Global Production Network of GoPro Cameras - Case Study Example

Global Production Network of GoPro Cameras Name Course Professor Institution Date Introduction A global production network is one whereby the interlocking knobs and links go beyond the country of origin. The links cover across the globe and beyond national boundaries integrating international territories. The primary aspect of global production network is value chain component. This form of network spurs international development. For this paper, a product known as GoPro-Hero 4 camera will be evaluated. It is a type of powerful camera used majorly in the film industry. GoPro Company Ltd centered in San Diego is the sole manufacturer and distributor of GoPro cameras. GoPro Company relatively the most prominent producer of action cameras commonly used in performing extreme-action Videography. Recognized for its “Hero” cameras, GoPro enjoys a leading role in the action video camera marketplace with slight antagonism from Panasonic, Nikon, and Sony and other related firms. GoPro Company has installed an organizational structure that is suitable for its global production network. This well-illustrated under the organizational structure section. The firm a well-coordinated distribution plan and marketing strategy which are the primary drivers of its global production network. Forms of labour involved in the production of GoPro-Hero 4 Distribution of labour and specialization is the order of the day in GoPro Company. The firm is segmented into departments which work hand in hand to enhance the expected final results by the enterprise. Under this section, various stages of the camera production will be evaluated according to their importance. The production of GoPro has various stages before arriving at the final product and finally reaching the final consumer. The first stage is the design and production of the lens of the camera and the camera itself. A designer digitally or electronically sketches the camera and the lens. The sketch is done using Computer Aided Design-CAD software. The design department usually generates it and distributes to the other centers of production. During this stage, various components of the camera are decided and set for the prototype and hence final product. Other features like the manner in which the various components interfaces with the designed lens are also considered. The figure below shows the lens design. Figure 1: Lens camera After the lens has been designed and developed, its performance is then subjected to computer simulation for testing. If all the required performance effects have been arrived at, then the other parts of the camera follow in the production chain. Another department does the body of the camera and the motherboard. This can also be done at all GoPro centers across the world. It is possible because the job involved is fixing the lens on the camera. The following image shows a sample structure of the other parts attached to the lens. Figure 2: connecting different parts. Once the testing process is successful and approved by the appropriate bodies, then the prototype is sent to mass production. For GoPro, a polycarbonate plastic material is used in the casing. The injection modeling process which the housing is subjected to makes it extremely durable. The final case of the camera is sent to the production centers for mass production as well. An example of GoPro design of the casing is shown below. Figure 3: Casing Distribution The distribution channel is another stage involved before the final product reaches the intended consumer. GoPro serves over 100 countries in the world. Therefore, a proper distribution channel is inevitable. When the products (GoPro cameras) leave the production centers, they are directed through the distribution plan to the distributors across the planet (see figure 4) Figure 4: GoPro distribution channel Value addition in every stage of production In every stage of production of GoPro cameras, a significant level of value is added to the product. All the way from design through production to packaging and marketing, GoPro-cameras undergo a value-addition process. The firm hires professionals in all departments as described in the organizational structure later in the paper. The various stages of the camera manufacturing clearly show that the final product emerges as the best in the market delivering great value to the consumer. Different segments of the organization also contribute to value addition of the product. At every stage of production, the cameras are tested on the existing strategy. Every testing done on the product increases the value since any malfunctions are corrected on site. Moreover, there is a quality assurance department that is charged with ensuring the final product offered for sale in of the required quality. Institutional arrangement and organizational structure GoPro company has ensured the organization is structured in such a way that it production network is stable. This structure has various aspects including market mix and market segmentation as well as having structures to counter negative external effects against the product and the firm. These areas of the organization structure enhance and promote the global production network (Ernst, & Kim, 2002). The Market Mix A market mix is a technique by which a company decides the type of product or service to supply in the market. It rotates about four elements which are: Price, Product, Promotion, and Place. GoPro Makes use of this tool to ensure international coverage especially in all film producing organizations like Hollywood and Nollywood and others across the world. Figure 5: Marketing Price GoPro Makes use of pricing policy which is value-based keeping in mind the kind of customers consuming the product. It tailor made and designed for the first level class of individuals with significantly high levels of revenue. Reducing the price level below current level might suggest inferior quality on the product, and hence, the strategy is supposed to remain at the current level. The quality of production shows that the clienteles are eager to purchase the cameras at whichever cost due to the overwhelmingly high performance and excellent use of modern technology and innovation. Product GoPro cameras are developed with advanced expertise and great invention and innovation. The insight that the cameras are of excellent quality and performance oriented puts them to the class of individuals of top social and economic setting. Its