ORGANZATIONAL ANALYSIS OF GoPro Inc 2
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GoPro Inc Organizational Analysis
GoPro Inc Organizational Analysis
Contents
The executive summary 3
A brief Description of the company 3
Organizational strategies 4
The cost leadership 6
Differentiation 6
Focus strategy 7
The aim of GoPro Inc. Company in adopting Michael Porter’s Strategies 7
The company’s goals and objectives 9
Organizational structure 10
External environment 12
Internal environment 16
Organizational design for an international design 19
A brief overview of products and services 20
Information technology and control system 21
Organization Size and Life Cycle 24
Organization Culture 28
Ethical Values 29
Innovation & Change 31
Decision Making Process 33
Conflict, Power, Politics 35
Recommendations 37
Bibliography 41
The executive summary
The paper seeks to explore the GoPro Inc. Company. GoPro is a technology company based in the United States of America. The company was founded in 2002 and has been operating regardless of the changes in the market, preferences, and tastes. The company engages in business practices, from manufacturing action cameras to mobile apps.
The organizational analysis aims to obtain in-depth information on the general company profile while analyzing its strategies to sustain its position in the competitive market. In addition, the paper seeks to explore how the company structures its operations to realize stable sales and the external and internal factors that may impact organizational functioning.
According to Miles and Snow’s organizational management tools, the company falls within the prospector aspect. The company adopts the cost of leadership strategy, focus, and differentiation as the critical strategic tools to keep its functions in place. The company adopted Porter’s approach for product development. The organization is structured differently from the leadership to the employees. The external and internal environmental factors impact the business operations differently based on its position in the market. The company offers unique products and services in the market.
Based on the findings of this report, the company is likely to continue leading the market because of its advanced technological moves. In addition, the company stands a huge chance of increasing its customer base because of the unique products it continues to innovate and invent. Furthermore, the company has special strategies that align with its general objectives; hence, it stands a good chance of thriving against competitors.
A brief Description of the company
GoPro Inc. is an organization that deals with designing, developing, and marketing cameras and mounting and accessories services. The company offers other application services such as desktop applications, cloud-based subscription services, and mobile applications that enable it to capture, manage and share relevant content.. The company has its ready markets in the United States of America and Europe, selling directly to independent specialty retailers and mid-market retailers through the e-commerce store. Furthermore, the company has over thirty-five distributors in the international and domestic markets. GoPro Inc. Organization is based in California in the United States of America.
The GoPro Company deals in cameras and Drones, and the Cameras are of the GoPro brand and the Hero brand. Its leading service, however, is the GoPro subscription service. Its revenue stands at $1.2B in the year 2022. GoPro Inc. is one of the largest companies globally and a producer of the most versatile cameras worldwide. Nicholas Woodman founded the company in 2002 and served as the company’s C.E.O. The company has a total of 758 employees across nine locations in 2021. The company’s number of employees served as a measure of financial performance evaluated through the operating cash flow without capital expenditures and expressed on a paper basis.
Organizational strategies
For GoPro Inc. Organization to succeed effectively in the competitive market requires a strategy. The company does not need to consider its competitive position, but its primary goal is consistently lead in the market. The company has always strived to ensure that its products attract the most significant number of consumers possible. The company adopts and applies Miles and Snow’s organizational strategy tools to safeguard its strategies and align with its goals. Through the application of Miles and Snow’s organizational strategy tools, the company provides that all the actions it undertakes are structured towards the desired result, and this leads to a satisfactory conclusion.. Miles and Snow would have categorized the company as a prospector because it is expected to remain at the forefront of innovation and development consistently. The GoPro Company is in the face of global innovation and development through the improvement of features that make its innovative products unique. Instead of focusing on the products in the market, the company focus on developing unique products to present a change in the competitive market.
Based on the prospector aspect, the company will likely realize a huge success regardless of the challenges. However, the misses are likely to be there. The goal remains to have the hits outweigh the misses. Through such a strategy, the company stands in a better position to innovate effectively in the future.GoPro Inc. company falls into the prospector category because it is a technology company and must be innovative. Most technology companies tend to push their ways to establish new product developments. A competitive prospector strategy focuses primarily on product innovation, increased search for new market opportunities, and how to capture the market effectively.. Through this strategy, GoPro Inc. company always looks for new market opportunities, analyzing the trends in production and customer preference and creating a design that best suits the demands through increased innovations. Miles and Snow would have further classified the organization as a prospector because of its creative nature. A company can only produce unique and innovative products when it adopts creativity and flexibility because this will enable it to thrive better in a market comprising fast-developing companies.
The company establishes its strategies by defining its current and future strategy by adopting a guideline that predicts the chances of success. Such techniques give the company a critical perception of its existing operations while defining its current design, the involved costs of leadership, and its general plans for future positioning in the competitive market. The GoPro Company suits under prospector because it is a fast mover in the market, and innovation and thought-leadership facilitate its growth.. However, it is worth noting that the company has a challenge maintaining its position as a prospector because the job requires constant R&D and successful product launches. However, its position as a prospector attracts a series of advantages, such as being a market leader, receiving a high-quality customer perception, and effectively commanding high price points in the market. The only challenge here, however, revolves around the difficulty in maintaining the position.
Porter’s competitive strategy model enables the business to achieve a competitive advantage in the market. GoPro Company, like other giant corporates in the world, approaches the market uniquely to ensure that it maximizes the number of its brand users. Porter’s generic strategies are essential in classifying the GoPro Inc. Company behaviour and in driving the company behaviour. It is, however, worth noting that while analyzing the processes that this company adopts in its operations, it suits better the differentiation strategy aspect of Porter’s generic strategies. GoPro Inc. Company adopts a differentiation strategy because its main focus is to differentiate its products and services from the competitors, satisfying the customers’ demands uniquely.. The company further adopts this strategy by focusing on full product diversity by initiating unique features within the core products. However, it is worth noting that before a company settles for this strategy, various factors require consideration, such as the maturity of the market where the products and services are operated and the critical history of the competitors’ innovations.
GoPro Inc. Company had to focus on what their customer feedback suggested before they opted for this strategy because the move was essential in making critical decisions. Additionally, the company had to evaluate its features and determine whether it was set up to take advantage of new features within the existing strong marketing. The company further had to consider its sales deals and the research and market requirements. Furthermore, there was a need to critically review the management team’s skills, such as creativity, outward thinking, and market expertise. The GoPro Company has realized a series of advantages since adopting the differentiation strategies because the move has opened up several options for the company. It has effectively entered a new market, thereby enabling it to diversify its revenue and giving it an excellent chance to grow existing revenue streams through upsells and winning more deals. Such a strategy has further allowed the company to grow existing revenues through price increases while opening up marketing channels with news about the differentiated features of its products. It is also worth noting that the differentiation strategy has opened the company up to risks.
Michael Porter’s intensive growth strategies apply widely to the GoPro Company because the company is a multinational farm with high recognition in the targeted market segments.. The industry attracts intensified competition, making it difficult for GoPro Company to lead the market without exerting extra effort. In addition, the prevailing business environment has always compelled GoPro brand extension to acquire a critical advantage over others to lead the technological market successfully. The GoPro Company is a global brand and has set its competitive composition based on some vital factors, such as competition, especially in most consumer markets. Accordingly, to handle the competitive market, the company does not only focus on differentiation but also focus strategies and competitive pressure. The company achieves customer base expansions and sales growth objectives by concentrating on the abovementioned three strategies.
The intensive growth strategies that the company adopts to sustain its position in the market include market penetration, product development, market developments, and general diversification.
The cost leadership
Cost leadership revolves around gaining a competitive advantage through lowering the involved costs. The GoPro Company essentially uses this strategy in various consumer markets to maximize the number of users of its products. The company’s primary objective for using this strategy is to preserve its market leadership position through critically established efficient value chain management.. The strategy further allows the GoPro company to expand its market share by targeting various classes of consumers, such as the middle class.. This move makes the most significant proportion of the overall consumer markets mixed in almost all the countries where the company delivers its services and products. Cost leadership remains the best strategy to cater to middle-class consumers’ needs because this group tends to focus mainly on the pricing factor.
GoPro Inc. Company primarily focuses on the affordability and easy access of the products globally. The move leads to increased brand awareness and high sales growth hence a robust competitive advantage in the global markets. The company lowers its production costs to ensure that it charges relatively lower prices while maximizing the supply chain efficiently. In addition, it frequently offers discounts on its products and services to ensure that it attracts and retains the highest number of customers possible. This move further enables it to handle the competitive pressure that its rivals push its way. The reason for engaging in price reductions and discounts is to effectively increase the brand’s popularity while encouraging the consumption of its products. Therefore, the GoPro Company’s adoption of the cost leadership strategy presents various advantages, such as increasing brand recognition, expanding the customer base, and encouraging product and service consumption while achieving sales targets by improving product availability and affordability.
Differentiation
The differentiation strategy aims at building a competitive advantage. The GoPro Company combines the differentiation strategy aspects and utilizes the cost leadership technique to achieve its growth objectives effectively. Differentiation as a generic strategy enables the company to expand its customer base by emphasizing unique product features that better suit the customers’ needs.. GoPro Company mainly uses this strategy to increase its level of innovations while thereby adequately addressing the consumers’ health concerns while using the products.. That is, the company has effectively extended its product line after critically evaluating the consumers’ changing preferences and tastes, uniquely differentiating itself from the competitors and ascending to the scope of opportunities within the industry. Furthermore, combining differentiation and cost leadership strategies has played a crucial role in enabling the company to expand its customer base.
