GoPro’s Wearable Camera

Business Model For

John Allen Ray – A0094079U

Wenjing Qi – A0119658R

Douglas Gong Chun – A0034283L

Wang Hao – A0110225A

Tan Geok Bin Andrew – A0110245Y

• Introduction

• Customer Selection

• Value Proposition

• Value Capture

• Scope of Activities

• Strategic Control

Outline

The WEARABLE HD CAMERA that started a revolution.Impossibly smallImpressively high performanceIncredibly versatileIt all adds up to a camera that makes it easy for anyone, anywhere, to capture stunning photos and video of their life’s most meaningful experiences.

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Introduction

http://www.youtube.com/embed/1NLeuTNsQss?rel=0&start=03&end=25&autoplay=1

https://www.youtube.com/watch?v=1NLeuTNsQss

https://www.youtube.com/watch?v=1NLeuTNsQss

http://www.youtube.com/embed/1NLeuTNsQss?rel=0&start=03&end=25&autoplay=1

The Sky is not the limit –near edge earth stratosphere*, extreme temperature, low pressure, sun radiation exposure, speed & friction

GOPRO – EXTREME HD PHOTO-VIDEO

AT WORLD’S ENDS

In the depth of the ocean–Capturing at 40m below sea level , extreme high pressure & low temperature https://www.youtube.com/watch?v=wPQpdYcZ23k#t=0m50s

GoProAll TerrainAll WeatherAll ExtremitiesHD CAMERA

https://www.youtube.com/watch?v=wPQpdYcZ23k#t=0m50s

http://www.youtube.com/embed/QrxPuk0JefA?rel=0&start=10&end=60&autoplay=1

http://www.youtube.com/embed/QrxPuk0JefA?rel=0&start=10&end=60&autoplay=1

IntroductionFrom Analog Camera to Wearable HD Wireless Camera Technology - GoPro

Analog camera & video cam

Digital camera Digital video cam Wearable HD wireless Cam

cum video cam - GoPro

Mobile &Smart phones

Pe

rfo

rman

ce

Effort

DIGITAL ERA

ANALOG ERA

WEARABLE DIGITAL ERA

Wearable RevolutionFrom Analog Camera to Wearable HD Wireless Camera Technology - GoPro

ACTION CAMERA MARKET PROJECTIONWearable action camera forecast 37% cagr, demand rising as a result of growing extreme sports market

Customer Selection

GoPro for the young, active extreme sport enthusiasts

Wanting to Share their stunts and wild experiences

Adrenaline Junkies, Adventurers

Sky divers, Snow Sports

Scuba Divers, Surfers

GoPro is much more than these

niche markets

Customer Selection

GoPro embedded to soldiers helmets

Wireless live- streaming of videos andimages to military network viasmartphones help to aid soldiers in theirtour of duty

DARPA - Defense Advanced Research Projects Agency to use wireless cameras embedded on US soldiers helmets that stream live to the network via smartphones

Global defense annual spending : USS$1.7 trillion

GoPro in the world Military Organizations

Customer SelectionGoPro in marine ROV manufacturers

Undersea ROV for marine biology research,

Undersea search and rescue

Offshore Oilfield exploration & subsea maintenance for marine oil and gas industry

Seabed surveys for marine geologists, seismotologist

The World ROV Market Report 2010-2014 identifies 2009 expenditure on ROV on the global work-class market at $1.7 billion. The report forecasts rapid expenditure from a 2009 low, growing to $3.2 billion by 2014.

Customer SelectionConsumer, professional & military drones market

Consumer drones for social photography, videography & hobbyist thrills

Professional drones for search and rescue, disaster area reconnaissance, aerial mappings, movie making, scientific research etc

Military drones for aerial reconnaissance & silent attack behind enemy lines

Customer SelectionProfessional Drones Market

Customer SelectionProfessional Drones Market

Customer SelectionCAR Manufacturers using GoPro Solutions

CarInfotainment system installed with GoPro enabled solutions for owners to remotely operate GoPro Hero Cameras

Total In-Car Infotainment (ICI) Market is expected to touch $14.4 billion by 2016 at a CAGR of 12.1% from 2011 to 2016

“The value proposition that we're trying to deliver to our customers is to remove all of the pain points in capturing and sharing immersive and engaging personal content that other people actually want to watch.”

