GoPro is a high-tech sports action camera brand which has the durability to use anywhere from underwater or in the mountains.They are best known as the stable gear for people who want to capture their life and share the experience with others.Users can find the meaning and fun by capturing the essence of their adventure.
Porter’s five forces analysis
Threats of New Entrants
The threat of new entrants is low because of the expertise and capital required in the digital camera industry.New entrants need high technologies,equipment and strong expertise to manufacture high quality cameras.The major issue for new entrants is how to convince customers to buy their products.Companies with strong expertise and large research and development budgets have the resources available to quickly enter the industry.
Bargaining Power of Suppliers
Photographic equipment industry highly depends on third party suppliers,due to the limited amount of suppliers that offer capable electronics.The power of suppliers is high, making industry profitability become lower as companies are subject to supplier’s prices.GoPro has sole source suppliers among its third party suppliers.
Bargaining Power of Buyers
GoPro is the leading brand in the action camera industry, allowing them to gain a huge profit for their products.However, the industry appeals to a lot of companies with competitive products,which puts pressure on GoPro profitability in the long term. The customers want to buy products available in the market by paying the minimum price as possible.They are price sensitive as there is low differentiation among products and a lack of diversity of choice.
Threats of Substitute Products or Services
The threat of substitutes to cameras is smartphones,which can perform similar functions and are widely owned.The rapid development in smartphones is the reason for the decline in the global market share of digital cameras.The value of smartphones in form of convenience and availability
Rivalry among the Existing Competitors
There are several competitors in the action cameras market,for example, Sony, Nikon,Fujifilm.These products are similar to GoPro, with high quality and function.All of them are strong in their technological and financial capabilities making the competition intense.
Marketing strategy analysis
There is no doubt that GoPro is the leader in the market,with its largest market share,reasonable price,technological advance and distribution coverage.As a leader,GoPro follows the strategies :
GoPro knows the relevance between audience and products, so they use the internet to create interesting and meaningful contents with their audiences and followers.They encourage users to post their video on social media and share the high quality video on the GoPro channel. Therefore, GoPro builds a close relationship with their customers. This user-generated content shows the superior quality of its product and taps customers’ passion for product, which helps GoPro build customer loyalty.
Besides, this marketing strategy means that they don’t need to rely on traditional advertising. They can earn more profit by spending less on advertising.
GoPro has differentiated themselves by having the highest quality video in the most durable body at an accessible price. Their small and lightweight footprint, combined with superior durability allow the camera to be used where traditional cameras and mobile devices can’t.
GoPro has developed many exclusive relationships with specialty retailers ( Best Buy, Walmart , and Target) , who help them develop a brand identity and sales channel. The products are also available on online shop such as Amazon and their own website.
GoPro’s target market is large,it not only pays attention to attracting adventurers and professional photographers,but also consumers of all ages and interests.They attract potential customers by sharing the best video on their social media.
GoPro marketing strategy emphasizes user-generated content because it shows the brand value that customers are passionate about. It also gives customers the opportunity to have their own audience on social media. By using this strategy, GoPro turns those audiences into brand advocates.
203003–2Y MSC–Paris Campus
Professor: Sébastien Girard