This strategy makes the company’s products stand out and differ from those of the other companies. The company, therefore, uses this strategy as a tool to reduce the pressure emerging from its core competitors. GoPro Inc. Company differentiates its services and operations through heavy investment in the marketing sector, highly upholding the advertisements and celebrity endorsements, thereby standing out against the competitors.. The company further adopts an extensive experience in its marketing and communication strategies, which is not only a differentiation factor but also a unique mark for the brand. Apart from the vast experience, the company also uses a fantastic brand logo to set the differentiation basis. The distinctive brand logo aids in establishing a strong and quality brand image in the consumers’ minds attracting them to the products and services the company offers. Even though the brand logo has gone through a series of revisions, its essence remains unchanged, serving as a decisive differentiating factor. It is worth noting that the company offers a variety of flavours that match the customers constantly changing tastes and preferences. Innovation, however, remains the most effective tool that the company uses to identify the areas that require an adjustment to meet the necessary changes that will enable it to deliver its best in the market.
Focus strategy
The focus strategies enable companies to concentrate their resources effectively on expanding their narrowly targeted segments. While adopting this strategy, the GoPro Company serves a particular market segment in the global market and effectively bases its competitive advantage on niche marketing. The GoPro Company adopts this strategy by focusing mainly on the low cost and offering the best value.. Through the low-cost focus strategy, the company serves the needs of a niche market segment at the reduced cost possible. the best value focus strategy, however, revolves around the taste, size, and design of the product that effectively suits the customer’s needs and tastes and preferences. The company, in most instances, focuses much on product attributes. A move that enables it to revise its branding strategies, thereby bringing continuous changes in the product features and packaging to match the customers’ changing needs effectively. Additionally, the move satisfies the customers’ psychological expectations while maximizing the value for money.
The aim of GoPro Inc. Company in adopting Michael Porter’s Strategies
The company’s primary aim while considering these strategies is to effectively maximize profitability while broadening its market share to ensure its relevance in the competitive market and ensure long-term and consistent business growth.. The company, however, must adopt an intensive effort to effectively implement these strategies, especially in a scenario where the manager considers them a great source of competitive advantage. The company adopted these strategies for a market penetration deal that encourages sales increment within the current customer base. Achieving market penetration meant that the company lowered its prices while using different marketing and proportional strategies to realize increased sales in the existing customer market.
The company had to offer various discounts and deals to effectively run a proportional campaign that aided in achieving sales growth in the same market. Market penetration would further increase sales by lowering the products by heavily adopting a cost leadership strategy. In addition, the company could quickly achieve this by integrating the innovations to set a clear differentiation basis effectively. This move enables the company to expand its customer base even if the market becomes highly saturated. It is, however, worth noting that market penetration becomes expensive when the market reaches a highly saturated point. The ability of GoPro Inc. Company to differentiate its products and services after achieving cost leadership is a growth strategy and a market penetration strategy. Cost leadership and differentiation combinations support the extensive organizational growth demands.
The company further adopted these strategies for product development. The company, however, uses this move as a secondary strategy for achieving its growth objectives. Product development revolves around creating new products or modifying the latest products to match the features that satisfy the customers’ tastes and preferences. The company has been a growth-seeking firm for a long time and adopted product strategies to enhance product development when it realized limited industry and market opportunities. Since its introduction, the company has always aimed to extend the product line, broadening its product arrays. The move has greatly enabled the company to overcome its risks because it can quickly compensate for a threat from one product with the gains received from others.
The company, however, only sustains product development by adopting a strategic objective of increasing the research and development investments for innovative and new product developments. The company has successfully enhanced its growth in the competitive technology industry through product development. Through a cost leadership strategy, the company develops its products by minimizing the involved costs while using the infrastructure while launching its new products.. Even though the company can use any available resources to expand its product line, there is a great need to borrow heavily from research developments and use new technologies to ensure that the new products are innovative and unique.
The new product development approaches that the company adopts include; offering new products that share a close connection with existing product lines. In addition, it develops and provides products and services that effectively resonate with the purchase behaviour of current customers. The company is further strategized to create new products to refresh or reinvent the recent developments. Porter’s strategy enables the company to diversify, which involves entering new markets with new products. The company’s diversification is supported by its cost leadership and the existing infrastructure, making exploring current and new opportunities easier.. The diversification furthers a strategic objective of portfolio expansion through an effective acquisition strategy.
The company’s goals and objectives
The GoPro Company has goals and objectives aligned to its missions, visions, and values. Its mission is to enable individuals to capture their lives, share the existing experiences and pass on the stoke. The statement is based on the experiences that individuals obtain from using these products and the involved services. The company aims to improve its users’ lives while boosting connectivity. The company highly values the memories it creates o its customers. To ensure that they capture the clients in the best ways possible, they engage in the unique creation of quality cameras, drones, and the necessary apps.. Getting products from the GoPro Company accessories makes life fun and more fulfilling for the clients. The company is further oriented towards increasing connectivity by making it easier to share the captured moments vis its established apps. Furthermore, the company has integrated tools that prove that it cares about the general need to satisfy the customers while giving them rich experiences. The company achieves its objectives by establishing versatile and state-of-the-art cameras unique in the competitive market, accompanied by amazing apps and video editing software tools.
The company lives its missions and visions by transforming how individuals share their life experiences. On the other hand, its vision identifies its future reputation and all the strategic ways necessary for the corporation to propel itself towards its projected goals. Increasing the possibilities while inspiring the world are the main components of the visions. In addition, the core values that drive the organization are trustworthiness between the organization and its customers, curiosity, creativity, and future-mindedness that orient the employees towards goal achievements. GoPro adopts various strategies to meet its objective and goals of constant market growth. The company dramatically relies on social media. The company has increased the number of followers on social network platforms, enabling it to penetrate internal markets and realize maximum sales through its online outlets. One of the critical reasons behind its success is that the company and its products offer an opportunity for the users to let others see the product feedback from an individual point of view.
Product innovation is another strategy that the company adopts in fulfilling its objectives. The company has achieved consistent success with both products and the brand image. Its social media platform success played a very crucial role in placing the company on the map as a quality brand, but the company’s innovative techniques enabled it to maintain the position throughout. The company further owes its success to YouTube videos. Plenty of videos keep streaming, and most videos are filmed in GoPro products. The company continues to grow its scales through such strategies. However, these strategies have been effective because they have enabled the company to realize success and expand its customer base.
Organizational structure
The GoPro Company was founded in 2004 by Nicholas Woodman and has been the C.E.O. since then. The organizational business model includes the customer model as a significant component. The company has a mass market business model with an unclear considerable differentiation between the customer segments. The company targets anyone interested in capturing imagery, even without physically holding the devices.. The company has three value positions; convenience, accessibility, and general brand status. The cameras are convenient because the users can easily attach them to themselves hand-free, saving them during demanding occasions such as sports activities. The product has further increased its mainstream through accessibility because they suit individuals of all backgrounds, enabling industries and individuals to capture professional-level images at affordable prices.
The organizational channels are evenly divided because retail sales account for up to 52% of revenues while distribution accounts for 48%. Its retail channel comprises these product specialty retailers, big box and mid-market retailers, and the comprehensive online store that serves the global markets. The company sells its products to over fifty distributors who, in return, sell to foreign markets. It is worth noting that the company promotes its offering by integrating its original content into popping ads across the advertisement platforms. On the other hand, the organization’s customer relationship structure is mixed.. It comprises a self-service component that revolves around the customers who purchase their products through retail channels. Such customers tend to utilize this product with minimal interactions with the employees. In addition, there exists a personal assistance component of the resellers who greatly support the customers. These customers tend to obtain their products through the company’s website or email. Finally, the vital community component of the organization exists through the company encouraging the customers to have a conversation with one another through the existing social media platforms.
The critical activity structure of the organization revolves around designing its products for production services to maximize sales. It is worth noting that the company outsources a significant percentage of its manufacturing to the contracts existing in China, believing that the move significantly scales its flexibility. The greatest and critical partners in the organization include the retailers and the dealer partners.. The partners take part in selling the company’s product to other consumers. The company, however, offers training to the partner staff to maximize the likely benefit. The essential resource in the company is its various employee groups. The product development team is active and consults with the consumers and opinion leaders in the camera markets to enhance a great user experience-driven approach to the product that the company designs. The company’s media production team conducts regular travels and effectively captures the images. The move is very healthy in inspiring the concepts of the newly invented devices. In addition, the company has an engineering team that creates the technological devices that, in most instances, support the ideas the product development team brainstormed.
The organizational cost structure includes the economies of scale that the company uses, intending to lower the cost per unit of output as the output increases.. The company’s most significant cost driver, however, is the cost of revenue, which revolves around the general product costs, third-party logistics, and the costs of warranty repairs. Other major organizational drivers exist in different areas, such as sales and marketing, research and development, and administration. It is worth noting that all these driers involved fixed costs. The company has a single revenue stream and product sales. The sales include selling cameras and other accessories. The company prices its products based on the unique features that differentiate them from other products in the market.
