Introduction companies with replicated products. Unless Go


GoPro is one of the American Origin
Electronic Technological company founded by Nick Woodman in 2002. Entire
Business focus on a product line, which comprises of Variety of action cameras and own mobile apps and software.
Company has
international reputation and supplies their products into mainly regional
Markets of American, European, Middle East, China and India by 2013. Total
sales revenue of the company within 2010 – 2013 could be reported as 10.5 MN
USD further GoPro Products Revenue estimation hits the point of 1.19Bn USD on
Revenue line within the Period of 2010 – 2013. Surviving Strategy at the
starting point of the company is much interested as they have been acquired several
other products and become partners with sevaral other organization such as CineForm, Periscope for live streaming etc.

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Market Share of the GoPro by the end of 2013 is as follow.


















01.   Critically discuss the differentiation strategy
adopted by Gopro in Becoming a global phenomenon in the consumer electronic


a.       Very
niche Market

While the larger
camera companies’ products focus on the overall massive market, GoPro focuses
on a niche market. Image Base Motion Capturing Technology Industry IBMCT
is highly competitive market segment where oligopoly is ran by leading
technological companies including Sony, Panasonic, and Canon etc.  the time 
GoPro enters in to the Market they did not have much competitive
advantage but they have focus on  a very
specific Market segment where other leading competitors does not address well
so called action camera industry or sport genre. This strategy reward them in
many ways to survive among the competition driven by leading companies in
addition to that  This strategy works at
the starting point to reach and established the Market.

establishing a very specific customer base for the category called sport genre/
Action cameras by GoPro. Lots of replicate products are launched by the
competitors to catch the Market thus GoPro Made another Strategy which works to
them to survive further that they have move from Highly competitive Image
Base Motion Capturing technology Industry IBMCTI to less competitive
industry segment called high definition video devices. Further narrowing
and go deep into the chose market segment works as strategy for the Go Pro
every time.











b.      New

Even focus on
very niche Market was not useful in surviving from the competition driven by leading
companies with replicated products. Unless Go Pro introduce innovative new
features, which compensation them to maintain existing customer, base and
attract potential customers towards them. Go Pro knows that the standalone
cameras do not reward them unless they gives some features which differentiate
them with general standalone cameras thus they introduce features such as Cloud
Connectivity, Digital image stabilization, Voice Control, Attractive user
Interface and longer Battery life. In addition, time to time they have change
product capabilities e.g their new 360* array features 16 cameras that can
capture the full 3D experience.








release replicated products in to the market in many forms to grab the Market
share holding by GoPro  in recent years,
but all the attempts fails because GoPro use two feature popularly known as
Memory Capacity and Better Video Resolution as weapons against in short term

c.       Reasonable Price

Most of the equipments
presented by GOO PRO are relatively reasonable in comparison to their
facilities. But the replicated products which having similar facilities are
priced little bit higher compared to GoPro products. Reasonable price is one of
the strategies that they have used to differentiate their own product among
competitors. Price schedule given below illustrated the difference.








d.      Marketing Strategy Pulsing Strategy

GoPro tries to differentiate themselves among the competitors in the
industry by building strong customer relationship via the advertising campaigns
for which they are using one of strategy called pulsing strategy in which they
use specific time, date and location to make there advertisement. Such strategy
helps them in many ways such as increasing their brand awareness, optimizes
their cost and benefits when allocating resources and etc.Shows an example of
time relevant allocation of advertisements.








Second strategy is improving quality of relationship with customers
via advertisement by providing a platform to think them like they were part of
the community. GoPro utilize famous athletes and sports celebrities in
advertisements to carving an image of their products in the mind sets of the
customers by which most of people wanted to be part of such community. In
addition to that GoPro is diverting considerable amount of their revenue to
launch and maintain a social platform where anyone could share their experience
via videos images and blogs in which a deeper relationship and image of the
product improve. Capital allocation of GoPro for Advertisement can be
illustrated as follows.









Critical Analyses the Market
Mix adopted by Gopro in establishing the Brand


a.       Price

One of the key elements of Marketing Mix is
price which is highly debpnedable on the quality of a product as customers
think much on quality rather than stick on a price tag, they always wanted the
best. GoPro price tags are neither too high nor too low compared to its
competitors in the industry and they always maintain an average price range of
USD 200 – USD 450 in such affordable range of price, everyone could acquire
higher quality camera to capture their priceless moment and become a legend.
Lowest camera anyone can buy in the market in the brand Name of GoPro is Hero 3
White Edition at USD 199.99 and the expensive one is Hero 6 at USD 469.
Furthermore the organization provides free shipping around the world in
seasonal offers to encourage the sales. Most expensive camera in the market is
belongs to GoPRo which popularly known as Hero 6 Black at around USD 450 is not
expensive compare to its competitor Sony FDR at USD 429 compared to facilities
offered. Go pro camera is fully vice controllable and Full LCD display etc.
makes it more attractive on such price called expensive. With comparison of its
own models the newer, more expensive models have drastic
improvements from their predecessors, and as a result, the slight increase in
price does not seem to slow down sales.


