Our GoPro SWOT analysis focuses on the action sports camera brand's Strengths, Weaknesses, Opportunities and Threats as we're heading into 2023.
If you have a habit of scrolling on social media, you must have seen many videos and pictures shot from a POV angle. I find such content very cool because it helps you connect with what's happening.
At times it feels like you are experiencing everything that is going on. However, for the longest time, I had no idea how these POV shots were taken until I got aware of the GoPro.
GoPro is a technology company that specializes in making action cameras that are widely used to capture adventurous and action shots. Besides the action cameras, GoPro is also known for providing mobile apps and video-editing software.
GoPro is not one of the pioneers in the camera industry. However, it has made a name for itself as if it was around from the start. GoPro cameras are widely used in sports, trekking, racing, swimming, and other activities.
Since GoPro is considered the pioneer of action cameras, today we have decided to conduct a GoPro SWOT Analysis. However, before we move toward the SWOT analysis, let's look at the exciting journey of GoPro.
The GoPro traces back to 2002 when a guy named Nick Woodman founded GoPro because he wanted to film himself while surfing. Since Nick indulged in many sporting activities like surfing, skiing, and motorsports. He always felt that no camera could capture what he was experiencing.
To fulfill his wish to film himself in action, he created a company that manufactured action cameras. Unfortunately, it took him two years to sell his first camera. However, as digital cameras hit the camera industry, Gopro shifted its operations and made GoPro's first all-digital, video-ready product in 2006.
In between, iPhone diverted GoPro's customers by offering the iPhone 3GS with a good camera quality in 2009. However, a year later, GoPro launched a 1080p wide-angle lens. In 2011, GoPro carried out its first acquisition by acquiring Cineform.
The action camera brand announced going public in 2014. It sold 17.8 million of its shares through IPO. In addition, GoPro acquired a couple more companies in the coming years to increase its market share.
In 2021, GoPro generated $1.16 billion in revenue. However, the brand is experiencing a fall in its sales currently. GoPro reached maximum sales of 6.58 million units in 2015. However, in 2021 GoPro sold only 3.15 million units.
Since GoPro is not experiencing a boom in demand, it has also laid off many employees. The maximum number of employees that GoPro ever hired was 1,552 in 2016. Whereas currently, it only employs 766 people.
Now that we have discussed the history of GoPro and how it evolved over the years to reach where it is today let's conduct a GoPro SWOT analysis. However, before doing that, you should know what SWOT analysis is.
A SWOT analysis is a technique professionals use to analyze the internal and external factors that impact an organization's operations. A SWOT template reflects the organization's strengths, weaknesses, opportunities, and threats.
The results of a SWOT analysis help us make future policies by looking at the factors that affect an organization's operations. Now that you are well aware of what a SWOT analysis is let's proceed further and carry out a GoPro SWOT analysis.
Strengths of GoPro
Strengths are the strong points of an organization that helps it in competing with other organizations. The success of an organization is dependent upon the number of strengths it possesses. Let's have a look at what strengths GoPro Possesses.
1. Strong Brand Value
Any brand would try to have a strong brand value because it leads to higher revenue and increased profit margins. However, It is not easy to attain strong brand value.
GoPro is the name that became synonymous with high-action, extreme sports. It was the first company to bring first-person perspective and POV action to viewers across the globe with its near-indestructible mini cameras. This capability and a great marketing strategy ensured that GoPro was featured in many heart-racing scenes.
In 2019, GoPro was the most popular consumer electronics brand in the US, with 93.8 million cross-platform actions on social media brand content, leaving PlayStation behind.
2. Diverse Products
Brands often look to produce diverse products to attract different audiences. This helps them in increasing their customer base, as well as their revenue.
The GoPro range of action cameras is wide and varied. GoPro's hardware range is extensive, from ruggedly built models capable of submersion in water and being thrown down a rocky cliff to high-tech drone equipment and image stabilizing gear. Its software capabilities are also incredibly powerful.
3. Online Sales
As the world is getting technologically advanced, people are switching from physical shopping to online shopping. Since customers find it more convenient, suppliers have to follow their lead. Looking at this trend, along with many brands, GoPro also established its online store.
Establishing an online store is turning out to be fruitful for GoPro since its revenue through online sales is increasing daily. This will motivate the brand to pay more attention to its online store.
Weaknesses of GoPro
Every brand has some weaknesses that keep it from achieving its true potential. However, weaknesses must be converted into strengths if a brand wants to grow. This section will highlight some of the weaknesses of GoPro.
1. Low Revenue
Businesses are always trying to increase their revenue because it is essential for a business to do financially well to stay in the market in the long term.
Although GoPro has been operating in the market for quite some time now. However, it generates a low revenue. In 2021, the brand generated revenue of $1.16 billion. However, in the same year, its competitor, Nikon, generated revenue worth $4.74 billion.
