These slides use concepts from my (Jeff Funk) course entitled Biz Models for Hi-Tech Products to analyze the business model for GoPro’s Wearable Camera. GoPro offers a wearable computer for extreme sports that is much more durable than other cameras. This camera is useful for board, kite, and wind surfers, skiers, scuba and sky divers, other extreme sports enthusiasts, drones, and the military. GoPro is building a community of users, online videos, and complementary products that is expanding GoPro’s methods of value capture. This presentation also discusses other aspects of the business model such as scope of activities, and method of strategic control.

1. Business Model ForJohn Allen Ray –A0094079UWenjingQi –A0119658RDouglas Gong Chun –A0034283LWang Hao–A0110225ATan GeokBin Andrew –A0110245Y

2. •Introduction•Customer Selection•Value Proposition•Value Capture•Scope of Activities•Strategic ControlOutline

3. The WEARABLE HD CAMERA that started a revolution.
Impossibly small
Impressively high performance
Incredibly versatile
It 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.
` Introduction
http://www.youtube.com/embed/1NLeuTNsQss?rel=0&start=03&end=25&autoplay=1

4. 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 ENDSIn the depth of the ocean– Capturing at 40m below sea level , extreme high pressure & low temperature
https://www.youtube.com/watch?v=wPQpdYcZ23k#t=0m50sGoProAll TerrainAll WeatherAll ExtremitiesHD CAMERA

5. Introduction
From 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
Performance
Effort
DIGITAL ERA
ANALOG ERA
WEARABLE DIGITAL ERA

6. Wearable Revolution
From Analog Camera to Wearable HD Wireless Camera Technology -GoPro

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

8. Customer SelectionGoProfor the young, active extreme sport enthusiastsWanting to Share their stunts and wild experiencesAdrenaline Junkies, AdventurersSky divers, Snow SportsScuba Divers, Surfers GoProis much more than these niche markets

9. Customer Selection
GoProembeddedtosoldiershelmets
Wirelesslive-streamingofvideosandimagestomilitarynetworkviasmartphoneshelptoaidsoldiersintheirtourofduty
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 trillionGoPro in the world Military Organizations

10. Customer SelectionGoProin 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.

11. 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

12. Customer SelectionProfessional Drones Market

13. Customer SelectionProfessional Drones Market

14. Customer SelectionCAR Manufacturers using GoPro Solutions
Car
Infotainment system installed with GoPro enabled solutions forowners 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

15. “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, GoProValue Proposition

16. Value PropositionExtremely rugged camera designShockproof, waterproofMountable anywhere GoPromounts (26 options) or compatible mountsSmall size and low weightEasy to wear/attach anywhereHigh resolution video capable4K videoWireless connectivity for control via app/remoteWaterproof RemoteEasily create and share contentFacebook, Twitter, YouTube, Instagram

17. Value PropositionExtremely rugged camera designShockproof, waterproofMountable anywhere GoPromounts (26 options) or compatible mountsSmall size and low weightEasy to wear/attach anywhereEasily create and share contentFacebook, Twitter, YouTube, Instagram
Adrenaline Junkie
Adventurer

18. Value PropositionExtremely rugged camera designShockproof, waterproofMountable anywhere GoPromounts (26 options) or compatible mountsSmall size and low weightEasy to wear/attach anywhereHigh resolution video capable4K videoEasily create and share contentFacebook, Twitter, YouTube, Instagram
Sky Diver
Snow Sports

19. Value PropositionExtremely rugged camera designShockproof, waterproofMountable anywhere GoPromounts (26 options) or compatible mountsSmall size and low weightEasy to wear/attach anywhereHigh resolution video capable4K videoWireless connectivity for control via app/remoteWaterproof Remote
Scuba Diver
Surfer

20. Value PropositionExtremely rugged camera designShockproof, waterproofMountable anywhere GoPromounts (26 options) or compatible mountsSmall size and low weightEasy to wear/attach anywhereWireless connectivity for control via app/remoteWaterproof Remote
Military

21. Value PropositionExtremely rugged camera designShockproof, waterproofMountable anywhere GoPromounts (26 options) or compatible mountsSmall size and low weightEasy to wear/attach anywhereHigh resolution video capable4K video
Marine ROV

22. Value PropositionExtremely rugged camera designShockproof, waterproofMountable anywhere GoPromounts (26 options) or compatible mountsSmall size and low weightEasy to wear/attach anywhereHigh resolution video capable4K videoWireless connectivity for control via app/remoteWaterproof Remote
Drone

23. Value PropositionExtremely rugged camera designShockproof, waterproofMountable anywhere GoPromounts (26 options) or compatible mountsSmall size and low weightEasy to wear/attach anywhereFirst Category