The company team includes Nicholas Woodman, who doubles his founder and C.E.O. role. His high academic achievements enabled him to run the company effectively. Before establishing the company, he served as the founder and the C.E.O. of the online game promotion company, also known as the Fun Bug. His primary role as the C. E.O. is to set and oversee the strategic directories that the company takes while working closely with the management team. Antony Bates is the company president.. Before joining the GoPro company, Antony served as the E.V.P. in a Microsoft corporation, where he served as the business development evangelism. Brain McGee is the chief financial officer. Generally, the company has between 1000-5000 employees serving in different roles and working together towards a similar mission and objective of increasing corporate sales and sustaining its position in the competitive market.
External environment
The external environment refers to the macro-environmental factors that significantly influence how GoPro Company operates, how it makes its strategic decisions, the general business performance, and those strategies that only top management can adopt. In contrast, the company has a reduced ability to control each aspect of the external environment that uniquely influences the GoPro Company. Hence the need to acquire specific approaches that will enable the company to deal with the threats that these factors pose while maximizing the opportunities they offer.. The political factors are macro-environmental factors that favour the company because of the generally low-interest rates and the loose financial policies in most countries where the company operates its services. The flexible financial policies enable the company to maximize its revenues. The economic factors threaten the company since most consumers are after cheaper cameras, and most of its significant competitors offer such cameras in the market.. It is also worth noting that the economic constraints make it difficult for consumers to upgrade to the company’s current hardware. The social factors, however, present both positive and negative contributions to the organization and largely depends on how the organization utilizes digital social network platforms such as YouTube, Facebook, and Twitter as the current marketing channels. The privacy issues around factors such as drones may harm the company. The technological factors broadly impact the company positively because of its increased level of innovations, a move that enables it to remain cost-efficient amidst its operations.
The GoPro Company has a robust business model serving its appealing competitive advantage. The unique business model facilitates its competitive edge by enabling the company to achieve high brand quality while increasing consumer traffic through promotional efforts.. The best organizational competitive strategy that GoPro enjoys, therefore, emerges from the capacity of the business to effectively capture, manage and share the necessary content with its customers. The positive business model and competitive edge have further resulted in a positive organizational image. The company uses this tool to draw promotional efforts from diversified sources, thereby increasing customer engagement. Generally, the GoPro business model has placed the organization in a better position to dominate the action camera industry, hence having a more significant market share than its competitors.
The essential resources and competitive capacities also form the external business environment for the GoPro Company. Its brand is one of the most significant resources that the company enjoys. The company has managed to create a lasting quality image in the consumers’ mental status so that whenever they think of the cameras, it becomes the first brand in their minds. The move led to an increase in loyal customer base regardless of the stiff competition in the technological market.. Technology is another vital resource that has kept the company growing. The company managed to develop an entertainment medium successfully that not only allow the users to stream live and share their videos and experience es but also allow them to purchase the cameras and videos from the same platform. The resources have been successful since they were initially launched because more than half a million users engaged the channel, holding great future potential.
Reputation is another critical resource that enables the company to boost its revenue levels constantly. The company, in most instances, focuses on the entertainment and camera market industries and gives its users unique experiences through availing the cameras that can capture an occasion without individuals having to get hold of them. Through its technological efforts, the GoPro Company has successfully presented cameras with high-quality video footage, building a long-lasting reputation for the company.
The organization’s financial performance is strong, placing it ahead of its competitors. The financial ratios analysis for three consecutive years of 2016, 2017, and 2018 proved that the current is doing better than other companies in the industry.. In addition, there are higher chances of the company maintaining better performance in the future because its current assets offset the current liabilities by up to three times. It is also worth noting that consumer electronics recorded a quick ratio of electronics 1:10 in the past three years while the cash ratio remains unrecorded. Generally, its financial position favours its operations over the years, while the current assets ratio is higher than the liabilities.
The political factors, however, influence the impact of the GoPro Company’s long-term profitability in certain countries. The company deals in the operations of photographic equipment and supplies in various countries across the globe, thereby exposing itself to different political climates.. Therefore, the company must analyze various factors before investing in a market. The factors include; the level of political stability and long-term value of photographic equipment on the country’s economy and the risks of military invasions. The level of corruption also impacts how the company products will perform in the given countries, and there is also a great need to consider the bureaucracy and interference existing in the photographic equipment and supplies by the government. The legal framework for contract enforcement and intellectual property protections is worth observing. Pricing regulations determine whether the products will fetch revenues and profits or not, while taxation and wage legislation is also a critical factor worth analyzing before the company finally ventures into the market.
The economic factors also vary based on the company’s country. Inflation rates and saving rates will influence the amount of revenue that the company attracts. In addition, the interest rates, foreign exchange rates, and economic cycles greatly determine the aggregate demands and level of investment within the economy. The GoPro Company, therefore, focuses on these factors to effectively forecast its growth trajectory.. Consumer spending trends are critical for the company because the higher the consumer spending, the higher the purchasing power, which also increases the overall consumption patterns. The unemployment trend is another economic factor influencing how GoPro products and services will perform in different countries. The higher the unemployment rate in a given country, the lower the overall disposable income circulating in the economy, a move that directly influences and impacts the company’s performance. In addition, a higher unemployment rate also serves as a gap in labour skills and knowledge, a move that significantly harms the consumers through an increase in the price of the products.
Demographic is a social factor that influences how GoPro products will perform in given countries by indicating the nature of the social groups likely to consume the products. GoPro products and services are possible to record better and positive performance in a country whose population is full of young people. In addition, a younger population will satisfy the company by providing labour and skilled and educated talents advantageous to the pooled labour. Social class also influences the level at which individuals consume these products.. The company, in most instance, target a higher social class in the countries of its operations. In addition, the higher social class benefits the company since they act as the brand ambassadors while encouraging the upcoming and younger populations to remain loyal consumers.
Education is another critical social factor influencing who will consume the products. Higher education is advantageous to the company and results in more consumers. Higher education indicates increased skills, knowledge, and talents in the company pool. Additionally, it suggests that consumers will likely be aware of the purchases and the changing price trends. Furthermore, the educated social group will, in most instances, focus on positive consumption, a move that will give the company a unique competitive positioning and advantage. Higher education level among a social group is a reflection of their level of awareness of product quality awareness.
Family size and structure is social factors that influence the nature of the products and the quality that the family is likely to consume and engage. Family structure is essential in understanding consumption patterns. In addition, the health status of the family is a social determinant of where they will channel most of their resources. The company will thrive well in a country where health matters are given priority, and hence the population does not give their all in the health sector. In addition, the health and wellness trend reflects the consumption and decision pattern.. GoPro Company is tackling the health challenge as a social factor by introducing health aspects in its marketing strategies and ad features. This move is necessary for consumer research and general behavioural assessments. An increase in health unconsciousness in certain areas where the company operates has led to the company forming collaborations while making the necessary initiatives that not only focus on the physical but also emotional and mental well-being of the general population.
Technological factors hugely impact the company positively or negatively because GoPro is a technological company. Technological infrastructure is a critical factor because the company only thrives in countries with solid technological infrastructures, which is a reflection f increased technological development and the necessary advancements. An increase in innovation across the industry makes technological companies competitive and progressive. Furthermore, an improvement in the technological infrastructure also plays a crucial role in attracting foreign investors, a move that leads to further development and the necessary levels of advancement. Therefore, the GoPro Company has a tremendous competitive advantage because of the more substantial technological advancements the business embraces and the innovative processes it constantly participates in, enhancing its business cycles and the necessary level of operations.
Internet penetration is a critical technological factor that influences the level of product consumption. An increase in internet penetration is necessary for both personal and social lives and professional activities. An increase in internet penetration reflects the progressive and educated population, which is a very beneficial move for GoPro Inc. Company. The company has effectively used the high internet penetrations in different countries to reach the maximum number of consumers, for marketing strategies, and to interact with the customers directly.. Internet penetration has therefore played a crucial role in enabling the company to improve its quality and deliver its services while heavily engaging the strategic communication patterns and levels and the necessary marketing processes.
The use of social media is a form of technological advancement. The higher population in the society that uses social media do so for connectivity and increased engagement. The GoPro Company heavily uses social media, i.e., social network platforms, not only for marketing its products but also to gather consumer data and information. The company heavily interacts with its customers through media platforms while gathering feedback and communicating the available promotions to them through the official social media platform. In addition, GoPro Company uses social media for recruiting purposes, an indicator of the changing trends in the business community regarding social media.
Investment in R& D is a technological advancement that enables the company to invest in foreign countries effectively. An increase in the technological R & D investment indicates that advanced companies such as GoPro and other technology companies within the industry have equipped themselves with more flexible techniques of flexible business operations and other involved methods. Investment in R&D further increases the rates of innovation, and the GoPro Company, therefore, has an increased chance of taking advantage of the innovation and expanding its functions in the global markets, thereby building a highly competitive edge in the industry.
Environmental factors further influence the ability of the company to advance in its operations effectively. Recycling is a factor within the ecological aspect that may enable the GoPro business to function uniquely. Environmental sustainability and recycling are vital factors that the company must consider. It is worth noting that consumers are currently becoming aware of and demanding ways of recycling and disposal of other substances. On the other hand, consumers also demand recycled products for personal consumption. GoPro is precise about the environmental changes and launched a specific site where the products can easily be disposed of or recycled for other uses.. It is worth noting that GoPro Inc. has also introduced a novice product line that greatly benefitted consumers.
