MNG91002 – EntrepreneurshipAssignment 2: GoPro
The following questions are all based on the GoPro case study published in the Forbes Magazine. Basing your arguments on the topics that you have studied throughout the unit, write a report addressing all of the following questions. The report/questions will cover both aspects of the unit.
Assignment structure and marking allocation
Entrepreneurship (25 marks)
Question 1: Whilst Nick Goodman was confident that his business idea for a cinema-grade mini camera could ultimately lead to success, he did initially question his ability to bring his product to market ie. ‘He gave himself four years to make it work before he would drop his idea and enter the workforce’. Therefore, it is clear that there is a ‘dark side’ of entrepreneurship. Discuss three major traits that are associated with the dark side of entrepreneurship. Justify your response with reference to academic sources (e.g. academic journal articles, textbooks, etc.). (10 marks)
Question 2: Peter Drucker, a leading scholar in the fields of entrepreneurship and marketing, is cited in your unit material numerous times. When speaking of entrepreneurship, Drucker once stated: ‘Most of what you hear about entrepreneurship is all wrong. It’s not magic; it’s not mysterious; and it has nothing to do with genes. It’s a discipline and like any discipline it can be learnt’.
What evidence exists in the GoPro case study that supports and/or refutes this statement? Ensure your argument(s) are developed through direct reference to concepts, tools and techniques evident in the unit material. (15 marks)
Marketing and Strategic Planning (60 marks)
You will note that the case study article is dated late 2014. Much has changed in the action camera industry, including the development of higher resolution smart phone cameras, now capable of capturing 4K video footage. Therefore it is expected that you review more recent activities and outcomes for the GoPro company when attempting to answer the following questions.
Question 1: Since the publication of the case in 2014, how has GoPro gained a competitive advantage from their marketing processes? Provide a theoretical analysis of the reasons for the achievement of this advantage. Draw on other recent resources when justifying your analysis (30 marks)
Question 2: The GoPro case study specifically identifies future threats to the company’s strategy in 2014. What threats do you feel GoPro faces in 2019 and beyond? Provide a theoretical analysis of this threat scenario and give recommendations on how GoPro should respond to this. (30 marks)
Academic rigour (15 marks)
This is a substantial piece of scholarly work and will require extensive engagement with both unit theory and the case study.
|SOUTHERN CROSS UNIVERSITY|
ASSIGNMENT COVER SHEET
|Assignment Title:||Case study – GoPro|
Entrepreneur term refers to the individual that exercises start-up by managing and organizing venture to gain advantages of a favourable opportunity. On the other hand, entrepreneurship has been both studies of the manner the latest business can be created along with the actual procedure of initiating new business. In the substantial section of scholarly work, it has been found that confidence; committee towards goal and hard work is the important trait of an entrepreneur. Go-Pro is rapidly growing the digital-imaging organization, and crucial entrepreneurial decision-making has been important for the company's success in a competitive market. It has been observed that entrepreneurial skills are developed through discipline and gobbling valuable market opportunities can help Go-Pro to achieve competitive advantages. The user-generated content has been effective marketing strategies applied by the company to attract and retain its profitable position.
An entrepreneur is an individual that sets businesses taking monetary risks in anticipation of profits. On the other hand, entrepreneurship refers to the activities involving the procedure of launching, running and designing new business from small start-up to a large organization. In relation to such aspects, the assessment unit aims to discuss the associated dark side of entrepreneurship. In context to the given case study of GoPro, the statement that entrepreneurship is not magic, but it is discipline will be evaluated. The study will argue that entrepreneurs are not born, but are made through practice, obtaining skills and moving forward from failure to success. Further observation noted to case study article, the competitive advantages gained from marketing procedure, future threats to organizational strategies will be analyzed as per theoretical perspectives.
