and Nikon) average of 0.885 (, ). New customers from online channel Over the past few years the company has invested vast sum of money into the online platform. Moreover, it uses the technique based on the nature of their associations with customers through promotions that influenced clients to feel like they were a member of a group. GoPro manufactures action cameras, mobile apps, and video editing software. As shares of GoPro Inc (NASDAQ: GPRO) have sunk since its IPO, investors have been concerned about the company's product strategy and ultimately what the company's competitive advantage is.. This is explained by the fact that the pandemic seriously affected GoPro, since retail stores were closed and individuals could not go outside and use their GoPro. The company's net cash position is of $46M, which is by no means a crazy cash position, but I would consider it to be a solid cash position given the GoPro's recent troubles. Opening up of new markets because of government agreement the adoption of new technology standard and government free trade agreement has provided GoPro, Inc. an opportunity to enter a new emerging market. Going D2C also enables the company to take control of its margins. Management did not explain why these changes occurred. T, 2017. The Motley Fool has the following options: short January 2019 $12 calls on GoPro and long January 2019 $12 puts on GoPro. Rareness of the Resources GoPro was able to achieve such high levels of success by having "first-movers" advantage in the space. By leveraging user-generated content (UGC), GoPro has been able to solicit and repurpose content showing real people using its products. Unless you require a camera that can withstand shock, a cell-phone camera is a perfectly acceptable replacement for a GoPro. ET, 3 Reasons Investors Should Zoom In on GoPro Stock, The IRS Is Urging Millions of Early Filers to Amend Their Tax Return, 1 Warren Buffett Index Fund Could Turn $100 Per Week into $1 Million, 2 Stocks That Could Join Apple, Microsoft, Amazon, and Alphabet in the $1 Trillion Club, Join Over Half a Million Premium Members And Get More In-Depth Stock Guidance and Research, Fool Steve Symington highlighted a few months ago, Copyright, Trademark and Patent Information. Copy and paste multiple symbols separated by spaces. Over the years, GoPro has attempted to launch a media division, a drone and a VR-camera, all of which failed (Sun, 2018). GAAP losses nearly quadrupled to about $67 million during the same period. This should open a window of opportunity for GoPro, Inc. in other product categories. Learn More. ). (1995) "Looking Inside for Competitive Advantage". New environment regulations under Paris agreement (2016) could be a threat to certain existing product categories . This material may not be published, broadcast, rewritten, or redistributed. This information should be brief and relevant to the discussion of your assignment and thus may include ownership, history, size, business scope, major products/services, and major markets of the organisation. The improved resolution gives GoPro a competitive advantage for professionals and enthusiasts who want to shoot photos or videos under such conditions. Moreover, with Apple and Samsung producing more products that are better designed for extreme activities, GoPro's competitive advantage faces a constant threat. Amazing Business Data Maps. The subscription, which costs $49.99/yr, offers unlimited cloud storage, access to their video editing app Quik, livestream capabilities, free "no-questions-asked" camera replacement and discounts on all accessories and products (, GoPro is undeniably the market-leader within the active lifestyle camera industry. If its technology doesn't fall behind others entering the market, it could maintain a strong position in action cameras with a good brand alone, but that may not be enough for investors. GoPro (NASDAQ: GPRO) stock benefited significantly from the 2020 stock rally. Although not perfect competitors, the comparison is still worth noting as GoPro seems to be in-line with its competitors (at least when using GoPro's quarterly P/E ratio). 2. From a technology standpoint, GoPro doesn't really do anything that another company can't copy, which is why its brand advantage is so important. VRIO Framework was first developed by Jay B Barney to evaluate the relative importance of resources to the firm. According to. (adsbygoogle = window.adsbygoogle || []).push({}); 10 stocks we like better than GoProWhen investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. In 2020, GoPro's sales coming fromgopro.comincreased from 12% to 30% (CCM). ***It is a broad analysis and not all factors are relevant to the company specific. This is the detailed SWOT Analysis of GoPro which covers the internal and external audits of company based on the important key factors such as market share, brand value, customer satisfaction, financial position, marketing strategy, competitors, economic conditions and others. As it stands, GoPro does not have many competitive advantages. By continually being in the market and hardly nowhere else, the company has built-up a large array of knowledge relating to its niche. As shares of GoPro Inc ( GPRO -0.83%) have sunk since its IPO, investors have been concerned about the company's product strategy and ultimately what the company's competitive advantage is.. The VIRB line from Garmin arguably has equal features to the Hero 5 line from GoPro, and Kodak is doing some interesting work with 360 video that could compete with GoPro's advanced products. The Motley Fool recommends Garmin and recommends the following options: short March 2023 $130 calls on Apple and long March 2023 $120 calls on Apple. In addition to this, GoPro has also been made irrelevant by the incredible advancement in cell-phone camera technology. GoPro is clearly spending a lot more money to promote their website across the internet. Even though GoPro, Inc. is spending above the industry average on Research and Development, it has not been able to compete with the leading players in the industry in terms of innovation. New technologies developed by the competitor or market disruptor could be a serious threat to the industry in medium to long term future. ). The launch of the Karma drone really highlights this technology challenge. Good Returns on Capital Expenditure GoPro, Inc. is relatively successful at execution of new projects and generated good returns on capital expenditure by building new revenue streams. This problem has been solved! Check out- GoPro, Inc. PESTEL / PEST & Environment Analysis However, in March 2017, the company faced challenges due to product failures and increased competition, and the introduction of new products in the market. Market-leading video-editing software include Adobe (Premiere), Apple (iMovie), Sony Vegas, and a, Nick Woodman founded GoPro and has served as the CEO of GoPro for 16 years. When the customer consider activity sports, regardless of whether on TV or in particular life, brands like GoPro appear to dependably be around the activity. [Online], Available at: https://www.fool.com/investing/2017/03/27/what-is-gopro-incs-competitive-advantage.aspx, [Accessed on: 16th January, 2018]. I'd like to see a GoPro marketing campaign focused on the achievements/incredible moments of everyday people, not just elite athletes. The Strengths-Weaknesses-Opportunities-Threats (SWOT) Analysis / Matrix helps the managers of the GoPro, Inc. to develop four types of strategies: The central purpose of SWOT matrix is to identify the strategies that a firm can utilize to exploit external opportunities, counter threats, and build on & protect GoPro, Inc. strengths, and eradicate its weaknesses. Growing strengths of local distributors also presents a threat in some markets as the competition is paying higher margins to the local distributors. Looking Inside for competitive advantage '' us turn to valuation & earnings * * * It... And areas to center their promotions that would create the ideal brand mindfulness the same period technologies! 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