hi u are require to just answer this two question Question 1: do a one page summ

Question

hi u are require to just answer this two question

Question 1: do a one page summary of this case study

question 2: what difficult question will u ask to this company if you are debating thats all  

.l Singtel 1:37 PM i doc-0c-1g-docs.googleusercontent.com 596 of 913 GoPro's Struggle for Survival in 2016 David L. Turnipseed University of South Alabama John E. Gamble Texas A&M; University-Corpus Christi oPro was among the best examples of how the fourth quarter of 2015, its revenues dropped by a company could create a new market based 31 percent from the prior year. In addition, its net upon product innovations that customers income fell by 128 percent to a net loss of S34.5 mi understood and demanded. The company had grown lion. By the end of December 2015, the stock traded from a humble beginning as a homemade camera at less than$20. A summary of the company's finan tether and plastic case vendor in 2004 to an action cial performance for 201 through 2015 is presented camera vendor with $350,000 in sales in 2005 ts in Exhibit I first full year of operation) to a global seller of con- sumer electronics with revenue of $1.6 billion in January, the company's stock was selling at less than 2015. The company's shares had traded as high as te IPO price, and the company laid off 7 percent of $98 in October 2014, just months after its initial pub its workforce. In early February, GoPro's stock traded lic offering (IPO) in June 2014. In 2014. GoPro was below $10-see Exhibit 2. First quarter sales in 2016 ranked number one most popular brand on YouTube were down 50 percent from the first quarter 2015 and with more than 640 mlion views, and an average 58 percent from the fourth quarter 2015. Net income of 845,000 views daily. In 2015, the average daily had fallen from $168 million in the first quarter of views were up to 1.01 million. Abruptly, in the third quarter of 2015, GoPro's magic disappeared and, by Coight DavidL. Tarnipseod. All rights sserved GoPro's sales continued to slip in 2016. In mid- XHIBIT Financial Summary for GoPro, Inc., 2011-2015 (in thousands, except per share amounts) Consolidated statements of operations data: 2015 2014 2013 $985,737 361,784 2011 $1,619971 1,394,20S 627,235 $526,016 227,486 $234,238 122,555 Gross profit Gross margin Operating income Net income Net income per share: 450% 187,035 128,088 367% 98,703 60,578 43 2% 53,617 32,262 38,779 24,612 $0.54 $047 $0.26 $024 $0 25 Saunce: GoPro,Inc. 2015 10-K C-184 PART 2 Cases in Crafting and Executing Strategy EXHIBIT 2 GoPro's Stock Performance, June 2014-July 2016 JJAS O N D15 FHAMJJASON D16 FMAMJJ Year

Explanation / Answer

GoPro started in the year 2004 as a homemade camera tether and plastic case vendor. Soon it incuded action cameras to its product line with 350,000 sales in the first year of its operation and has been named as the global seller of consumer electronics. It went public with initial public offering in the year 2014, and just after a few months, its share value stood at $98 in the same year. It has been ranked number in being the one of the most popular brand on YouTube with more than 640 million views.

GoPro's best product was Action Camera. It was actually leading the action camera industry in 2015. Slowly new entrants emerged in the market and the competion increased. This has led to increased expectations in the reduced price of the product, increased quality and better features and slowly GoPro started moving back and gave way ahead to new competition. With the new developments, the consumer focus on action camera has shifted towards drones. So, very unfortunately, the magic done by GoPro disappeared in the second quarter of 2015 and there was a drop in the revenues. The downfall has slowly started taking its due course.

GoPro sales has slipped further in the year 2016, and company's stock sell less than IPO price and company laid off 7 percent of its workforce. The first quarter sales in 2016 were down by 50% and 58% by fourth quarter sales. In the same period, GoPro has introduced HERO4 camera, and its performance was termed as very poor. Hence company has reduced its price by half, and ultimately reduced its product line aswell. GoPro has serious problems in the mid 2016 and despite that it tried to sell more action cameras in the market. The company which started as a successful venture has failed miserably by adding its product line and as its focus shifted to survival in the market.

As the drone industry progressed, the majority of the drones were purchased for video and photography. Drone sales growth accelerated and this las lead to downfall of action cameras. In April 2016, drone sales growth has accelerated four times greater than action cameras in the same period. New drone startups began to emerge and drones with 4k camers accounted for more than 33 percent of the dollar sales in the twelve months ending April 2016.

In June 2016, GoPro's action camera offerings comprised of three models - HERO4 Black, HERO4 Silver, HERO Session. Hero4 Black was advertised as professional quality and the company's more advanced camera, and was sold for $499.99. Hero4 Silver captures HD video and photos and had built-in touch screen display to control the camera and playback shots and enabled built-in video trimming. It was sold for $399.99. Hero Session was the smallest and the lightest of all the three cameras, and could record upto two hours on a charged battery. It was sold at $199.99 in 2016.

GoPro faced increased competition from major competitors including Samsung, Nikon, Canon and Sony Corp. Despite the crash in sales and profits, GoPro was considered as undisputed leader in the action camers industry, with an 85% of the share as per the company's management. So, the suggestion for GoPro is, instead of focusing on the new markets, new hardwares to sell in the saturated market, or entering into crowded drone market , or developing software which does not produce profit, GoPro should limit its options and try to maximize its visibility and improving its existing product portfolio of the action cameras. This will enable the company to be an attractive option for the investors and stakeholders of the company.

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