In 2002, Nick Woodman arrived in Australia, eager to surf the waves of the Pacific. He thought it would be wonderful if he could capture some stunning footage of himself engaged in the adrenaline-fueled sport, but he could not find any reasonably priced or quality equipment. He wanted to replicate the skill of professionals with an easy-to-handle and versatile camera. He returned to the United States, and after collecting initial capital from a variety of sources--including his parents and selling belts of beads and shells--he founded GoPro, Inc.
The performance of the company has been robust. It has branched from camera hardware into media software as well, providing video and photographic applications. Its action cameras--specifically the HERO line and its successive models--remain its most valuable products. They have become staples at extreme action and sports events worldwide. Two years ago, the company decided to go public. A big reason was its ambition to expand into a full-fledged media company. The additional revenue from the content created through its cameras would bolster that ambitious expansion. On June 25 of 2014, at $24 per share, GoPro sold over 17.8 million shares to initial investors. Its value then was $2.95 billion. Its stock price now has dropped to $15.41.
Overall, GoPro is doing well, but the competition has risen alongside the young company--and it shows in the financial reports. Sales of its action cameras have slightly slumped, and the company's narrow focus has no doubt contributed to the slouch. As such, the company has revved up its desire to release its new aerial drone called KARMA (whose launch has been pushed back to later this year). It has released no new products since the GoPro Hero4 last summer but also plans to unveil a special camera called OMNI. It is able to take a 360 degree pictures, compatible with virtual reality headsets. Though expensive, the demo footage is impressive and will appeal to hardcore, loyal consumers.
While OMNI looks like a promising piece of engineering, it is doubtful that there is enough interest in the product to drastically improve the company's prospects. Samsung has priced their own 360 degree camera quite lower, giving a possibly better alternative for curious customers. The average customer for GoPro may actually require something more spectacular within the company's best and oldest product: its small, attachable, lightweight action cameras. As such, the one-trick-pony image that the company has been trying to buck may end up proving more true than it admits. It remains to be seen what exactly GoPro will innovate in this new field.
GoPro's cameras have, in an age of YouTube and inundated videos, connected people through a unique, strangely personal way. The manner of its filming shortens distances between the recorder and viewer--this has changed its marketing in a dramatic way. Bombastic and even death-defying footage taken by its consumers is used to further amplify the adventurous feel of the product. Whether the recordings are of mountain-biking or somersaulting on a precarious trampoline, the effect is entertaining. It is also energetic and invigorating--qualities inherent to the camera's design. These qualities as essential to the GoPro brand, and need to be retained as the company branches into different and exciting markets.
