Strategic audit for Go Pro Inc. Contains corporate governance, mission, vision, external factors, internal factors, Strategic factors.

1. GoPro Inc.
Strategic Audit
Kairi Niinepuu-Mark, TUT 2015

2. I A. CURRENT SITUATION
GoPro is an compact action HD camera.
2014
• developed new products,
• expanded their brand in new markets,
• June GoPro went public, IPO
• revenue $1,394M, Gross profit $624M,
devices shipped: 5,4M
- Market is highly competitive.
the market leader 80% of market of adv.
cameras.

3. B. MISSION AND OBJECTIVES
+ GoPro helps people capture and share their
lives’ most meaningful experiences with others.
+ The core of the business is to enabling
engaging content.
We believe GoPro is well-positioned to become
the first media company whose content is
captured exclusively using its own hardware.
- the growth of the experience economy and
competitors developments brings more direct
competitors to the market.
Comments:
company mission, objectives, strategies and
policies are related to each other.
company operates in new area of the business:
experience economy that supports the
objectives and mission

4. STRATEGIES
+ GoPro is working to expand internationally, innovate new features in its cameras and
promote the GoPro brand as a source of original and user-generated content.
GoPro develops hardware and software solutions to alleviate consumer pain points
associated with capturing, managing, sharing and enjoying engaging content.
Key components of the strategy include:
• Continue to introduce innovative capture devices
• Develop seamless content management, editing and sharing solutions
• Scale as a media brand
• Expand into new vertical markets
• Grow internationally
• Expand in-store brand and sales footprint
• Extend strategic marketing relationships
• Expand brand awareness through increased advertising
Comments strategy points are connected with other audit components in I.B.

5. POLICIES
• Product: Money-Back guarantee 30 d (webstore purchases)
• Services: GoPro international compliance (safeharbour), Privacy
(automatically collected information), Use of Information, Sharing,
correcting, updating information,
• Shipping Policy, taxes etc.
• Trademark and Brand Policy
(kas on selgelt väljaöeldud või aimatav käitumisest?
kas missiooni, eesmärk, poliitikad mõjutavad operatsioonide rahvusvahelisi
operatsioone?
-Comments: All parts are related to each other. Global

6. II. CORPORATE
GOVERNANCEA. Board of Directors
• Nicholas Woodman - Founder, Chief Executive Officer and Chairman, GoPro, Inc.
• Anthony Bates - President, GoPro, Inc. Former CEO of Skype Inc., EVP of Microsoft Inc, Sisco Systems, eBay board of Dir.
• Edward Gilhuly - Managing Partner, Sageview Capital, has extensive corporate management experience and his significant experience
in private equity and finance.
• Kenneth Goldman - Chief Financial Officer, Yahoo! He provides a high level of expertise and significant leadership experience in the
areas of finance, accounting and audit oversight
• Peter Gotcher (2014)- Private Investor, broad understanding of the operational, financial and strategic issues facing public companies
and his background providing guidance to companies in the digital media industry.
• Michael Marks - Founding Partner, Riverwood Capital, LLC Has significant experience as the chief executive officer and member of the
boards of directors of various companies, his expertise in financial and accounting matters and his expertise in private equity matters.
- no women in board of directors. Competenecs are related with finances mainly.
• Comments: competences in visual design, tecnology, e-commerce; finance and
investments, finances, investments, digital media comp, finances. 2 person internal, 4
external members. Do they own the stocks? They all have also international business
experiences.

7. II. CORPORATE
GOVERNANCE
B.Top Management
1. Nicholas Woodman, Chief Executive Officer and
Chairman, mad billionare
2. Anthony J. Bates, President and Director
3. Jack Lazar, Chief Financial Officer
4. Sharon Zezima, General Counsel and Secretary
5. Fabrice Barbier, Senior Vice President of Product
Development
6. Paul Crandell, Senior Vice President of Marketing
7. Jonathan Harris, Senior Vice President of Sales
8. Ronald LaValley, Senior Vice President of Operations
9. Zander Lurie, Senior Vice President of Media
10.Charles "CJ" Prober, Senior Vice President of Software
and Services
11.Colin Born, Vice President of Corporate Development
12.George "Jeff" Brown, Vice President of Communications
13.Jeff Ryan, Vice President of People
+ BA, MBA, skilled and experienced management team.
Have specific competentses on their field.
- Only one woman in management team
Comments: competences, international experience

8. III. EXTERNAL ENVIRONMENT
OPPORTUNITIES AND THREATS (SWOT):
A. Natural Environment
Headquarters is located in the San Francisco
Bay Area of California, an area susceptible to
earthquakes (T)
A major earthquake or other natural disaster,
fire, act of terrorism or other catastrophic event
in California or elsewhere that results in the
destruction or disruption of any of our critical
business operations or information technology
systems could severely affect our ability to
conduct normal business operations and, as a
result, our future operating results could be
harmed.
Our key manufacturing, supply and distribution
partners have global operations including in
China, Singapore and the Netherlands as well
as the United States. Political instability or
catastrophic events in any of those countries
could adversely affect our business in the
future, our financial condition and operating

9. III. EXTERNAL ENVIRONMENT:
B. Societal Environment
Political-legal forces
Economic forces
• Seasonality T
• international business uncertainties (revenue of outside US
is 43%)T
• The growth of the Industry (50% 2015/2016) O
Sociocultural forces
• Brand awareness among the customers O
• The growth of experience marketing, nomands and active
lifestyle O
Technological forces

