Abstract

Founded in 2002 by Nick Woodman, GoPro’s mission was to enable users to share their life through photos and videos by capturing, creating and sharing the world’s most GoPro perspective with versatile cameras. Since then, the brand has evolved and became the first mover and the leader of the action-camera market with a significant market share of 47.5%. GoPro’s product line has progressively evolved to offer the best quality videos and pictures. Its unique business model and its capacity to build a strong value and brand enabled it to reach $0 to $1.62 billion of revenue, and $673 million of profit in just over 10 years by FY2015 . However by FY2016, GoPro’s performance went down and the company recorded a loss of $419 million, with sales and profit falling to $1.18 billion and $462 million respectively, and a stock price falling from $98 to close below $28 . The company has suffered from inoperative innovation and production problems resulting in defective cameras, as GoPro also failed to understand and anticipate consumers’ changing needs and tastes, which is not helping since competition has intensified and global players started to introduce more competitive offerings. Woodman initiated a five actions plan so as to save his company and to return it to its full-year profitability by 2017. His initiatives focused on realigning the resources on key priorities, in order to lower operating expenses, while providing more innovative and simplified products, as well as creating a better user experience. This, in addition to expanding internationally to benefit from new market opportunities. Woodman set target revenue of $190 million to $210 million in the first quarter of 2017.

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