Question 1: Discuss three major traits that are associated with the dark side of entrepreneurship
The people that create businesses or business are known as entrepreneurs. An entrepreneur has varying personality behaviour and traits that make them succeed and to be successful in their businesses. On the other, sometime such traits may prove to play a detrimental factor in their role as co-worker or manager. Spivack&McKelvie (2018) explained that the dark side of the entrepreneurship involves energies important for accomplishing business dreams having origin in needs and desires that are dysfunctional in the business environment. Entrepreneurs observed to be goal oriented and take responsible decision along disliking routine or repetitive works. A creative entrepreneur has great perseverance level, high energy and imagination that combine with need to calculate risks and moderate ill-defined perspective to something concrete. Nick Woodman, in the year 2002, has founded GoPro with an aim to provide better ways to film their activities. The company started wrist strap and with 35 mm camera made from plastic scraps and old wetsuits led the company to grow internationally with selling 26 million GoPro cameras over 100 nations. As an entrepreneur, Woodman's characteristic of high energy level, self-reliance, compliance to break the rules and strong determination has been helpful to lead the business at the successful position. His trait of supremely confident and does not afraid to challenges existing circumstances had made him in the list of youngest billionaires. On the contrary, there exists a certain dark side of entrepreneurship too. One of the dark-side personality measures depends on personality disorders representing the maladaptive manner of thought and behaviour deviating social norms. The initial factor depicts attitudes designed to distance from each other. In such, an entrepreneur tends to avoid concern for other’s goals, issues and neglect outside pressure. In such relation, the personality disorder certainly noted in Nick reflected his lack in the interest of others, mistrust and conforming to regulation. Klotz &Neubaum (2016) argued that sense of distrust closely related to the requirement for control had been another dark-side. At the time, strong distrust associated with the requirement for control takes over the circumstances for the business becomes serious for the organization. As in related to Go-Pro, the management desire to take control of the organization has led individuals to stop acting-independently, sycophant set the tone, and political games were rampant. Such a consequence has led failure to establish sound inter-personal relationships. The third trait associating to dark-side of entrepreneurship relates to the behaviour intended to ingratiate own-self to others (Chell et al. 2016). In here, the entrepreneurs are overly strict or agreeable to adhere to procedures and rules. Such common pattern highlights the stereotype of entrepreneurs, where individualists are passionate about their ideas, however relatively unconcerned of others. Therefore, entrepreneurs are obsessively passionate about their works, and however people need to keep a balance between personal and professional life in which happiness and closeness to others is the main factor.
Question 2: Drucker once stated: ‘Most of what you hear about entrepreneurship is all wrong. It's not magic; it's not mysterious, and it has nothing to do with genes. It's a discipline, and like any discipline, it can be learnt'. What evidence exists in the GoPro case study that supports and/or refutes this statement?
The process of finding exchange collaborator and gaining resources has been important challenges for individual wishing to be entrepreneurs in growing and creating ventures. In order to conceptualize the way entrepreneurs master such hurdles, the perspective of ‘cultural entrepreneurship’ has been drawn. The skilled cultural procedures are important and allow entrepreneurs to attract resources for growing and developing the new organization. It can be deduced that a disciplined action is what makes and build an entrepreneur. Chell et al. (2016) Supported that entrepreneurship is not magic; instead of teaching competencies and skills contributes towards building a strong entrepreneurial career. It is noted that lack in skills that certainly comes from disciplinary actions as repetitive learning, adaptation or awareness of business context may lead to failure in the new venture. In the case of Goo-Pro owner it can be said that entrepreneurship is not about the gene, it requires disciple, and such discipline can be learned. Woodman family were not any part of the entrepreneurial background and never been supportive of Woodman's new ideas and concept of entrepreneurship. Even though he was an average scorer in academic life, Woodman gave himself four years to make him committed, and discipline work prior to the new idea can be dropped and implemented in the workplace. It can be deduced that entrepreneurship, innovation and creativity are recognized engines to drive business growth, socio-economic improvement and entrepreneurial culture. An entrepreneur is made through failures, success and obstacles and not born. The quality of an individual to be skilled in managing, flexibility, tenacity, value accomplishment over money and high-degree commitment all come from disciplines.
Question 1: Since the publication of the case in 2014, how has GoPro gained a competitive advantage from their marketing processes? Provide a theoretical analysis of the reasons for the achievement of this advantage
In order to make any business successful, it is essential that the entrepreneur needs to set its company apart within the market through its unique business idea. This uniqueness in the service or product being offered will establish superiority in the market and secures the business sustainability over a long period of time (Vanpoucke et al. 2014). The entrepreneur needs to develop the business capability with respect to the idea, customer service, innovation, flexibility, responsiveness that allows the increment of sales. The hardship of a decade has provided the entrepreneur Nick Woodman with the fastest growing digital imaging company in the world called GoPro.
Aspects of Completive Advantage for GoPro
Innovative Product: As per the provided Forbes case study, Nick Woodman was the brains behind the development of the GoPro, which was initially intended for adventure surfers so that they could record their actions while surfing. This became immensely popular among the online blogging communities. It was necessary to be made sure that the quality of the product being provided could withstand the adversities of adventure sports (Ballarin et al. 2015). This was necessary for positive interaction with the users and the initial consumer base of GoPro. The target audience was then able to create, curate and share their experience with the camera through the online media generation.