Waste management is a critical factor in production, and many countries have established solid regulations for waste management control that ensure all industries sustain the environment amidst their operations. The GoPro Company will only be on the safer side of the environment if it effectively registers its activities with the waste management authorities and the relevant institutions. It will be in a better position to follow the necessary regulations and maintenance checks they avoiding future hassles.. It is, however, worth noting that GoPro Inc. has effectively controlled and designated the relevant process of managing waste and an environmentally friendly manner of disposing of the trash. Green consumption is another critical environmental factor that increases the awareness of ecological sustainability and boosts the green lifestyle globally. Based on the increasing green consumption awareness globally, most consumers prefer products and services that ha e been produced under environmentally friendly circumstances. The GoPro Company overcomes the challenges of green consumption by regularly engaging in ecologically friendly C.S.R. activities.. In addition, the company recently introduced a green product line that distinguishes the existing products, thereby increasing its role in environmental sustainability. Furthermore, the company works closely with the distributors and suppliers within the integrated back chain to ensure that the whole process follows a vital principle of environmental sustainability.
Legal factors influence business operations, and GoPro Inc. Company has to adhere to them for successful operations. The company has to observe health and safety laws that pertain to the well-being and safety of the employees at the workplace. The company regularly checks with the relevant associations about the implementation of safety gadgets that reduce the chances of accidents at the workplace, a move that may violate the employees’ rights.. Safety involves physical well-being and emotional and mental stability in the workplace. It is worth noting that the GoPro Company has placed a lot of emphasis on the safety and well-being of the employees and constantly striving to improve its standards.
The employment law is another legal factor that influences business operations because violating the legal terms may make it difficult for the business to operate effectively. The GoPro Company has formed legal terms and contracts about employment, ensuring that employees do not go against expectations. Some relevant government bodies authorize these contacts and involve all aspects of employment. The GoPro Company practices the employment laws by briefing the employees about the expectations during the recruitment procedure. In addition, the company regularly conducts workshops and relevant training sessions that make the employees aware of the existing laws and other legal formalities. Employment laws ensure that the employees give their bests while the companies do not violate the employee’s rights.
Internal environment
GoPro is an active image company that offers diversified lines of wearable digital cameras for different ranges of activities in society. It is a digital technology company that becomes its distinct competency that can be exploited to realize a competitive edge in the global market.. It is worth noting that the company produces relatively expensive cameras because of the quality. This move has always been challenging because its major competitors produce relatively cheaper cameras. Through its technological advances, the company can develop a strategy oriented towards synthesizing the available resources to make more affordable cameras, thereby expanding its customer base. Additionally, its current position in the market is a great advantage.
It is easier for the company to market its newly invented products because the quality of its brands is already speaking for itself. Therefore, through its technological advances, the company can develop a product that satisfies the low class in society and maneuver through its technological advances to market such products and reach the highest number of consumers possible in the domestic and foreign markets.. It is worth noting that the company has a strong market strategy that not only facilitates its better performance in the competitive market but also increases its customer base and expands into foreign markets. The GoPro cameras are the best brand in the market because of their unique features that result in quality images and videos. The company, therefore, has its areas of strength worth exploring to invent more features and introduce more products into the market because the areas of strength already assure the public of the involved quality.
The GoPro Company is generally good at producing cameras and accessories that meet the diversified needs of the customers and hence, the ability to lead in the competitive market regardless of the challenges. Its cameras are unique because they can be used in extreme action video photography and present quality images and outcome. The cameras and other accessories further have unique features that enable the customers to use them efficiently. Based on the ability to produce special features that match the changing technological demands, the company has its products selling in over fifty countries globally. In addition, the company has a broad base of customers who reach out through established online platforms and social networks. The GoPro Company has a unique capacity to embrace cultural diversity. The management team is flexible enough to work with employees from different ethnic groups while embracing inclusivity.
The company has its female employees counting for up to 34% of the general staff, while 47.5% of the general staff population emerge from minor ethnic backgrounds.. Despite the cultural diversity and other social differences among the staff, the company effectively manages its employees, thereby working together towards a single goal of sustaining the organizational position in the competitive market. Therefore, this move serves as its strength because retaining a diversified staff population equates to the ease that the company experiences in handling customers from different cultural and ethnic groups worldwide. It is worth noting that even though the company has a population of staff from diverse cultural and ethnic backgrounds, it displays unique abilities to retain its employees. The employees who stay for a short period cover an averagely of four years. Additionally, the company values its employees and ensures that it subjects them to a valuable income that helps them meet their demands without straining. Generally, the company has its strength in effectively embracing cultural diversity, retaining its employees regardless of their cultural differences and its level of technological advancement that enables it to remain relevant in the competitive market.
However, the GoPro Company has areas of weakness that sometimes lead to its sharp drop in shares. The company sometimes makes a poor decision that negatively impacts its performance in the competitive market. Between 2014 and 2016, the company wanted to become a media house to capitalize on its content framework effectively.. The company viewed the move as a positive move towards diversity because it felt it had all the required resources. The company released considerable resources to hire senior executives from different bodies such as HBO and Skype. In addition, it produced original content and created both licensing and revenue-sharing platforms that could pave the way for content creators. Still, eventually, the idea did not pay off, and the company experienced a considerable loss. Even though it is a stable company, GoPro engages in poor long-term decisions leading to huge losses.
The company further has its challenges in over-estimating its competitive advantage, a move that is a misstep. The company always dreamed that it could quickly turn its camera business into something more within a short time. The company had greatly invested in media drones and the 360 cameras, but the moves have not satisfied the customers changing needs. Generally, the products have been very useful in sports and other relevant applications. Still, the company is constantly trying to expand the products into other diversified uses even if they are sure the move may be risker and has limited chances of yielding success. It is, however, worth noting that the company did not recreate the everyday magic that the customers were looking for as they tried their product expansions. Making the crazy Superbowl ads was another area of weakness that proves the company experiences difficulty in making just decisions.. Despite gaining stability, the company’s brand and quality still shifted to making Superbowl ads. The company lost a considerable amount of revenue when the ads failed to fetch the returns as expected.
It is also worth noting that the company has a disadvantageous slow response technique because it may turn the clients off. The company realized a share drop, and part of the challenge emerged from the long wait from the previous releases. There was a significant delay ahead of the U.S. festive seasons, and even the customers who looked forward to upgrading their cameras could not do so. In addition, the customers have always complained of the company responding very slowly to the user demands, especially when it comes to more effortlessly transferring the editing tool. However, in early 2016, the company bought and integrated two video startup tools effectively into the P.C. and mobile apps. In late 2016, it finally launched an effective cloud backup platform.
Organizational design for an international design
GoPro is a multinational organization and has a shipping policy that enables it to operate at international levels. The company sells its products to over fifty countries, and the online platforms allow it to sell globally. The GoPro Company effectively runs its international operations through strategic approaches to maximize its benefits in the global and international markets.. The company adopts a niche segmentation strategy to position its cameras in external markets. The company is particular when selecting the countries it would like to venture into and the target population in the countries. The company adopted a strategy of delivering quality H.D. cameras within a specific budget, enabling it to create a competitive edge over its major competitors. They also target similar markets in different countries globally.
the company positioned its products within a range of $200 and $400, and this move was advantageous because it suited better clients from different income groups. Through this strategy, the company has increased its customer base in international markets, maximizing the profits made. Additionally, the company sustains its international operations by ensuring that they do not lose its grip of the market in the external markets. It, therefore, focuses on the quality to ensure that the cameras are of higher standards and the battery used for their products are equally of great quality. The company and its brand remain the better option through such a move. It is worth noting that portability is a critical factor that enabled the company to position its brand and products in the international markets easily.
As the company develops its product, its main objective has been to bring its customers and users into its story and give the users a reason for acquiring the products. By involving the customers while taking care of their changing demands, the company finds it easier to explore the international markets in a quadrant with raised values and reasonable prices. Such a move increases the number of clients going for the products; the business generates increased revenue.. The organization is looking forward to advancing its product, a strategy that enables it to attract diversified sources from international markets. The company increased its services from a camera manufacturing enterprise to a social media hub around sports content. Ultimately, it expanded its target base from camera consumers to sports athletes globally.
In the international markets, the company involves market segmentation of the customers who are willing to pay more for quality products. It is, however, worth noting that the price of its products is not as premium as the products that the competitors avail in the market. GoPro Inc. Company further manages its international operations through an advertisement strategy. Through this strategy, the company heavily relies on social network platforms to understand the customer’s emerging needs, get feedback and sustain a considerable global customer base.. The company further adopted a content development strategy for the advertisements that mainly targeted the users of their products. The company received better content matching their expectations’ benefits through this technique. Through digital platforms such as YouTube and Instagram, there is an increased number of people who learn about the items and make decisions at their best levels.
