28 which is a weakness for GoPro Return on Equity ROE is calculated by the

28 which is a weakness for gopro return on equity roe

This preview shows page 10 - 13 out of 24 pages.

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
Image of page 10
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)
Image of page 11
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.
Image of page 12
Image of page 13

You've reached the end of your free preview.

Want to read all 24 pages?

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture