Nick Woodman and GoPro - Case Study Example

Nick Woodman slept in the vehicle during marketing trips. The entrepreneur was everything rolled into one; he was the truck driver, R&D guy, customer service executive, product designer as well as a salesman of GoPro.

Business for GoPro
The sales of GoPro have doubled every year since its inception. In 2012, the company generated revenue of $521 million (Mac). The revenue spiked to $985.7 million in 2013. GoPro's net income also increased to $60.6 million in 2013, a substantial increase from its net income of $32.3 million in 2012 (Poletti). While the revenue of GoPro continues its northward trend, the company’s profitability has not kept pace. GoPro reported a net loss of $19.8 million in the quarter that ended June 30, 2014 (GoPro). The company has many competitors including Sony Corp. Numerous Chinese camera brands also compete with the GoPro range.

The present-day smartphones, equipped with video cameras, also pose as indirect competitors of GoPro. The company offered shares to the public through an IPO in June 2014. The shares were offered at a top-of-the-range IPO price of $24 per share. The stock surged 100 percent within the first week to trade at $48. Woodman sold 3.6 million shares and garnered $86 million from the IPO (Solomon). GoPro is listed on Nasdaq under the symbol GPRO (Picker). The stock is currently trading between $45 and $50 (Meadows). The stock's 52-week high has been $ 98.47 while the 52- week low has been $ 28.65 (NASDAQ.com).

GoPro’s Target Market
GoPro manufactures digital cameras that are ideal for unique point-of-view perspective videos and can be best used in adventure sports (Mac). GoPro targets surfers, skiers, and sky drivers who want to record their escapades. The potential in this niche market is huge (Burrows). The tiny, rugged cameras can be used in umpteen other situations. The target market has extended to Hollywood directors, NFL teams, rock band groups, police, and even the U.S. military (Mac).

Marine biologists use these gadgets for undersea research while teachers use them to give students an idea of what it is like to operate the Curiosity rover on Mars (Burrows). GoPro has a strong brand identity because it enables consumers to capture and shares meaningful life experiences. When consumers recorded and uploaded user-generated GoPro videos online, the company’s YouTube page generated close to 170 million views (Burrows). The social networking platform thus gave a lot of mileage to the company. The volume and quality of GoPro-created content have the potency to engage customers. GoPro, therefore, intends to become a media company.

Nick Woodman and Principles of Entrepreneurship
Woodman started as a one-man army. He worked assiduously for 20 hours a day, 7 days a week. He wrote off his personal life to succeed in his business venture (Milord). 37-year-old Woodman is a highly motivated individual and has strong willpower (Islam). Woodman was driven by 'constructive fear' as well as a rock-solid commitment to succeed. The failure of his earlier two start-ups; EmpowerAll.com and Funbug did not deter Woodman from following his passion (Mac). Woodman urges entrepreneurs to shun self-doubt and insecurity. He claims entrepreneurship is about being well-informed and taking risks. He advises entrepreneurs to keep trying till they succeed (O’Connor). I would like to read ‘From Rock Bottom to Billionaire’ because I feel it will be a treasure trove of advice for budding entrepreneurs.

Encouragement from GoPro

I intend to take up a job after I complete this course. Eventually, I want to start my business venture. The job will help me gain valuable experience as well as accumulate some money that will be invested in my business. The course at IUPUI / Kelley School of Business has helped me by providing academic rigor and exposing me to various real-life corporate situations. Hard work and tenacity are perhaps the two most important characteristics required for success. Read More