Question 1:

Several factors contributed to GoPro's success in the market. First and foremost,

GoPro's success stemmed from their introduction of a truly distinctive product. Prior to

GoPro's entry into the market, high-quality action cameras were typically expensive, while

budget options offered limited functionality and were often cumbersome. GoPro broke this

pattern by offering a compact action camera that combined the capabilities of more high-end

cameras. This innovation was a game-changer in the industry, allowing GoPro to carve out its

own niche with a Blue Ocean Strategy. To solidify their position, GoPro continually sought

opportunities for product enhancement, regularly releasing new camera models with

improved features.

Competitive pricing played a crucial role in GoPro's rise to prominence. While their

cameras were not the cheapest on the market, they were considerably more affordable than

their high-end counterparts. This made GoPro cameras an attractive choice for a wide range

of consumers seeking quality action cameras without breaking the bank.

Lastly, GoPro's adept use of the evolving media landscape and innovative social

media strategies significantly contributed to their success. Instead of conventional

promotional tactics, GoPro encouraged camera owners to showcase their product use and

experiences on various social media platforms. They even offered incentives for users to

upload their content. This approach was a stroke of genius, as it diversified GoPro's audience,

expanding beyond just sports enthusiasts (the primary users of action cameras) to include

everyday individuals eager to share their life experiences. By harnessing the power of online

media, GoPro built a substantial following, amassing over 6.5 million subscribers on

YouTube by the end of 2018. Additionally, GoPro expanded its presence within the sports

community through partnerships with organizations like the NHL and ESPN.
 Several factors also contributed to GoPro's eventual decline in the market. Firstly, the

rise of competition from well-established camera companies posed a significant challenge to

GoPro. Brands with a long history of market presence and strong brand recognition, such as

Polaroid, Sony, and Panasonic, began developing their own action cameras. Leveraging their

resources and expertise, these companies introduced action cameras with additional features

that GoPro's offerings lacked. This increased competition led to a market filled with similar

products, making it more challenging for GoPro to maintain its unique selling proposition.

Furthermore, GoPro's product innovation eventually plateaued. While GoPro had

initially pioneered the action camera market with innovative and high-quality products, they

struggled to keep up with competitors who continuously improved their offerings. As a result,

the market's perception of GoPro's product releases became increasingly negative, as their

cameras were outclassed by the evolving capabilities of rival products.

A significant misstep for GoPro was their attempt to diversify into the drone market with the

Karma drone. This move put them in direct competition with DJI, a well-established leader in

the drone industry. Despite investing substantial time and resources into the Karma drone, it

suffered from critical malfunctions, leading to an immediate recall after its launch. This

failure not only damaged GoPro's reputation but also resulted in financial losses.

In summary, GoPro's decline can be attributed to intense competition from established

camera companies, product stagnation, and an ill-fated venture into the drone market. While

GoPro had initially been innovative and inventive in both their product design and marketing

strategies, they struggled to maintain their competitive edge in a market increasingly crowded

with similar offerings and were unable to succeed in diversification efforts.

Question 2

To stage a successful comeback, GoPro should consider several strategic actions that

leverage its strengths and address its weaknesses. The first crucial step is to revitalize its

product development efforts. GoPro needs to catch up with and even surpass the features

offered by competing products. This can be achieved through a two-pronged approach.

One option is to explore strategic partnerships with established camera companies.

Collaborating with these firms can bring in new technologies and expertise that GoPro might

lack in-house. This collaboration could result in the creation of a new action camera with

competitive features and capabilities. By focusing on research and development, GoPro can

ensure that its product line remains cutting-edge and appeals to consumers looking for the

best action camera on the market.

Another avenue for product development is to refine and expand their product line.

This could involve creating the Karma 2, an improved drone that addresses the shortcomings

of the original model. GoPro should consider diversifying its offerings beyond action

cameras. Exploring related products such as wildlife cameras or other action-capture devices

can help the company cater to a broader range of consumer needs.

Regardless of the product direction, GoPro must maintain a strong online presence.

The company should continue to utilize the evolving social media landscape to connect with

consumers effectively. While they have already built a substantial following, there should be

an ongoing effort to expand onto newer and emerging platforms, such as TikTok, to reach

younger demographics and stay relevant. Furthermore, GoPro could explore integrating their

cameras with these platforms, facilitating seamless content creation and sharing directly from

the camera.