Introduction two types of competitive advantages a

Introduction

 

GoPro
was introduced by Nick Woodman in 2002 with the intension of capturing life
moments of enthusiasm in surfing which has now expanded internationally over
100 countries used by millions in capturing real-time moments and sharing them.

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Vision – We dream. We have passionate
ideas about what’s possible in this world. Our passions lead us to create
experiences and realities that expand our world and inspire those around us.
Nicholas Woodman – GoPro CEO and Founder

Mission – Enabling you to share your
life through incredible photos and videos by capturing, creating and sharing
the world’s most GoPro perspective with versatile cameras.

Task 1 – Differentiation strategy adopted by GoPro
in becoming a global phenomenon in the consumer electronic category

 

Differentiation Strategy is the way a product is
differentiated in the eyes of the customers. It involves the approaches a
company aims to develop its’ product in a unique way to gain sustainable competitive
advantage among other competitors. This will involve structure, features,
durability, and user friendliness, functionality and etc.

Porter’s generic theory defines how a firm could gain
competitive advantage through the chosen market. According to Porter’s generic
strategies there are two types of competitive advantages a firm can possess
which is Low cost base and differentiation. (Hill, July 1988) GoPro adopts differentiation strategy
which is aimed at wide market to develop unique features of products that is
known throughout its industry as unique.

When considering the nature of differentiation, GoPro can be
differentiated as tangible and intangible. Tangible characteristics such as small
in size (easy to carry), Water proof, complimentary services such as software
to work with, Bluetooth, video quality, GPS and quality, 3D feature and etc are
provided. Intangible characteristics such as extreme lifestyle, sense of belonging
to adventurous and professional community. 

GoPro positions the product with uniqueness and is sold for
premium prices. The influence that differentiation has on demand depends on the
ability of the company to differentiate the product, the competitive nature of
the product market environment and loyalty of customer to the products of other
competitive companies. (Hill, July 1988)

According to GoPro, their motive is to help consumers
capture real-time life experiences and share the experience. (GoPro, 2017) The reason why the
GoPro is becoming a global phenomenon in the consumer electronic category is
because it is differentiated in a way that the other electronic companies
cannot compete with. GoPro provides the necessities to provide consumers with
many features that is given through cameras and phones to overall make the
experience better. For example, GoPro Hero5 has features such as below.

 

 

 

 

 

 

 

 

 

Even though the product
is sold at a premium price, the GoPro provides the uniqueness that other
electronics aren’t providing through product augmentation, Product perception
and product performance.

 

 

 

 

Differentiation isn’t restricted in providing customers what
they expect. Consumer expectations could be increased by adding features that
they haven’t thought about and this is product augmentation. GoPro provides
technical support, after sales services such as warranty, money back guarantee,
24 hour chat supporters and etc. GoPro also differentiates through product
perception through its product benefits given in figure 2, and with the
aspiration of capturing real-time life experiences and sharing. GoPro is well
known for its quality, performance (GoPro, 2017),
durability where the GoPro provides money back guarantee without
hesitation.  GoPro further improves its’
product performance. For example – Launching a GoPro Channel on Xbox Live which
the consumer can watch the latest GoPro videos, and experience life. (Microsoft, 2017)

 Differentiation is a
sustainable strategy in earning profits from GoPro, due to the uniqueness of
the product it results brand loyal consumers. This will also be an entry
barrier to new firms because in order to compete with GoPro, they will have to
establish distinctive features that can differentiate the product in comparison
to GoPro. According to Ritika Tanwar (Tanwar, 2013)  it suggests that a differentiation strategy
is expected gain higher profits than the low cost strategy because
differentiation creates better barriers in entering the market. This is
obtaining Profit through quality. Differentiation mostly involves in
maintaining market share. Considering the GoPro, differentiation strategy
serves better in becoming a recognized brand in the global market.

 

Task 2 – Marketing mix adopted by GoPro in
establishing the brand

 

Marketing mix is related putting the right product at the
right time, and at the right price. According to the marketing concept,
initially the target market is identified and the marketing is directed to the
selected market chosen. Then the consumer needs are taken to consideration
which then coordinating the effort to meet consumer requirements. In order to
do this, the firm has to exactly know the marketing plan. STP which is
Segmenting, Targeting and Positioning is three step process used to build a
targeted marketing plan. In Segmenting, the list of potential markets is listed.
Their specifications are analyzed and described. For example – Families to use
on daily activity recordings, Travelers constantly changing locations and etc. Under
Targeting the above segments are evaluated and considering above GoPro would
fit into the segment of travelers. Finally through positioning the best
positioning is chosen for the selected segment. If the product appeals to more
than the target group, it means the strategy and method is wrong.

(Lynn, 2011)

 

 

 

 

Figure 3- STP

Marketing mix is the set of strategic marketing tools
involving  that combined together to
facilitate the given target market.  The
successful combination of marketing mix creates more value to the products with
a lower cost to provide to consumers. Thus, creates competitive advantage among
other companies, match with consumer needs causing customer satisfaction, brand
loyalty which will lead to higher long-term profits and increase of market
shares, will increase brand reputation and staff motivation as well.