10. III. EXTERNAL ENVIRONMENT:
C. Task Environment (Industry analysis)
• Government
• Local communities
• Suppliers
Reling only one video compression and image processing
semiconductors from one provider, Ambarella T
• Competitors
Highly competitive market T
the size and resources of some of our competitors may allow them to
compete more effectively T
• Customers
Consumers may be injured while engaging in activities that they self-
capture with our productsT
Failure to adequately protect customer data could harm our brand and
our reputation in the marketplace. T
Consumers want an easy way to self-capture engaging content O
Consumers want a quick, easy way to manage, edit and share their
content O
Consumers continue to replace traditional cameras with mobile devices O
• Creditors
We may not be able to secure additional financing on favorable terms, or
at all, to meet our future capital needsT
• Unions
• Special interest groups/trade
• Associations
Sports and actions camera business will be a 6.4 billion dollar industry with
40% – 50% growth between 2015 and 2016 globally.

11. EFAS

12. IV. INTERNAL ENVIRONMENT:
STRENGHTS AND WEAKNESSES
A. Corporate Structure
• 9 of 12th positions are
held since 2014 (top
management) S
• The structure is
functional

13. B. CORPORATE CULTURE
• Company carries the
attitude and energy of the
founder
• Golden handcaffs: free
breakfast, drinks, fruits,
GoPro cameras etc.
• Good salary, career
possibilities

14. C. CORPORATE
RESOURCES1. Marketing

15. C. MARKETING
Marketing the marketing budget for 2014 is $30,3 million (15% traditional marketing, 85% foc. on social media
and online adv)
The goal is to present the action camera as an easy, operable, portable device that can be carried and utilized
similar to a smart phone. The goal here is to gain emotional attachment between the product and consumer.
Channels:
1. Broadcast media: The Travel Channel and The Discovery Channel
2. Print Media: Conde Nast Traveler, National Geographic Magazine, and National, Geographic Traveler
Magazine
3. Billboards: will be place near or around airports for visualization and internalization.
4. Digital Kiosks will be installed in airports, hotels, shopping centers, and retail outlets that display the GoPro
brand as well as user content.
5. Social Media will be based on consumer and user content to promote trends in travel and leisure as well as
adventures and excursions. Contests will be conducts to attract more social media users to the GoPro website.
Detailed information will be published on Facebook, YouTube, Twitter, and other social media outlets.
Increasing media on social media is extremely important to gain views and likes.
Current partnerships with the Redbull brand and Relativity Media as well as sponsors celebrities and sporting events such
as the Sochi Winter Olympics. Content marketing efforts will be focused on disseminating consumer produced media on
social channels via the World Wide Web to promote branding and product appeal.

16. GoPro’s customers are so engaged
that anyone would be envious of
their work:
At least 6,000 GoPro-tagged
videos are uploaded to YouTube
every day.
“GoProing” is now a noun (and a
hashtag on Twitter) used to
describe the phenomenon.
With more than 3.2 million
subscribers, GoPro is one of the
leading brands on YouTube.
388 videos from the athletes
sponsored by GoPro have
garnered more than 50 million

17. C. CORPORATE
RESOURCES
2. Finance

18. C. CORPORATE
RESOURCES3. Research and Development
• 43% of staff working on R&D, research
• development expense $151.9 million
• Experience-driven approach to product development
• CEO leads product design
• In-house media production team that regularly travels
• Co-developing with partners, technologies to support the concepts
proposed by our product team.
• Content management platform is developed (GoPro Studio -> GoPro
Platform)
These core technologies include new Image Silicon Processors, new
image sensors and lenses, as well as the core algorithms that enable the
systems to operate and provide the performance and features.
The hardware engineering team also integrates these innovations and
firmware into our product designs and develops our capture devices,
including mounts and accessories. The software engineering team
develops and supports our applications to further enhance the
functionality of our products which facilitate the management, editing,

19. C. CORPORATE
RESOURCES4. Operations and Logistics
Product designe - California, outsource of our manufacturing to two contract
manufacturers - China.
A few key strategic parts are purchased from the supplier by us and then consigned to
our manufacturers, while the vast majority of parts are procured directly by our
contract manufacturers.
We have third-party fulfillment centers in Riverside and Fremont, California,
Singapore, Hong Kong, São Paulo, Brazil and Venray, Netherlands. These facilities
are either full service postponement centers (both light assembly and
warehouse/fulfillment) or warehouse/fulfillment only centers. In addition to these full
service and warehouse centers, we have postponement only centers which perform
in-region final packaging services in Brno, Czech Republic and Futian.
Cameras are typically air freighted while accessories and packaging are generally
regionally procured or shipped via ocean freighter from our manufacturers in China to
these fulfillment centers, where the products are packaged for retail sale. This
postponement strategy allows us to reduce shipping costs, reduce custom levies,

20. C. CORPORATE
RESOURCES
5. Human Resources
• 970 employees: 415 of whom were primarily engaged in research
and development, 322 of whom were primarily engaged in sales
and marketing, 67 of whom were primarily engaged in
manufacturing/logistics/fulfillment and 166 of whom were primarily
engaged in administrative and finance services.
85 of these employees were located outside the United States.
None of employees are currently covered by a collective bargaining
agreement, and we have experienced no work stoppages.

21. C. CORPORATE
RESOURCES
6. Information Technology
Go Pro uses open source software on its
products.
User platform and app is developed in-house

22. IFAS

23. TOWS STRATEEGIAD

24. TEOSTAMISE, HINNANGU JA KONROLLI PLAAN
GOPRO INC.

25. ANALYSIS OF STRATEGIC FACTORS (SFAS)