The business further creates excitement among the product consumers in the international markets through various sponsorships that enable them to achieve their individual goals.. The company has created scope as part of its story, and the move resulted in a strong bond between the company and its product users globally. The company head office, through its management, makes the relevant decisions that do not only apply to the headquarters but other international branches. Even though the country has branches in over fifty countries, there exists a stream management team that oversees the operation of the business in other countries. The management team critically evaluates how the changing political factors in the given atmospheres might initiate pricing and general consumption changes, thereby getting the right strategies to keep the business moving amidst the challenges. It is, however, worth noting that the international; branches do not depend entirely on the headquarters for all the decisions and the necessary directives. Their internal management structure and the governance team keep the operations going. They have to rely o the information from headquarters on the way forward in case of changes in the policy.
A brief overview of products and services
The company designs and develops cameras, mounts and other relevant accessories. In addition, it deals with desktop applications and cloud-based subscription services. the company plans and develops HERO cameras, the company’s first brand that could provide quality video streaming and images captured. In 2014, the company invented a HERO3+ that came in different editions and colours. The product had unique features that enabled it to film at a high ratio. The brand sold at a higher rate because it could support a 4K UHD video plus 12MP photographs. The products kept evolving through the heightened technological advances that technology adopted, and in 2014, the company introduced the HERO4 product brand..
The company released the HERO 6 brand that came in black in 2018, a brand that was more stable than those that the company had previously introduced in the market. In addition, the company introduced HERO7 in the same year, a uniquely designed camera brand with certain features added to its video capturing ability.. The camera had increased speed in video capturing and could stream live across multiple social network platforms such as Facebook, YouTube and Instagram. In 2019, the company released a HERO8 brand into the market and had unique features such as improved stability and was, therefore, more advanced than the initially introduced camera brands. Furthermore, the HERO8 was black and had unique mounting fingers, which enhanced its folding. Furthermore, the design was the best option in the then market because its lenses were readily available and replaceable, unlike the previous cameras. The Hero9 is the latest of the brands and was introduced in 2020. The brand was unique and attracted more consumers than those introduced into the market initially because it also had a new-front facing screen apart from the user-replaceable lenses.
GoPro Karma and GoPro karma grip are celebrated products from the GoPro Company. The GoPro Karma is a drone that the company produced and existed in the market until 2018 when it discontinued its existence. Synthesizing the drone was one of the riskiest and most challenging steps the company had ever taken. Its efforts to partner with larger technology companies such as DJI and 3D Robotics did not bear fruit, and the company took complete control of developing the project in mid-2015. The company was scheduled to release the project in 2016; however, it experienced a delay until later the same year. The company released the project alongside other designs, such as Hero5 and session cameras, with a unique feature of removable hand-held stabilizers effectively integrated into the new design. A few customers complained about the power failure during the operations, and the GoPro Company called back their drones and fully refunded the customers.
GoPro 360 degrees camera is another unique product that the company launched in 2017. The omnidirectional camera had special features that could enable it to record 360 degrees of footage. In addition, the company produced and launched various mounting accessories for the cameras. The accessories include a dog harness, a surfing mount, and suction cups. The company further launched a video editing studio, software that could effectively edit the camera footage.
The company offers various services, such as instantly highlighting videos sent to personal mobile phones and other technological gadgets. After an individual captures their videos successfully, they plug their GoPro while adhering to the charges and the footage automatically uploads to clouds. It then becomes more straightforward to use such in making a highlight video.. It is worth noting that the videos are automatically sent back to the phone. Unlimited cloud backup is another service from the company that is readily available to the users. In addition to the backup, the company provides 100% quality footage, and the involved auto upload is quick and saves time. Such backups are available from the app and the web. The company further offers live streaming sessions where users can adopt their GoPro for livestreams by creating private links and sharing with friends.
Information technology and control system
The GoPro Company heavily rely on information technology because it is a technological company. The company adopts technology in developing and disseminating the cameras to transform the design and ensure that they meet the changing customer demands based on the changing technological factors and expectations. The development of smartphones is currently becoming a challenge to the company reducing the customer base because individuals can get the same video experiences from their digital gadgets. GoPro, therefore continuously depends on information technology to get the best ways of redesigning its gadgets, thereby innovating and staying ahead of the competitors.. Through information and technology, the company invests heavily in research at both macro and micro levels, not only in the United States of America but also across the external markets globally. The company creates a creative environment through technology where they can quickly come together and find solutions to challenging technological problems. Through information technology, the company no longer engages a long supply chain to reach the final consumers. The company has shortened the product supply cycle because it directly engages more customers because of the open social network platforms. In addition, information technology enables customers to achieve a rich experience by raising their issues to the company without involving a third party or a prolonged link.
Technology innovation has further disrupted the supply chain by providing greater access to the information that the suppliers may need. The data is available through online platforms, and individuals can easily make relevant decisions based on their levels of understanding. Generally, the adoption of information technology has dramatically lowered the general costs of production and the general servicing costs within the cyclical consumer sectors. Through technology, the company effectively goes about its social media marketing. That is, the development of information technology has enabled the company to adopt innovative marketing techniques that enhance collaborations with existing customers. The company leverage the opportunities that come with media marketing to improve its general business performance. In addition, it has the opportunity of using technological trends to start a creative social media campaign that may enable it to develop an online brand community. Through technical information and innovations, the company remains ahead of its major competitors because it manufactures products that change with the demanding changes in the customers’ tastes ad preferences. Currently, the company is keeping a close eye on the analysis of 5G and the determination of its potential to deliver positive business outcomes through enhancing sales growth.
GoPro Inc. Company controls its inventory levels by turning the merchandise from a significant risk to a great point of strength. Its main goal is to ensure that the company does not suffer the consequences of a poor inventory.. It is worth noting that the company has a challenge in determining the inventory level it needs to build because it is a tech company hence the need to run its hardware poses a challenge. The company has ever suffered the consequences of poor inventory and thus adopted techniques that enable the inventory to work to the company’s advantage. The company is currently using a product strategy to sell its inventory effectively. The company updates one or two of its cameras annually, pushing some of its older cameras down the product line. Through this strategy, the company reduces inventory risk almost yearly.
In contrast, the company keeps its product lineup fresh while appropriately dropping the older cameras out of the line without interfering with the inventory level. It is worth noting that the company uses the same procedure with different brands but realizes success. The strategy is an effective risk management tool because the company has at least two years with a given camera brand, which includes multiple holiday seasons, making it easier to plan for the inventory.
GoPro Inc. Company further manages inventory levels by reducing risks via inventory management. The company is currently making ways how to keep the retailers and consumers in short supply of the cameras. This move serves as a deliberate strategy because it ensures the company does not have an excess supply of products that are likely to be written off within a short period. Oversupplying the market is the best option for the company because it is difficult to guess the number of cameras that are likely to sell during a given period, especially if the products are newly introduced.
It is worth noting that the company has a C.I.O. whose work is to ensure that the technological advances that the company makes yield fruits in the end. One of the jobs that the C.I.O. oversees is sorting out the organizational myriad cloud applications that the business has purchased through its wearable camera units. The C.I.O.’s goal is to introduce a governance approach to the company that enables it to run entirely on cloud software. Additionally, the more extended plan is to lay the strategic foundations for the new analytic systems as the company continuously evolves from its current operations to one of the largest global data companies.
GoPro adopts various security measures to protect the company’s profile and customer data. The company values both its privacy and website visitors. The company effectively refrains from sharing individually identifiable data with any outsider or a third party outside the organization. The company effectively manages this by enabling customers to only receive information and communication through the brand website they have directly purchased from or contacted.. There are various guidelines that the company uses to ensure that the client’s data is safe. Such includes collecting individually identifiable information or other information linked to the clients. The company continuously monitor and analyze consumer activities.
The company uses cookies and similar technologies to track customers’ movements and activities.. However, it is worth noting that the customers accept the cookies at their convenience. Furthermore, the company uses third-party advertising companies to serve ads on their behalf. Such companies may apply action tags or single-pixel gifs to effectively measure the strength of their advertisement and the security measures. It is, however, worth noting that all the types of information these advertisement companies collect about the customers’ movements on these platforms remain anonymous.
The company applies enterprise digital software management in handling its digital transformation initiatives. The general business and technology executives adopt on-prem and an extensive cloud application involved in customer care preferences and the public press releases, case studies and propriety sources.. In addition, the company applies different software management techniques in handling internal and external research. The software relates to the ERP financial statuses, the e-commerce and expenses management and the I.T. decision-making among the key stakeholders. It is worth noting that the organizational database provides contextual information on how the company runs its software management tools to further invest and strengthen the existing relationship with other large bodies such as Greenhouse, Oracle, and SAP. GoPro uses its software management tools to advance its various cases of document processing, keeping track of both documents and the client’s information and maintaining its contact relationship with the customers. Additionally, it uses it to contact other competitors and hold organizational meetings while reaching additional business information in a secure location.
The company uses a Shakespeare document management system, a potent software management tool, enabling the company to classify and structure its operations effectively and create the necessary documents while recording and tracking all the documents and business processes taking place within the organization. It is, however, worth noting that E-business remains the basis and standard for the company’s effective functioning. The company also uses modern technology for electronic data processing and competitive advantage. The Shakespeare document management tool that the company adopts saves money and time, enabling the company to gain efficiency. Additionally, it increases productivity by speeding up inter-company communications and through its capacity to automate the business process.
