28 which is a weakness for gopro return on equity roe

510,814 / 4,525,133 = 11.28% which is a weakness for GoPro
 Return on Equity (ROE) is calculated by the formula ROE = Net Income / Average
Stockholder Equity. Solving for GoPro ROE = -(419,003)/ 446,945 = 93.74% with
Garmin’s ROE of 19.51% is a Weakness for GoPro
 Profit Margin is calculated by Profit Margin = Net Income / Sales. Solving for GoPro
Profit Margin = -(419,003) / 1,185481 = 35% with Garmin’s profit margin of 20.93% is a
Strength for GoPro
 Current ratio is calculated by the formula Current Ratio = Current Assets / Current
liabilities. Solving for GoPro Current Ratio = 922.64 Millions / 475.7 Million = 1.94
which is a Strength a few points below Garmin’s 2.48 current ratio
 Quick ratio is calculated by the formula: Quick Ratio = (Current assets – inventory) /
Current liabilities. Solving for GoPro Quick ratio = 1.13 is a weakness compared to
Garmin’s 1.92
TECHNIQUE ANALYSIS
IFE -- Key Internal Factors Evaluation

Strengths
Weight Rating Weighted Score
1. Leader in the Market of action cameras 0.10 3 0.30
2. Brand worldwide recognition by segmented market 0.20 3 0.60
3. Reduced operating expenses by $250 Million 0.25 2 0.50
Weaknesses
4. High Price for products 0.15 4 0.60
5. Videos upload process is difficult 0.20 2 0.40
6. Poor Battery life 0.10 3 0.30
TOTALS 1.0 2.7
EFE - Key External Factors Evaluation
Opportunities
Weight Rating Weighted Score
1. Increase International presence in emergent
developing economies
0.35 4 1.40
2. Increase the efficiency and simplicity to upload
videos in the internet and social media
0.12 3 0.36
3. Innovation with new technologies to keep
consumers preference and brand prestige
0.14 3 0.42
Threats
1. Uncertainty of new breakthroughs of technologies
0.10 2 0.20
2. Smart phones improvements in waterproof and
shockproof capabilities
0.15 2 0.30
3. Increase competition from major electronics
companies Sony, JVC, Garmin and Olympus
0.14 2 0.28
TOTALS 1.0 2.96
Competitive Profile Matrix (CPM)

Action cameras producers GoPro Garmin YI
Critical Success Factors Weight Rating WS Rating WS Rating WS
Product Quality 0.20 3 0.60 3 0.60 2 0.40
Market Share 0.12 4 0.48 1 0.12 1 0.12
Price Competitive 0.08 1 0.08 1 0.08 3 0.24
Innovation 0.07 3 0.21 2 0.14 2 0.14
Advertising 0.05 3 0.15 2 0.10 1 0.05
Brand Name 0.10 4 0.40 2 0.20 1 0.10
Financial Position 0.20 2 0.40 4 0.80 3 0.60
Sales Distribution 0.08 3 0.24 2 0.16 1 0.08
Market Expansion 0.10 2 0.20 3 0.30 2 0.20
Total 1.00 2.76 2.50 1.79
Grand Strategy Matrix. According to the Grand Strategy Matrix, GoPro is the worldwide
leader in the action camera market since its first entry into the extreme sports and adventure
enthusiast market. GoPro’s action camera products have a Strong Competitive Position, but with
a Slow Market Growth position in the Quadrant IV. GoPro organization will benefit by added
related and unrelated diversification, acquisition of new technologies to improve their
performance, automatic uploads of videos online, and taking advantage of new partnerships and
strategic alliances to take their products to the next level.