b.      Product

Second element is product which
composite the marketing mix by which several effort could easily made to catch
the target Market continuously. GoPro provide vide variety of Product line
includes HERO cameras, GoPro KARMA & GoPro KARMA Grip, Accessories Video
editing soft wares etc. The company developed GoPro Studio, simple video
editing software to edit camera footage It was reported that GoPro intended to
also become a content provider, also with a new app for the HERO5 called GoPro
Quick to share, and edit videos easier. Also you can edit and shoot photos and
videos with the GoPro app released in 2015.

of the product is one of the key features which help to popular it among target market. Every action
camera can be used in several ways to capture the moments created by the doer
by mounting it on Accessory suited for the occasion. Accessories covers 3-way
mount, suction cup, chest harness, jaws-type flexible clamp, dog harness,
surfing mount, etc. All these accessories can be purchased based on desire of
the consumer. Design and other features also made good attraction towards the
product from the customers. Memory capacity and Video Quality safety are
unbeatable features  in comparison to
replicated products to Gore in the Market.

little device is capable of shooting full HD video; it is shockproof and
entirely water proof.  It is small size,
lightweight and rugged body allows it be versatile and usable across the board
in all action, adventure sports.  All of
their models and a wide array of devices can be purchased online, through their
slick and visually stunning website.

But some
of the bad ground also can be explained in regards to product that these
product are so unique and always focused on delivering higher quality in mean
of Memory capacity and Video resolution only it should be change the design and
physical appearance is worst compared to the Sony and other substitutes in
addition to that some of these GoPro 
Products are not having user-friendly, it has a learning curve which
means a customer need more time to learn how to use camera, and it has fixed
focal length thus customer cannot use it as a DSLR. 

c.       Place

are several places such as online stores, Sportswear outlets, GoPro outlets,
High end Super Markets and etc.  a
customer could use to reach GoPro products. Amozon EBay and Alibaba are the
most convenient sites to reached GoPro products and other accessories may use.
In addition to that several sports ware outlets in UK, USA and Australia is providing
sales opportunity to GoPro as license dealers. Most of the Asian country
depends on highly online markets to reach the GoPro Products.

GoPro provide their own website to buy and get
informed their products efficiently. In
which, the categories of products and what each package entails is very clear
and precise, making it easy to purchase the equipment that suits your life
style online. Online purchase of the GoPro is being
increasing every year by year.







Capturing the moments of
fans and promoting them to attract new customer is
one of the promoting strategy implementing by the GoPro. GoPro maintain a You
tube Chanel where anyone can upload a photo or video he/she capture in an
action performed the content he submitted will show up in the YouTube will  encourage others to to do so this a best strategy
any organization could do. These content submitter may be a farmer or athletes
it does not matters to GoPro they needs peoples encouragement to capture their
best moments to show other what they can do with that particular camera through
the YouTube channel.

Partnering with another team is another strategy used by GoPro. Presently they are
promoting their accessories and cameras by using them in Red Bull stunning
shows in capturing stunning moments of bike riders, hikers, Skive divers etc.
this type of sponsorships made GoPro to show the capabilities of their cameras
via social medias, TV channels etc. and able to create a huge customer base for
the products. Most popular captured moment of the GoPro was Felix
Baumgartner’s infamous jump from space.

GoPro does
not promote sports its promote regular life they have using advertisement shows that the GoPro not
only made for Actions but it can be used in capturing life moments as well
which are remarkable in the sense for an example GoPro has advertisements  on How fire fighter works with his job as
well as a general daddy using the camera for capturing his little baby going to
sleep etc. this how GoPro address their customers and maintain them they shows
what customer wants to do with the product offered by GoPro.

investments on Social Media, GoPro
provide their own social media platform for the user to publish their own
creation using GoPro cameras. And always maintain a Facebook page where more
than 10518406 like hits.  Their Twiiter
Account has 2.29 MN followers and 38.9 million viewers for their YouTube
channel. GoPro’s Social media coverage can be presented with the picture here










Critically discuss the
company’s global distribution challenges in penetrating Asian Markets

Currently go pro is maintain
market in Globally includes India, China, United States of America, European
Countries, Middle East and Africa in varying extent and capacities. Most of
these countries  except United States of
America, European Region are depend on the online market through E-commerce
sites popularly known as Amazon, E-Bay, Alibaba etc. several chalanges are
confronted by GoPro when penetrating the markets such as Africa, Asia  where they far from their local market
conditions. These issues can be detail out as follow,

Lack of Logistic facilities

Most of the countries in Asian
region are falling within the category of developing country where the logistic
infrastructure is not much affordable to reach the customers even online
purchase is available. This deficiency impact on most of the technological
companies, who are not having their own outlets at local level in the Asian
countries to reach the customers effectively .in such instance international
technology companies like GoPro could not do nothing to grab a Market share
unless having own outlets, franchise at local level. There are few
international technological companies who effectively address the issues by
establishing authorized dealers and franchises in order to promote their
products in Asia e.g.: L.G, Abans, Panasonic and etc.

