98%(48)47 out of 48 people found this document helpful
This preview shows page 10 - 13 out of 24 pages.
510,814 / 4,525,133 = 11.28% which is a weakness for GoProReturn 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 GoProProfit 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 aStrength for GoProCurrent 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 ratioQuick 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 1.92TECHNIQUE ANALYSISIFE -- Key Internal Factors Evaluation
StrengthsWeightRatingWeighted Score1. Leader in the Market of action cameras0.1030.302. Brand worldwide recognition by segmented market0.2030.603. Reduced operating expenses by $250 Million0.2520.50Weaknesses4. High Price for products0.1540.605. Videos upload process is difficult0.2020.406. Poor Battery life0.1030.30TOTALS1.02.7EFE - Key External Factors Evaluation OpportunitiesWeightRatingWeighted Score1. Increase International presence in emergent developing economies0.3541.402. Increase the efficiency and simplicity to upload videos in the internet and social media0.1230.363. Innovation with new technologies to keep consumers preference and brand prestige0.14 3 0.42Threats1. Uncertainty of new breakthroughs of technologies0.1020.20 2. Smart phones improvements in waterproof and shockproof capabilities0.1520.303. Increase competition from major electronics companies Sony, JVC, Garmin and Olympus0.142 0.28TOTALS1.02.96Competitive Profile Matrix (CPM)
Action cameras producersGoProGarminYICritical Success FactorsWeight Rating WS Rating WS Rating WSProduct Quality 0.203 0.60 3 0.60 2 0.40Market Share 0.124 0.48 1 0.12 1 0.12Price Competitive0.081 0.08 1 0.08 3 0.24Innovation 0.07 3 0.21 2 0.14 2 0.14Advertising 0.05 3 0.15 2 0.10 1 0.05Brand Name 0.104 0.40 2 0.20 1 0.10Financial Position 0.20 2 0.40 4 0.80 3 0.60Sales Distribution 0.08 3 0.24 2 0.16 1 0.08Market Expansion0.102 0.20 3 0.30 2 0.20Total1.002.76 2.50 1.79Grand 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.