GOPRO’S MACRO-ENVIRONMENT
The strategically relevant factors in GoPro’s macro-environment includes economic, social, technological, environmental, legal and political factors. Changes in the macro-environment can have an impact on the company’s competitive advantage and profitability. The economic factors that affect GoPro are inflation rate, savings rate, interest rate and foreign exchange. The competition will affect the competitive advantage of the firm. When conducting a PESTEL analysis for the economic factors, GoPro should consider the following: Labor costs and productivity, economic growth rate, inflation and interest rates. The social factors that affect GoPro are a direct reflection of the society that the company operates in, and encompasses culture, belief, attitudes and values that the majority of the population may hold as a community. The impact of social factors is not only important for the operational aspect of GoPro but also on the marketing aspect of the organization. A thorough understanding of the customers, their lifestyle, level of education and beliefs in a society, or segment of society, would help design both the products and marketing messages that would lead to a venture becoming a success. The technological factors can quickly destroy the price structure and competitive landscape of an industry in a very short amount of time. It is important to constantly and consistently innovate, for the sake of not only maximizing possible profits and becoming a market leader, but also to prevent obsolescence in the near future. There are multiple instances of innovative products completely redesigning the norm for an entire industry. The environmental factors are altering the product innovation. Extreme weather is adding to the cost of operations, as it has to invest in making its supply chain more flexible. The legal factors plays a critical role in any country. GoPro has to consider following legal factors before entering international market. There is data protection laws, business laws and employment laws to follow. The PEST analysis reveals that in 2017 the sales were up worldwide from just two years ago. With the numbers increasing in the camera industry for professional applications like sporting events, GoPro had major contracts with the National Hockey League and Fishing League Worldwide. The social factor played and big role in sales. The largest growth was in Asia Pacific region. The social networking sites was a major drive along with price polarization. Vendors began bundling their products to increase demand for cameras and accessories. By bundling, it saved consumers and eliminated the need to purchase additional equipment. The external environment of the drone industry has presented attractive opportunities for GoPro. New implementation in technology in this industry and the implementations done in the cameras have assisted in the company staying competitive in the market. Its success has been attributed...