The company must analyze and trust its technological advances before venturing into a niche market in camera technology. Therefore, information technology determines whether the company can withstand additional market pressure or needs to maintain its standard operations without further ventures. In addition, the GoPro Company uses information technology to decide the necessary features they need to install in their digital cameras. By making such decisions, the company gets to a better position to meet the market’s changing needs through its unique features on the product that satisfy the customers’ experience in unique ways. In addition, information technology enables the company to find a niche market gap, the best ways their products can fill the gap, and whether the products require feature adjustment to fill the identified gaps. It is worth noting that the company depends on information technology to make decisions, whether they are simple or complex. This move is necessary to ensure that the decision aligns with the organizational objective of continued operation and growth. Additionally, technology avails considerable information for the decision-makers, enabling the executive team to form a better collaboration, hence the necessary updates on performing tasks that will keep the company going.
Organization Size and Life Cycle
GoPro Size
GoPro is an American company founded by Nick Woodman in 2004 that specializes in making wearable motion cameras for consumers. Through a series of data, Thuresson explains the fundamental requirements for the growth and development of an organization in the current state of existence and analyzes how to expand a company’s market share and competitiveness based on the advantages brought by the global macro economy, industrial competitiveness and the operation of organizational structure. By analyzing the scale of GoPro company, it can be compared with its competitors in the same industry to explore the industry’s development level and the company’s development trend. As of 2019, the company had a market capitalization of 799million dollars at $4.47 per share and 869 employees. Since GoPro focuses on wearable motion cameras, the company’s main consumer base is younger consumers. As a result, promotion through social media has become one of GoPro’s main promotion channels. In its YouTube channel, GoPro managed to reach a new record of 178 million views in the third quarter of 2019. Therefore, through the new breakthrough in the viewing volume on the YouTube channel, we can know that GoPro’s brand influence and market share have a certain voice in the motion camera market and are in line with the accurate positioning of a large company. Although GoPro is not like some old photography companies such as SONY, Canon, Fuji, Kodak, and so on with strong corporate strength and long brand image, as the leader in the sports camera market, GoPro can be regarded as a large-scale photography technology company with a certain scale.
Second, GoPro’s sales in South Korea and Thailand grew 27% and 88%, respectively, for the second year in a row, so the Asia-Pacific market has also become a major source of revenue for GoPro and managed to outperform other regions. The increasing market share also shows that GoPro has a certain enterprise scale and strength as a large company in the motion camera market. In addition, GoPro also acquired Replay and Splice, two video editing platforms, for a total price of 105 million in 2016, to integrate the advantages of the two to create GoPro’s own application, aiming to make users experience a more exciting visual experience. In addition, GoPro also acquired Replay and Splice, two video editing platforms, for a total price of 105 million in 2016, to integrate the advantages of the two to create GoPro’s own application, aiming to make users experience a more exciting visual experience.
In general, GoPro is a large photography technology company, which uses the sales model of Internet publicity to expand its brand image and influence. The determination of the organization scale can make the enterprise itself can more clearly recognize its own living space, and can help it enter into play its own advantages to expand the market share and product competitiveness. Organizational scale can also make enterprises more flexible in analyzing market demand. With the strong strength brought by enterprise scale, products can be segmented to meet the needs of different consumer groups through market segmentation. The advantages brought by the organization scale also promote the innovation ability of enterprises themselves. Taking innovation as another great advantage of enterprises is that small-scale enterprises and single-product enterprises cannot achieve and have advantages.
Description of Life Cycle
According to Hanks, the life cycle of an organization refers to the evolution of any organization through a series of identifiable and discernible stages that reflect the current position and state of the company. Thus, the life cycle of an organization usually includes five recognizable stages: Start Up, expansion, Consolidation, Revival, and Decline. Hanks explains in detail the different crises faced by the organization at each stage and the problems that the organization needs to face and solve in the life cycle of the organization. In the first stage of the life cycle, that is Start-Up. In this stage, because the organization is in the initial environment, the organizational structure of the enterprise is chaotic or does not exist, so the founders and entrepreneurs need to undertake huge investment risks. In addition, this stage is characterized by the need for the founder to personally work and provide guidance because of the lack of capacity and number of employees. The second stage is Expansion. In order to meet the increasing market demand, the organization expands its product line and adjusts its original organizational structure. What is more difficult in this stage of development is adjusting the organizational structure and the ineffectiveness of decision-making. The reorganization or adjustment of the organizational structure requires leaders to think in stages, while the ineffectiveness of decision-making means that leaders need to avoid squeezing and making wrong decisions to delay the normal development trend of the organization. The third stage was consolidation. It was characterized by a more formal organizational structure and participatory management. The products of the organization tend to be mature, but the structure and function need to be bureaucratized, changing the centralization of power into the management and formulation of decision-making by voting and participation system. The fourth stage is Revival. Due to the continuous expansion of the product market, the organization needs to delegate the decision-making power of operation, so that each department can have autonomy. Diverse markets and sectors are too complex to make unified decisions but need to maintain control. The fifth stage is decline. It is characterized by a decline in the size of the organization and sales. The organizational decline can start at any stage, but it requires leadership to adjust. As organizations readjust successfully or gain innovation and return to the market, failure may repeat the cycle of decline.
GoPro’s Life Cycle and Factors
As a large photography technology company, GoPro is no exception in the organizational lifecycle phase. Nick Woodman, the founder of GoPro, has been the CEO of GoPro since its inception. In 2002, he was inspired by his own surfing experience and decided to make a compact motion camera. In 2002, Nick Woodman started with $30,000 of his own money and $35,000 from his mother and invited friends to run and sell the business. Therefore, this information clearly delineates that GoPro is in the first phase of its life cycle. GoPro’s second phase began around 2011. GoPro’s growing popularity for motion cameras and GoPro’s excellent product performance have helped. Between 2011 and 2014, GoPro’s overall revenue increased from $234 million to $1.4 billion, with an average annual growth rate of 81%. In particular, it grew 125% between 2011 and 2012. This information clearly shows that GoPro is in the second phase of its life cycle. GoPro’s third phase will begin around 2016. After cutting 7% of its workforce in January 2016, GoPro laid off another 15% in November, and Tony Bates, GoPro’s boss, announced his resignation. In 2017, GoPro CEO Nick Woodman decided to cut another 270 employees in order to save operating costs and restructure the company. During 2016 and 2017, GoPro experienced a number of layoffs and organizational restructuring and restructuring, which resulted in a significant change in the positions of GoPro employees. This information directly indicates that GoPro is in the third phase of its life cycle. GoPro’s fourth phase began around 2018. Because GoPro’s drone business took a hit in 2017 and pulled out of the drone market, its growth rate slowed in 2018. Revenue declined to $1.15 billion in 2018 from $1.18 billion previously, resulting in a slow trend in organizational growth. However, GoPro has gradually recovered due to the global economic recovery leading to the improvement of personal spending power and the popularity of motion cameras.
The stage of the organization cycle can be confirmed and analyzed by many factors. First of all, many behaviors of the enterprise, such as the adjustment of the organizational structure, the quantity and style of the organization’s products, and the operation strategy of the organization are the main influencing factors.
Organization Culture
Definition
Madu believes that organizational culture is the ideology formulated by the top leaders in the enterprise, which implements acceptable pursuit goals through the combination of core values and more specific norms. In other words, organizational culture is a culture in which leaders establish parameters and communicate with each other through values and norms. The establishment of organizational culture is one of the important components used to develop a dynamic organization, and also the main source of its motivation. As a dynamic technology company, GoPro has always regarded organizational culture as the source of its development, so its products have always occupied an absolute competitive advantage in the industry. Organizational culture is different from substantive goods, so there is no absolute and single definition. Therefore, in order to understand organizational culture, it is necessary to conduct a deeper analysis of culture to obtain a full understanding.
GoPro’s Culture
GoPro is a large photography technology company whose mission is to diversify. On a day-to-day basis, the company’s mission statement is dedicated to “helping people capture and share their lives in exciting ways.” Features of the mission statement include highly values and connection. First of all, highly values are GoPro’s stated goal to help customers capture and share the wonderful moments in their lives. Therefore, the customer experience is the primary concern of the manifesto. Second, connecting with customers through GoPro’s products is another feature of the mission statement. By using GoPro products and bringing them into their lives, consumers establish a good consumer connection with GoPro. With inclusion and diversity as its mission, GoPro’s campaign also promotes five key values, Namely, Make Friends, Obsessively Serve to Harness the Power of WOW, Stay Agile and Be a HERO. With a mission dedicated to helping customers capture and share their lives, inclusion and diversity as a top priority, together with these five key values, make up GoPro’s organizational culture.
