GoPro1 (2006) to GoPro12 (2023)         

I remember back in 2006, I was walking into a surf shot in Redondo Beach L.A, and seeing a small camera sitting on a shelf. "This is the next big thing," said the shop owner. I didn’t know how it performed, but I bought it on the spot. Yep- it was a love of first sight. I was among the first filmmakers who owned the HERO1 in my country. Unfortunately, during a shoot, the Mediterranean sea has taken my HERO1. So I bought (on the same day) another one, which was the HERO2. In 2007, I was shooting with the HERO2 attached to a remote car. The footage looked amazing. I loved that piece of imaging device. Since then, numerous models have developed, and the company which was the stock market hotshot, has faded. But why?  A very educating and intriguing video tries to answer that. 

        GoPro: Rise and fall. Graph by Modern MBA         

GoPro was a startup that by the measures of Silicon Valley and Wall Street, seemed destined to be the next big billion-dollar consumer brand. The cameras have taken the world by storm with its game-changing HEROs. The company was founded by Nick Woodman in 2002. He was motivated by a 2002 surfing trip to Australia in which he was hoping to capture high-quality action photos, but could not because amateur photographers could not get close enough or buy appropriate quality equipment at reasonable prices. The ‘GoPro’ name came about as Woodman and his surfing friends all aspired to become professional surfers as ‘Going Pro’ was the ultimate goal and the only way to be filmed on the water at that time. The camera range was branded ‘HERO’ as their aim was to capture close-up action shots that made the subject look like a hero. The first camera was sold in 2004. That was a film camera. Since then, almost every year a new model has been launched. In 2014, the company was listed on the NASDAQ stock exchange using the symbol GPRO.

        GoPro: The golden age. Graph by Modern MBA         

Yet fast forward to present-day in 2023, less than a decade later, and GoPro’s stock has dropped 95%. How could a company who had all the right ingredients from the measures of Silicon Valley and Wall Street, squander it all in such a short period of time? How could having a market-darling, category-leading product be worth so little? In this episode, Modern MBA covers the rise and fall of GoPro into 3 eras, their failures in strategy, and how the company’s collapse serves as a crucial lesson on the importance of knowing your market. The research divides the analysis into 3 parts: The Golden Age, The Era of Doom, and Dead Brand Walking. Watch this comprehensive research below:

Based on Modern MBA’s research, GoPro was making a lot of mistakes, which prevented it from a slick road to success. As explained, the company has released a new model every year, combined with the price reduction of previous models. The price reductions were significant. As a result, many consumers have been waiting for this price reduction, and thus skipping on purchasing new models since they were buying the older models. Moreover, Woodman has noticed that this price reduction caused losses while not expanding the market size: "Lowering price makes the product more accessible, but it doesn’t increase the market size" he said. Secondly, the company was not focused. As stated by the CEO, Woodman: "When you give the consumer too many choices, you confuse them, and they often end up buying nothing". If I will ask you to name all the GoPro HERO3 models, for instance, you will probably fail (answer: 5 models of HERO3). Furthermore, we all remember GoPro’s bad Karma (the quadcopter drone released in October 2016, and discontinued In January 2018). That was a knockdown. Finally, there’s the mighty DJI and advanced smartphone cameras. These days, smartphones are robust, weather and waterproof. Thus, a good smartphone can replace GoPro in some scenarios. Nevertheless, to me, GoPro will always be the weapon of choice when I surf, or when I need/want to capture extreme action with fun and not worry too much about the camera. Let us know your thoughts about this research. Do you think GoPro is under extinction?

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