Sales and Growth: The provided case study highlighted that initially, GoPro collected $350,000 in the first year of its business. That time Nick Woodman was responsible for sales, packaging, research and development as well as product engineering. As per the Forbes report, GoPro Company now enjoys a profit margin of 15%. In 2011, GoPro was able to get business ventures with Steamboat Ventures, Riverwood Capital and now Foxconn. Even at the time of the financial crisis in 2008, the company as making 8 Mdollars’ worth of sales. It was following that in 2010 when Best Buy decided to sale GoPro in their flagship stores, and GoPro became a mainstream video camera manufacturing business.
Marketing Strategy: The success criteria could be assessed with the marketing strategy of GoPro could be understood with the dependency on user-generated content. Initially, Woodman's idea was intended towards surfers to record their adventure sports activity while surfing. This was effective in attracting online content creators all over the world (Somerfield et al. 2018). Woodman designed the product in such a way that it could withstand the adversities of the adventure sports and still be able to record the activity. This provides the adventure athletes with the ability to travel to different locations with unique recording angles that help to create better online content. This user-generated content popularity has been the strategy for success for many video camera makers, but the usability, strength and the unique shot angles create a content marketing platform. There was no usage of any adverse marketing strategy for the success of GoPro. This contributed greatly to creating a brand image all across the globe. The users post their content on social media each day, which can be estimated to approximately 6000 videos every day.
Value: The popularity of the GoPro was the creation of the Point-of-view angle shorts in the video recording field. The cinema grade panoramic shot of the adventure sports, surfing activities, etc. has transformed the way video imaging concepts in the world (Morgan 2016). World-renowned athletes, as mentioned in the provided Forbes case study to an award-winning director like Michael Bay, have been using GoPro to get the unique angle. There are even military applications for the GoPro which is being utilised to invigilate training exercises on field. It was the investment of the CEO, to make GoPro a social media sensation (Lin et al. 2017). The provided case study highlighted that Shaun White, the American professional snowboarder, skateboarder and musician, used GoPro to shot the adrenaline rushed videos. Additionally, Felix Baumgartner, the Austria based skydiver created GoPro video of plummeting towards the earth using five of the camera pieces created a huge demand for the product. The company's YouTube Channel has 222 M views and 4.7 M likes on its Facebook page,
Question 2: The GoPro case study specifically identifies future threats to the company’s strategy in 2014. What threats do you feel GoPro faces in 2019 and beyond?
Pricing Issues: It is essential for a business to set the pricing strategy with consideration of its intended audience. The initial pricing strategy was not a problem for GoPro, but the recent lowering of the price for the GoPro Company indicated the change in the customer purchasing strategy. This is due to the increasing competition within the smartphone manufacturing community. The lack of willingness among the consumers to pay for GoPro equipment but rather on smartphones gave a company a setback (Liu et al. 2018). There was an estimated 15% decrease in the company shares as of 2015, which needed to be considered for the long term sustainability of the business. This could be overlooked with the fact that the lack of competition in the market would always create value for the brand.
Competition: The prospect of sales in the unique action video shooting category created by GoPro paved the way for other developers leaping into the genre. There are concerns regarding the sustainability of the monopoly that GoPro started with its products. iON Worldwide has developed its very own prototype of an action video camera and introduced in 2012, as indicated by the provided case study. Even Sony which the GoPro Company beat by sales in Best Buy creating history is now innovating their very own action camera with image stabilization and stereo sound. This might possibly create threats when mainstream camera manufacturing giants enter the niche market GoPro created for itself.
Market Uncertainty: The growing demand for the action video recording, which is the value proposition for the GoPro might be diminished over the course of time. The current trends and the popularity among the younger generation might keep the sales at high, but viewers will lose interest eventually (Horn &Tokarski 2016). The same thing was the case when smartphones replaced the previous mobile phone versions. The hardware manufacturing community is moving towards the improvement of the smartphones unanimously, which might be troublesome for camera manufacturing companies like GoPro. The devoted technicians and the software developers working for Apple Inc and Android might possibly provide competition at a much cheaper price. GoPro Company would need to improve their product and bring n the latest innovations to maintain the sustainability of the business. The upcoming business strategy which the company decided to keep confidential might determine the future of GoPro.
The assessment based on Go-Pro discussed entrepreneurship in terms of addressing entrepreneurial traits, its dark-sides and role of continuous commitment and confidence that comes from discipline. From the analysis in the first part of the task, it becomes quite clear that entrepreneurship is a discipline like all other disciplines which requires hard work to reach the top level. The study has found out that entrepreneurs are not born, they are made. In context to varying theoretical aspects as analysed in the second part of the assignment, the strategic and marketing planning for GoPro has been mentioned to strengthen competitive benefits from marketing procedures. Further, the study recognizes future threats of the company for which appropriate strategies and adequate allocation of resources help the business to mitigate identified threats.