As the CEO and founder of GoPro, Nick Woodman represents the ideology in the organizational culture. He describes the mission statement, the mission and core values that together form the organizational culture of GoPro today. First, the first value is Make Friends. It is characterized by inclusiveness, using the strength of all people in the organization to work together, and including the suggestions or opinions of all people. GoPro has always been following the mission of the organization, taking diversity, inclusiveness and fairness as the basic principles, so that employees can work together better and get favorable suggestions from employees to help themselves improve their competitive advantages. According to GoPro, the organization is actively working to promote employee performance by creating an environment where everyone can participate and be treated equally, and where employees feel a sense of belonging and security at home. Secondly, it takes the interests of customers as the primary goal of the organization service, and guarantees the quality of a series of services required by customers. GoPro has acquired technology and technology companies at various stages of its development in order to build its own mobile applications and editing software. Therefore, in order to make it more convenient for customers to capture the wonderful life and share life, GoPro ensures the transmission and editing experience of customers through the free quick editing application. Harness the Power of WOW (number 3) and Stay Agile (number 4) are both about GoPro’s commitment to its product. First of all, Harness the Power of WOW is the promise of users in product experience and technology, GoPro products will always exceed the industry and users’ expectations, technology innovation and users’ hope combined, so that GoPro products can always give users with a sense of freshness and technology. Second, staying agile is GoPro’s commitment to product innovation. GoPro products are based on the ability to make rapid changes and adapt to the needs of users in the market. So, GoPro’s two points are a commitment to its products in the area of innovation. Finally, GoPro is committed to helping its customers capture and share their lives while taking social and industrial responsibility. Adhere to their original idea, will be better products and services to provide customers. In December 2020, GoPro signed the Outdoor CEO Diversity Pledge to shape a diverse and inclusive organization that creates a more equitable and secure family for its employees. In addition, GoPro is also working to reduce the environmental impact of plastic in its products. These social and industrial responsibilities are what make GoPro a hero.
Ethical Values
Definition
As an important part of organizational culture, moral values influence the behavior of everyone in the organization to a great extent. According to the authors, the ethical values created by the top levels of an organization can led to higher or lower levels of individual ethical behavior within the organization through implementation and daily norms. Therefore, the standards of ethical values formulated and implemented by the organization represent the moral level of individuals within the organization. Therefore, this study aims to analyze whether the moral values of the organization are correctly implemented in the daily work and affect the individuals within the organization.
GoPro’s Ethics
As a large organization, GoPro has also developed its own ethical standards and code of conduct to promote the healthy development of the industry. The author mentioned in the article that the formulation of moral values by the top management of an organization can affect the level of individual morality within the organization. GoPro has a complete and strict code of conduct to ensure that the overall level of ethics and conduct of employees within the organization is consistent with overall industry standards. In the Code of Ethics and Business Conduct report, it is mentioned that as employees of the organization, they should strictly abide by the code of ethics set by the organization and as managers, they should be moral role models. In addition, GoPro has developed an industry-specific code of Business conduct to ensure that the ethical behavior of its members does not violate the business code and the industry’s bottom line. The code covers business practices such as trade secrets and organizational secrets, the use of assets within a company, conflicts of interest, antitrust and fair play relations, corruption and bribery, sanctions, and export controls. GoPro, on the other hand, has a six-point code of ethics. Some of these include: Know and follow the rules, Certify annually, Ask questions, Lead by example , Guide and provide training and Be aware and accountable. It is the policy of Certify and Lead by example that members of the organization not only comply with the code of ethics but also update and Certify annually. Certify it annually makes it possible for managers to act as an example of ethical behavior and it is our honor to certify it and avoid violation of laws and regulations.
Corporate Social Responsibility
Corporate social responsibility (CSR) is the responsibility that an organization takes after it has an impact on society and the environment through a series of decisions and activities. Corporate social responsibility usually includes health and safety, environmental management, sustainable development, labor rights, human rights, and other responsibilities required by the operation of a business. As a technology company in the photography industry, GoPro has its own responsibility for the society and environment. In 2021, GoPro launched a pilot program to eliminate packaging plastic because GoPro products use a lot of plastic products. Reduce environmental impact by reducing usage and recycling alternatives. In addition, GoPro is committed to a strict organizational code of ethics and social responsibility to protect human rights. In its code of ethics with suppliers, GoPro stipulates that employees must not be under 15 years old and that forced labor and human trafficking are prohibited. On the other hand, in order to ensure that the upstream suppliers can achieve universal ethical trading behavior, GoPro immediately formulated the supplier code of conduct in order to avoid the supplier’s material safety unforeseeable and illegal behavior, and also to avoid the entire supply chain violations.
In general, as a large company, GoPro has clear rules and strict procedures in its code of ethics and code of business conduct. While GoPro’s overall ethical values have been successful and worthy of praise, there have been weaknesses and lapses in other areas of the business. Therefore, GoPro needs to strengthen the training and publicity of the code of ethics, make up for and pay attention to the other missed areas, so as to achieve the leading position in the industry and become a moral example in the industry.
Innovation & Change
Definition
Innovation is different from invention. Innovation is the process of making use of the opportunities at your disposal to become new ideas and put them into action so that people can adopt your ideas widely. The emergence of a product or idea is completely new to the market and consumers when there is a new demand from the market or consumers. Through the organization’s technology, resources, capabilities and other continuous innovation to keep consumers and markets always fresh and high attention.
Innovations at GoPro with Examples
Through GoPro’s key values, GoPro has always been committed to innovation as a source of operational power for organizations. As the CEO of GoPro, Nick Woodman has always regarded innovation as the competitive advantage of the organization. For GoPro and Nick Woodman, innovation is not only about markets and revenue but also the beginning of a dream. In other words, it was founder Nick Woodman’s surfing experience that led to GoPro’s new idea of creating a small motion camera. In September 2004, Nick Woodman put his new idea into action, developing and selling the first 35mm HERO camera, which made $350,000 in revenue. This brief success did not interrupt GoPro’s innovative ability and passion, and it was followed by years of deeper development and innovation in traditional motion cameras. In 2006, GoPro introduced a digital camera with continuous video shooting. In 2007, GoPro broke the barrier of no recording with the launch of the Digital Hero 3 model, which supports unlimited video and audio activities, so that consumers can record the sound when they use the product for outdoor sports. Over the next few years, GoPro’s innovation drive culminated as technology trends continued to improve. The 2008 Digital Hero 5 was the first wide-angle lens in the industry, allowing users to marvel at the unique panoramic photography experience and set a new benchmark and direction for the industry as a whole. Therefore, GoPro’s innovation ability and concept follow the growth of GoPro all the way forward. Innovation not only provides customers with a continuous stream of new products and new user experiences, but it is also a fundamental factor in GoPro’s continued growth and customer love.
On the other hand, GoPro not only brings innovation to users in process, but also brings innovation to users and the market in service positioning. In other words, as one of the photography industry, GoPro does not have any competitive advantages compared with other competitors such as SONY, Canon and Fuji in terms of brand heritage and financial strength. However, GoPro’s product positioning is geared toward outfitters and athletes of all types, so its product positioning and service is also innovative. To enhance the user experience, GoPro has developed its own video editing software and applications to inject innovative ideas into the service. As a result, GoPro’s product and service positioning is innovative compared to other organizations.
Changes at GoPro with Examples
Change indicates the need for change to avoid the potential crisis that the organization will face because there is no simple solution to get rid of the difficulties it faces. According to the changes proposed by Booth, GoPro, as an innovative photography technology company, adopts the strategy of change to operate because it avoids all potential crises. First, GoPro’s transformation is reflected in its advertising strategy. Compared with other competitors, GoPro’s main publicity channel comes from the Internet. In other words, because GoPro is smaller and less capitalized than its rivals, it can’t spend a lot of money on traditional advertising to promote its products. Therefore, GoPro adopted to abandon the traditional advertising industry publicity channels, increase the advertising investment in online platforms and video playback platforms. On YouTube, for example, Go Pro reached a whopping 178 million views in the third quarter of 2019 and grew from 1.2 million followers to 4,200. In addition, the network platform can shorten the distance between GoPro and users and make it easier to understand the needs of users. For example, YouTube calculated in 2014 that GoPro users uploaded nearly 6,000 videos every day. The uploaded content of these users makes GoPro more intuitive to feel the needs of users and real feedback information. It can be seen that compared with its competitors, GoPro has abandoned the traditional advertising channels and adopted the Internet advertising channels. This move is a huge reform, and also avoids the crisis caused by the potential shortage of funds.
In general, for GoPro, which is founded on innovation, innovation is the driving force for sustainable development of the organization. Through the continuous learning of the organization and the research and development of technology to put new ideas and innovative products into the market, so as to help users enhance the freshness and experience is the goal they have been striving to pursue and create. And GoPro has not given up on reform, because reform has allowed it to avoid potential crises and obtain new channels of publicity.
Decision Making Process
Authority & Responsibility
The decision-making process is the process of selection, which is mainly divided into 6 stages, including: identifying the problem, Generating alternatives, Evaluating alternatives, Choosing an alternative, Implementing the decision and Evaluating decision effectiveness. As can be seen from the organizational structure of GoPro, the organization structure of GoPro has different levels, so the research needs to analyze the participation degree and the ability of the participants in the decision-making process. Therefore, there are two different decision-making modes in the decision-making process: rational decision-making mode and trashcan decision-making mode. Because the main variables in the decision-making process come from the participants, different decision-making methods will bring different effects.
First, when an organization needs to make a decision, identifying the problem becomes a priority. Lunenburg emphasized that identifying a problem is to analyze the internal and external environment of the problem to be solved before the decision-making process occurs. Analyze the internal and external environment by collecting information in order to propose problems to be solved and different solutions. Second, find alternatives. When problems arise and have been identified, managers involved in decision making need to look for alternatives to achieve goals and find as many alternatives and information as possible to propose multiple options for organizational decision making at once. The third is to assess the options gathered. Based on the information of alternative solutions collected, satisfactory solutions can be selected through research and analysis. However, be prepared for alternatives after you’ve chosen the most satisfactory solution. Prepare for the coming crisis and uncertainty with a sense of crisis. Fifth, implement the best solution selected and maintain good communication and exchange of ideas with managers within the organization. In the final decision-making process, the effectiveness of the solution is evaluated by the results of the solution.