forward-looking strategy is inspiring. The cameras have a guarantee of one year which shelters destruction through accidents and other related incidents. Continuous upgrading can be made through improved packaging and casing. Place GoPro cameras are accessible across the globe. Availability is in wholesale and retail in all the countries where the product has been made available The oeders can be made through the website as well. International relationships between GoPro Company and other foreign firms in the film industry is the greatest mode of marketing the cameras. These film companies include Nollywood and Hollywood. Promotion This is the process of making the product known to the customers. It is involves creating awareness to the customers. The principal means of advertising used by GoPro Company are through journals, papers as well as celebrity commendations. These promotions have contributed profoundly to the increasing sales and earnings globally in the recent years. (Peter Dicken 2015). GoPro is new equated to other products like Sony. Therefore, there is increasing necessity to extend or maneuver new strategies and plans for marketing the product. The competition is changing policies day in day out (Cain, P. 2008) and this poses a threat to the enterprise. A plan to counter this menace is also necessary. Organizational Structure GoPro has adopted a professional bureaucracy form of organizational structure which relies on several factors to aid in its coordination. These are: • Standardization regarding skills and other regulatory parameters like training indoctrination as well as design. • The system only allows the hiring of specialists or professional in different fields to work in the operating core leaving relatively little control or supervision over their work since they are hired as professionals in their respective duties. • It involves well trained and indoctrinated staff • Standardization and Specialization of skills serve as the main arm of coordination among the operating specialists. The standards adopted by the GoPro are largely from outside the primary structure. This is because the professionals bring their skills into the firm as well as bureaucracies from their governing professional bodies. The professionals are expected to exercise their duties according to what their expertise demands as well as demands of customers across the globe (Ernst, & Kim, 2002). The work of the managers in GoPro is mainly centered on ensuring the bureaucratic machines are up to date and working well at all times. These are the performance-based organizations. The performance of every unit is measurable under some laid down parameters. Strategies in this form of a structure are formed by individual professionals in the organization according to standards of their respective professional bodies under which they serve. In as much as the professionals may exercise their independent decisions on what to offer organization in question, their professional body has its standards which ought to be followed at all times. Its operating core has autonomy implying there is considerable standardization of work within the firm. The operations department is comprised of analysts and associates who work tirelessly to ensure the customers are always satisfied. GoPro Company hires professionals who bring with them specialized skills and training into the positions they hold. This is as a result of the complexity of the tasks associated with such posts. However, GoPro Company makes these complex tasks very simple through the standardization of different functional units. The organizational structure is never affected by the size or the age of the firm because most of the staff hired at GoPro Company are highly qualified. Regardless, the staff will uphold the existing expertise and level of knowledge needed to sustain the high standard of professionalism exhibited by GoPro Company. The firm has a strategic apex although all powers, formal and informal are found in its operations (Ashton, D. N. 2004). The staff at GoPro Company work in a highly autonomous way. Goldman Sachs has hired people with the level of expertise and knowledge required and expected in the camera manufacturing industry. This has promoted the stability of the global production network. Conclusion and recommendations The global production network of GoPro cameras is one of the world’s most efficient channels. The adoption a professional bureaucracy in its organizational structure enables the execution of the global production network to be enhanced. The system has also been reinforced by the marketing strategy described above giving the GoPro cameras a competitive edge over other comparable products in the market. Conclusively, GoPro production network is improved after every successful production. The professional nature of production which incorporates innovation increases the sustainability of the channel. This kind of channel gives the reason why I chose this product for the purpose of this paper (Peter Dicken 2015). The choice of the structure shall be based on the size of the firm and industry it serves among other factors. It is evident that a good structure aids in ensuring efficiency in the global production network. It is the only way that staff can be assured of some career growth as there shall be several ladders before working at the strategic apex. It is never too late to adopt a better structure and for GoPro, enhancement in its structure is important so as to remain the dominant firm in the camera manufacturing industry. References Ashton, D. N. (2004). The impact of organizational structure and practices on learning in the workplace. International journal of training and development,8(1), 43-53.Cain, P. 2008. Limitations of conventional market-mix are modeling. [online] Available at: http://www.marketscienceconsulting.com/wp-content/uploads/2012/10/Limitations-of-Conventional-Market-Mix-Modelling.pdf [Accessed: 3 Apr 2014]. Ernst, D., & Kim, L. (2002). Global production networks, knowledge diffusion, and local capability formation. Research Policy, 31(8), 1417-1429. Henderson, J., Dicken, P., Hess, M., Coe, N., & Yeung, H. W. C. (2002). Global production networks and the analysis of economic development. Review of international political economy, 9(3), 436-464. Kotler, P., and Armstrong, G. 1991. Principles of marketing. Englewood Cliffs, N.J.: Prentice-Hall. Peter Dicken (2015) Global Shift: Mapping the Changing Contours of the World Economy, 7th Edition. Read More