GoPro needs to increase its revenue by increasing its sales, or it can face serious financial problems.
2. Low R&D Expenditure
Innovation is very important for all businesses because that's what differentiates the product of one business from the other. However, to innovate, it is essential to spend money on R&D.
GoPro is a technology company that makes products for the action sports industry. Its main differentiator is its technology, which has kept it ahead of competitors. However, to further consolidate its position in the market, GoPro has to increase its R&D expenditure. In 2021, GoPro spent $123 million on R&D.
3. High-Priced Products
Brands try to keep the prices of their products at a reasonable level so that people buy their products. Although it varies from product to product. Some brands target the high-paying class, which is why they keep their price above average.
GoPro is a premium brand with a premium image, meaning it can charge more for its products. This is great for consumers who are willing to pay more for high-quality products, but it doesn't work so well for consumers who don't want to spend as much money on their cameras.
Opportunities Present For GoPro
Every business gets opportunities from the market to expand and grow its operations. Some businesses act timely and make the most out of such opportunities. While others fail to grab them and struggle in the future. Let's take a look at what opportunities are present for GoPro.
1. Start Manufacturing Smartphones
The smartphone market is growing at a daily pace. In 2020, the revenue generated from the global sales of smartphones was $409.1 billion. On the other hand, GoPro is operating in the camera industry, where its sales revenue is constantly falling.
Since GoPro has experience in technology and manufacturing, it can try its luck by launching a smartphone. Moreover, GoPro has a lot of experience in the camera space. With its existing offerings, GoPro should be able to compete in the smartphone industry. This will give GoPro an advantage over other smartphone manufacturers.
2. Increase The R&D Expenditure
To make their place in the market, every brand must innovate. However, innovation can only be done by spending on R&D. GoPro currently spends an insignificant amount of money on R&D.
However, it now has an opportunity to increase its R&D expenditure. This will help the brand in innovating and increase its revenue.
3. Expand Operations To Developing Economies
Businesses move their operations to develop economies to cut down their operating costs. By doing so, they manage to enjoy high profits. Since GoPro is observing a fall in sales and looking for ways to cut down its expenses, this is an excellent opportunity for GoPro to shift its operations in a developing economy.
Operation in a developing economy will cut down the costs of GoPro. As a result, the brand will experience higher profits.
Threats Faced By GoPro
Threats are the worries through which businesses have to deal. The threats received by a business are from the external environment. This section will analyze some of the threats faced by GoPro.
1. Global Recession
After the pandemic and the conflict between Russia and Ukraine, the world is expected to experience a global recession. Recessions are always painful for businesses. It lowers people's living standards, and the sales of businesses fall.
If a recession occurs anytime soon, GoPro may have to exit the market because the current financial situation of GoPro is already a lot weak.
2. Conflict Between Countries
Business always prospers in political stability. However, if there is political instability and countries are cutting off trade with each other, like recently, many countries have imposed sanctions on Russia. In such cases, businesses suffer.
Since the political temperature has been boiling up after Russia invaded Ukraine, GoPro feels threatened by the current political scenario. In case of political instability, GoPro operations will suffer since it might lose customers from a region.
3. High Competition
Businesses always try to avoid operating in markets with high competition because competition leads to price wars, resulting in the loss of profits. Like any other industry, the camera industry is also very saturated and competitive.
GoPro has to face a lot of competition from all directions. The action camera brand has to compete with brands like Nikon, Kodak, Sony, etc. While competing, GoPro has to constantly innovate, or else the rival brands can snatch GoPros market share.
GoPro SWOT Analysis: Final Word
Today's article would have been a treat for our tech-savvy and camera-lover readers because, in today's article, we talked about one of the most innovative action camera brands, GoPro.
This action camera brand joined the industry 20 years ago, and today it's competing with some of the giants of the industry. GoPro is known for its various action cameras, video-editing software, and mobile apps.
Recently, the demand for GoPro cameras increased significantly when people realized how cool it looks to record an adventurous video while doing a sport or any other activity. Soon after discussing what GoPro is known for, we learned about the history of GoPro and discussed how it evolved over the years.
Then, we shed light on what SWOT analysis is and the purpose of conducting one. Then, after giving our readers some clarity, we proceeded further and carried out the GoPro SWOT analysis.
Through SWOT analysis, we learned about the strengths, weaknesses, opportunities, and threats faced by GoPro. Moreover, the SWOT analysis also highlighted some of the internal and external factors that are responsible for impacting the operations of GoPro.
The results obtained from the SWOT analysis can also be represented with the help of a SWOT matrix. Now that we have reached the end of this article, I hope you have enjoyed reading it since this article discussed the operations of GoPro with you and also made you aware of how to conduct a SWOT Analysis.
Although you shouldn't be confused, if you feel the need to revisit the concept of a SWOT analysis, do look at more examples.