GoPro’s organizational structure is simpler than that of its competitors and organizations. Therefore, lower-level employees do not participate in the decision-making process of the organization and give corresponding suggestions and opinions. Due to the unitary organizational structure and the power concentration in the internal operation and management structure of the organization, the power of the organization is too concentrated, while the lower-level managers and managers cannot participate in and pay attention to the organization, which leads to the lack of confidence in the organization or the sense of belonging of the employees. On the other hand, GoPro’s internal organization has gotten younger since its 2014 IPO. Today’s GoPro board has an average of 2.7 years of experience working and managing GoPro, leading to a lack of confidence in GoPro management from investors and outsiders.
Decision Making Process
Lunenburg explains that when an organization makes a decision, two different decision modes or models can be obtained, such as The Bounded Rationality Model and the garbage-can mode. When GoPro was expanding, the organizational structure was in its infancy, but the leaders and employees of the organization had a pretty good understanding of what was going on inside the organization. At the same time, they also have a keen sense of smell and observation of the external market demand environment of the organization. As they enter the market with Hero 3 and 5 cameras and reap huge profits, their decision-making process with the bounding Model is effective and is a Bounded model. In the process of expansion decision, GoPro management identified market problems and successively launched products similar to alternative solutions according to market demand, which showed that GoPro had perfect information on market demand and understood the advantages of its own products.
The decision-making process of GoPro in the integration phase belongs to the garbage-can model. First of all, in the integration stage, the organization needs to make internal adjustment, which includes a series of issues such as internal organizational structure and organizational concept. Initially, GoPro had a single organizational structure and didn’t have a lot of management, so employees were involved in the decision-making process. The adjusted organizational structure makes the structure more bureaucratic, and the phenomenon of power concentration occurs, which makes the employees in the organization unable to provide suggestions according to the actual needs of the market. In addition, in the integration stage, the organization needs to adjust the product line, organizational structure, reduce staff, appoint new positions, etc., and many problems to be dealt with will lead to the shelving of solutions and alternatives generated in the decision-making process, which will lead to the problems that need to be dealt with cannot be solved quickly and become crises.
Therefore, as Lunenburg said, the decision-making process is a process of selection. Because of the existence of variable factors such as employees and leaders, the organization’s ability to identify problems and collect information to reach the best solution and come up with multiple alternatives will be limited. After GoPro company has become a regular large enterprise through a series of operations, such as public offering and listing, The participants in the decision-making process of GoPro will make correct decisions according to the reality and use the bounding Model to make decisions and solve the crisis.
Conflict, Power, Politics
GoPro Environment and Conflict
According to Fisher, conflict occurs because one or more people are incompatible with each other because of different goals and living values, resulting in antagonistic emotions. Because GoPro is the manufacturer of the product there are also suppliers and consumers in the whole production chain. In the whole chain, there are many stakeholders, so conflicts will inevitably arise.
First of all, the company has its own special channels and methods for product publicity and marketing. In terms of sales channels, direct retailers are GoPro’s largest sales channels in the global market, accounting for 48% of its revenue in 2018, including independent retailers, e-commerce channels and so on. In many retailers and distribution channels, if GoPro chooses to raise the price of its products due to cost or other considerations, the relationship between most retailers and GoPro will suffer. When GoPro chooses to raise prices appropriately, retailers in the downstream industry will be threatened by the increase in prices. When the sales volume cannot rise, the products in the hands of the sellers cannot be successfully sold or realized, which will cause a large number of inventory and the crisis of capital chain break.
Second, GoPro is the producer, while the supplier is the upstream chain of the company. For GoPro, which relies on the materials of suppliers to produce products, the supply of raw materials will be tight when the target cannot be reached with suppliers due to the price problem. Although GoPro and suppliers are interdependent stakeholders, when conflicts occur, GoPro needs to remove suppliers and develop new supplier guidelines. For example, the provision of a supplier’s code of ethics to material suppliers, the termination of contracts and supply relationships in case of violations and unethical trading practices, etc. However, due to a series of problems such as quotation, specification and product grade, the production department of GoPro will be inefficient, and the qualified rate and quality will also be affected to a certain extent. Therefore, for GoPro, the source of conflict is that all stakeholders in the whole chain of interests have different interests and different development goals. So GoPro needs to reduce the possibility of conflict in any activity.
Power and Politics
Fisher explains that there are three sources of conflict: economics, value and power. In most cases, economic conflicts and value conflicts arise from external stakeholders such as suppliers, retailers, consumers, etc. The other source of conflict, the so-called power, comes from within the organization. In other words, conflicts of power can wreak havoc within an organization. Fisher says that power conflicts arise when multiple parties with interests want to maximize their impact on society, the environment, and relationships. As competitors or stakeholders of interests, it is impossible to willingly let the other party’s power exceed their own, so it will lead to the beginning of power conflict. The organizational structure of GoPro is relatively simple and simple, so the power of the members within the organization is too concentrated. For example, Nick Woodman, the founder of GoPro, has been serving as the CEO of the organization, so the decision-making power of the company is too centralized, which makes the organization structure unable to achieve a more professional and bureaucratic degree. As a result, some members of the organization are not motivated to participate in the decision-making of the company.
Politics is when groups or groups make decisions in a collective decision-making process, while politics in an organization like a company is the use of power to make decisions. When GoPro is in the initial stage or expansion stage, in order to meet the needs of the market and users, the management of the company needs to make accurate judgments about its production capacity, innovation ability and market demand. When there is a need for new products and more products, Nick Woodman, as CEO, uses his political power to make the right call. During the expansion phase, CEO Nick Woodman used his political power to drive GoPro’s 2014 cost of sales to $767 million, resulting in a gross profit of $627 million and a gross margin of 45%.
In general, as a large company in the photography industry, GoPro has too much power concentration due to its single organizational structure. In addition, GoPro has been questioned by investors because of the low average working age of its board of directors and top executives. Based on the above two points, GoPro has potential conflicts due to power and economic reasons. On the other hand, politics is the ultimate tool of collective decision-making, because the organizational structure of GoPro makes the exercise of political power too concentrated and monopolistic. While the right exercise of political power can directly and effectively help companies to grow quickly, long-term political power can cause conflicts.
Recommendations
Industry Competitive Pressure
GoPro is an organization dedicated to helping customers share and capture the wonderful life as a core value, so it needs to have an absolute say in the speed of product renewal and innovation ability. In other words, since the beginning of GoPro’s creation, because of its innovative ability and unique audience, the company has been constantly expanding and attracting people’s attention and love. However, with the continuous expansion of market demand and the emergence of more and more competitors, GoPro suffered a blow to its innovation ability and unique brand influence. According to Coimbra, the annual growth rate of motion cameras will increase to 11.24 percent in the future, leading to a large number of competitors entering the market, trying to compete for a share of the market.
On the other hand, although GoPro is a large public company, its internal organizational structure and lead to excessive concentration of power. In other words, the unitary structure of the organization threatens the effectiveness and correctness of the decision-making process. In 2016, GoPro decided to be the first to enter the unmanned aerial vehicle (UAV) space because it saw the huge demand in the UAV market and the future development trend of UAV. However, a lack of understanding of drone technology and an overly optimistic view of the drone market led GoPro to fail and announce the launch of the drone market. During that decision, GoPro’s profit margin fell to -31.5% and the company ended up losing $419 million in 2016.
In general, GoPro as a company to innovation as a source of continuous development of power. When the motion camera market is driven by the growth of the consumption in the electronics industry by the macro economy, the overall market will have a trend of rapid growth in the future. At this time, GoPro will lose its living space due to the decline of market share and the increasing participation of competitors in the industry. Under such conditions, GoPro will face the pressure of technological innovation and the increase of operating costs caused by the overall industry competition. On the other hand, as GoPro matured into a Renaissance, it needed to adapt its organizational structure so that it had a more specialized structure and devolved power to various departments. Only a more specialized organizational structure can obtain more favorable information and make more correct decisions in the decision-making process.
Recommendations
It is suggested that GoPro should follow the above two suggestions for technical development and adjustment. First of all, the rapid development trend of the motion camera industry has increased the number of competitors, but GoPro should find its own competitive advantage while recognizing the current situation. As a pioneer in the sports camera market, GoPro has a certain degree of brand influence and brand image. Therefore, for its own advantage, GoPro should take advantage of the early entry into the industry, research and development technology at the same time to take the lead in market demand segmentation. Let the market users can choose their favorite products. Because GoPro’s product differentiation is so severe that the market also comes with a premium.
In addition, the failure of the UAV market is not only the blind following of the market and the wrong decision of the top management, but also the immaturity of the UAV technology. Because the drone market is so new, GoPro jumped in with no mature technology or knowledge of the product and paid a huge upfront investment. According to Lanca’s analysis, the Asia-Pacific UAV market will grow from $1.41 billion to $65.3 billion between 2019 and 2024. It can be seen that the UAV market is indeed a huge business opportunity and emerging industry. Therefore, GoPro needs innovation and research on UAV technology in its future development path.
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