– Nick Woodman, CEO & Founder, GoPro

Value Proposition

Value PropositionExtremely rugged camera design

Shockproof, waterproof

Mountable anywhere GoPro mounts (26 options) or compatible mounts

Small size and low weightEasy to wear/attach anywhere

High resolution video capable4K video

Wireless connectivity for control via app/remote

Waterproof Remote

Easily create and share contentFacebook, Twitter, YouTube, Instagram






Adrenaline Junkie

Adventurer







Sky Diver

Snow Sports







Waterproof Remote

Scuba Diver

Surfer






Waterproof Remote

Military






Marine ROV







Waterproof Remote

Drone





First Category

Value Proposition


Second Category

Value Proposition


Waterproof Remote


Third Category

Value Proposition

Value Proposition

Value Proposition

Value Proposition

http://www.slideshare.net/nicolasleonard986/gopro-brand-audit

PERCEPTUA L M A PPING

Leisure Traditional

High Quality

Low Quality

Actio

n

High Quality

Low Quality

Tradition

al

Value Capture

Existing Revenue Stream

Transformation

VSN: Create Value from Brands and Advertisers

VSN: Create Value from Members

Markup Revenue Model

Sale of action cameras

Sale of variety of mounts and accessories

Mounts and Accessories

Cameras

Cameras Mounts Accessories

EXISTING REVENUE STREAM

TRANSFORMATION—PHYSICAL GOODS TO DIGITAL MEDIA

Advertising

Enable end users to edit and share videos through GOPRO

Channel on YouTube, Virgin America and Xbox

Live

Fostering a community that has large potential

advertising value

Vertical Social Networking

Customer

Customer

Online and

offline interacti

ons GoPro

Expose to target consumers

Sell Analytics and Digital Content

Community

Brands

Software and App GoPro channel

VSN: Create Value from Brands and Advertisers

Marketing solutions

Advertising & content

Targeted audience

Influencer identification

Influencer contracting

Sponsorship, Promotion

Lead Generation

Platform Solutions

Co-branded platform functions

APIs and embeddable widgets

3rd Party shopping

Research/analytics Packages

Customized reports for brands and vendors

VSN: Create Value from Members

Membership

Enable sharing and interactions

Make friends online

Engage in adventures offline

Premium Subscription

Access to premium features, APIs

ad-free

Premium offline services

Scope of Activities

R & D

Manufacturing

Distribution Channel

Marketing Strategies

Vertical (Dis)integration

R & D

1003

200

0

50

100

150

200

250

300

350

Before 2011 2011 onwards

# o

f S

pe

cial

ists

Hardware

Software

2/3 Hardware Design Look Functionalities

1/3 SoftwareContent Management & Platform-based software: GoPro Studio Gopro App GoPro Networks

Out of Total 800 employees

R & DTotal revenue 2014

$244.6 million

Manufacturing

Ambarella, Inc. SoC Technology (System-on-a-chip)Integrating Capabilities onto one chip• HD video-processing• Image-processing• Audio-processingTo capture high-quality content at extremely power-efficient level Chicony Electronics Co., Ltd.

Buys Ambarella’s chipAssemble into GoPro’s camera

“go to”

Distribution ChannelGoPro

Website

> 100 Countries

Worldwide

Specialty Retailers

(Surf, Bike, Dive)

Sporting-goodsRetailers

(Authority)

CE Retailers(Best Buy, Target,

Challenger)

C

U

S

T

O

M

E

R

S

Authorized

Resellers

/Dealers

Marketing Strategies

Current

• Good – Better – Best• Mountings, Gadgets & Gears

• GoPro Channel & Community

Future

Media Company

Vertical (Dis)integration

In House Outsourcing

R&D ✓

Manufacturing Ambarella, Chicony

Marketing GoPro ChannelYoutube, Red Bull

(Content providers)

Sales & Distribution Online WebsiteWorldwide Retailers &

Resellers

After Sales Support ✓Worldwide Retailers &

Resellers

R&D

Design

Merchandising

Subcontracting

Manufacturing

Logistic

Marketing

Licensing

Brand

Value Chain

Val

ue

A

dd

ed

GoPro Smile Curve

Strategic Controls

Best in class product design

Emotional connection with GoPro owners

Become content provider

Best Design

Choice of configurations

Compatible with IOS, Android and Windows

low weight and long battery life

Emotional Connection

Partner with BMW, Red Bull to build brand image

Mutual endorsement and expand customer base

Expand GoPro’s install base and user community

Featured GoPro athletes to use the camera

User Generated Content

User-generated content is self-evangelizing and saves GoPro marketing cost.

Deeper connection with audience as opposed to PPC. First-person video

Technology advance Enpowers users to create captivating content as compelling as profession ads.

IP management of UGC

GoPro does not own the content (copyright)

GoPro obtains license from authors

GoPro build an enormous media database to exploit on YouTube and GoPro website

Youtube Channel

GoPro Website

Encourage Creation

Fulfilling fantasy: Be a hero and be part of the GoProStory, inspired by GoPro athletes, exciting videos produced by power users. (GoPro programming)

Mounts, GoPro Studio, GoPro apps (vertical integration)

Openness and compatibility with other social media

Reward authors with money, status and privileges

Adopt Creative Commons with power users

Conclusion

Robust product design and quality are the cornerstone of GoPro’s success

Effective marketing through UGC accelerates GoPro’ssuccess

Building up ecosystem demonstrates future potential