24. Value PropositionHigh resolution video capable4K videoSecond Category

25. Value PropositionWireless connectivity for control via app/remoteWaterproof RemoteEasily create and share contentFacebook, Twitter, YouTube, InstagramThird Category

26. Value Proposition

27. Value Proposition

28. Value Proposition

29. Value Proposition
http://www.slideshare.net/nicolasleonard986/gopro-brand-audit
PERCEPTUA L M A PPING
Traditional Leisure
High Quality
Low Quality
Actio
n
High Quality
Low Quality
Tradition
al

30. Value CaptureExisting Revenue StreamTransformationVSN: Create Value from Brands and AdvertisersVSN: Create Value from Members

31. Markup Revenue Model
Sale of action cameras
Sale of variety of mounts and accessories
Mounts and Accessories
Cameras
Cameras
Mounts
AccessoriesEXISTING REVENUE STREAM

32. 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 interactions
GoPro
Expose to target consumers
Sell Analytics and
Digital Content
Community
Brands
Software and App
GoProchannel

33. VSN: Create Value from Brands and AdvertisersMarketing solutionsAdvertising & contentTargeted audienceInfluencer identification Influencer contractingSponsorship, PromotionLead GenerationPlatform SolutionsCo-branded platform functionsAPIs and embeddable widgets3rdParty shoppingResearch/analytics PackagesCustomized reports for brands and vendors

34. VSN: Create Value from MembersMembershipEnable sharing and interactionsMake friends onlineEngage in adventures offlinePremium SubscriptionAccess to premium features, APIsad-freePremium offline services

35. Scope of ActivitiesR & DManufacturingDistribution ChannelMarketing Strategies Vertical (Dis)integration

36. R & D
100
3
200
0
50
100
150
200
250
300
350
Before 2011
2011 onwards
# of Specialists
Hardware
Software2/3 Hardware Design Look Functionalities1/3 SoftwareContent Management& Platform-based software: GoProStudio GoproApp GoProNetworks
Out of Total 800 employees

37. R & D
Total revenue 2014
$244.6 million

38. ManufacturingAmbarella, Inc. SoCTechnology (System-on-a-chip) Integrating Capabilities onto one chip•HD video-processing•Image-processing•Audio-processingTo capture high-quality content at extremely power-efficient levelChiconyElectronics Co., Ltd. Buys Ambarella’schipAssemble into GoPro’scamera
“go to”

39. Distribution Channel
GoProWebsite
> 100 Countries Worldwide
Specialty Retailers
(Surf, Bike, Dive)
Sporting-goods
Retailers
(Authority)
CE Retailers
(Best Buy, Target, Challenger)
CUSTOMERS
Authorized
Resellers
/Dealers

40. Marketing Strategies
Current
•Good –Better –Best
•Mountings, Gadgets & Gears
•GoProChannel & Community
Future
Media Company

41. Vertical (Dis)integrationIn HouseOutsourcing
R&D
✓
Manufacturing
Ambarella, Chicony
Marketing
GoProChannel
Youtube, Red Bull (Content providers)
Sales & Distribution
Online Website
Worldwide Retailers & Resellers
After Sales Support
✓
Worldwide Retailers & Resellers

42. R&D
Design
Merchandising
Subcontracting
Manufacturing
Logistic
Marketing
Licensing
BrandValue Chain Value Added GoProSmile Curve

43. Strategic ControlsBest in class product designEmotional connection with GoProownersBecome content provider

44. Best DesignChoice of configurationsCompatible with IOS, Android and Windowslow weight and long battery life

45. Emotional ConnectionPartner with BMW, Red Bull to build brand image Mutual endorsement and expand customer baseExpand GoPro’sinstall base and user communityFeatured GoProathletes to use the camera

46. User Generated ContentUser-generated content is self-evangelizing and saves GoPromarketing cost. Deeper connection with audience as opposed to PPC. First-person videoTechnology advance Enpowersusers to create captivating content as compelling as profession ads.

47. IP management of UGCGoProdoes not own the content (copyright) GoProobtains licensefrom authorsGoProbuild an enormous media database to exploit on YouTube and GoProwebsite
YoutubeChannel
GoProWebsite

48. Encourage CreationFulfilling fantasy: Be a hero and be part of the GoProStory, inspired by GoProathletes, exciting videos produced by power users. (GoProprogramming) Mounts, GoProStudio, GoProapps (vertical integration) Openness and compatibility with other social mediaReward authors with money, status and privilegesAdopt Creative Commons with power users

49. ConclusionRobust product design and quality are the cornerstone of GoPro’ssuccessEffective marketing through UGC accelerates GoPro’ssuccessBuilding up ecosystem demonstrates future potential