Lack of Digital infrastructure

Even if the physical
infrastructure is in good condition some of these Asian region countries are
below the level of internet facilities thus they are not available in the
online market to purchase the products launched by the GoPro. Internet penetration
in the Asian region is below the 50% by 2017 according to internet World Stats.
Thus this will definitely has some impact in penetrating the Asian Markets to
GoPro Products.












 GoPro not Address the Income of the People

As per International
Monetary Fund World Economic Outlook (October – 2016),
per capita income of a Asian is about USD 6001 if it is divided in to Month he
will be have about approximately USD 500. Therefor GoPro Camera is not much
affordable to Asian guy who is having such lower income above mentioned. There
are several other countries where the per capita income is much high than Asian
average which includes Japan, China, Morocco etc. If the Gopro could change his
price suited for local condition with suitable facilities they could penetrate
Asian market where lot of potentials are available rather than stick on already
matured market such as America, UK etc.

Asian countries are cash based economies

Most of the Asians
are not willing to use digital payment method as they do not trust on them they
always believe in cash payments this is another issue where the local level
outlets and Franchises of the business not available.

Deficiencies in Advertisements

GoPro used all western cultures sport
celebrities and people in their promotion in Asian region this will not match with
the attitude of the people in Asia. Further Asian region composites two third
of land mass of the world and 60% the world population such large market may
require massive advertisement campaign with properly addressing to their
cultural deficiencies at local level. Company like GoPro cannot invest for
massive amount for advertisement campaigns. 

Older Population, less interest in Advanced Products

Elder population in Asian region
is rapidly growing and will be hit the point 923 million nearly by the middle
of this century according to various sources including World Bank. Such
population does not have interest or knowledge to handle a camera or any other
product like Gopro which is highly designated for special use. Thus GoPro would
not be sustained in the Asian Market if they address well in an effective











appropriate strategies they can adopt to face future challenges from the
cheaper alternative brands entering into the Market.

established Brands and products have risk of competition of substitute product
enters into the Market at a cheaper price with similar capabilities. This issue
arises because of the technologic advanced, incapability of original brand to
distribute their products globally in effective way, and globalization etc.
this competition can be seen with the GoPro as well, for example Gopro
Experience the competition made by cheaper brands called Akaso EK7000 4K
Action Cam, PicTek Pictek 2016 Action Camera and etc.

GoPro can follow two paths – strategy called Offensive Strategy, Defensive
strategy or both in varying degree suited to the occasion. In a defensive
strategy GoPro can differentiate their product from grass root level to compete
with substitute even this works only for few times. Other option is having an
offensive strategy which means GoPro can establish low cost product their own.
Both of this strategy will work only if the GoPro can generate synergies
between the existing businesses and new ventures.

that wake up to that fact usually change course in one of two ways. Some become
more defensive and try to differentiate their products—a strategy that works
only if they can meet a stringent set of conditions, which I describe later.
Others take the offensive by launching low-cost businesses of their own. This
so-called dual strategy succeeds only if companies can generate synergies
between the existing businesses and the new ventures. Following recommendation
can be given in detail to overcome the threat driven by cheaper substitute.

needs identified the price levels of the substitutes in the market and match it
with the facilities and find whether they could provide that facilities on
suited quality at same price what substitute are offered. If such price
reduction cannot be done without losing quality it is recommended not to do so
and maintain the price level now up to.

needs to diversify their product polio without stick onto one genre so called
action/sport genre. GoPRo should expand their products which suited for normal
users as well. And also have potential to enter into the mobile/smart phone
industry to give the accessories in terms of specialized sports wear

If GoPro
knows that the cannot win the price war they attempt to differentiate their
products in the form of cool Design, Sell experiences, establish brand
community, continuous innovation, offer unique product mix and etc.

needs to promote their product in partnering similar sports giant who host the
events like International Ice hockey Championship, Stunt shows, Polo and other
sports etc. in addition to that GoPro can sponsor the travel programs where
most of the people put interest.

 Most of GOPro products transacted in the
online Market which is not fully accessible in some of the Asian and African
Market in such instance goPro need to be made franchises to sell their products
and increase the market share at local level.

campaign should be suited for local conditions and to be show local faces
acting in it which helps to attract the local Market fairly. Celebrities, local
specialties needed to be highlighted other than using same advertisement in
everywhere to catch the local Market.