Gopro's Monopolistic Market Analysis

GoPro Inc. has monopolistic market structure which means there are many competitions in the market. GoPro decides independently with their price based on its product demand, its market and production costs. GoPro Hero4 Black with tag price of $499 which is their most expensive product line up was released in September 2014 and their least inexpensive $129 entry level model to cater to a wide range of customer. GoPro sold 5.4 million of cameras with total sales revenue of $634 million in 2014. The product demand increased significantly in the international market making them one of the most best-selling products in the world with an average 1,000 units per hour during the holiday in the 2014. Monopolistic competitive company such as GoPro …show more content…
GoPro already develop their brand awareness and brand loyalty in the industry and dominated the social media by sharing their photos and uploading their videos on Facebook and created a network of people following them in Instagram and YouTube. The central feature of monopolistic competition is product differentiation - physical, marketing, human capital and distribution which creates choice, diversity and utility. With their physical differentiation, GoPro cameras versatility sets them apart from their competitors. There cameras are impossibly small, high performance, waterproof, shut proof, mountable anywhere; touch screen LCD and light weight cameras. For marketing differentiation, their logo stands with 4 boxes with different shades which symbolize different uses for motocross & biking, surf, underwater activity and snow sports. Their slogan “Be a Hero” represent being you and go out in the world and take video like a pro. GoPro marketing strategy is exceptional. GoPro sponsors highly renowned sportsmen, current events such as X-Games, partnerships with different company such as Redbull and promotional contest for family and sports enthusiasts alike. GoPro Inc. highest cost is employee salary, Research & Development (R&D) and Marketing. GoPro Inc. act as a team to attract, retain, motivate and develop highly qualified and best talent globally to continue to compete in the emerging markets. The distribution channels strategically analyze by GoPro team. For instance, Best Buy which is the world largest specialty electronic retailer have an exclusive display of GoPro Hero top of the line camera during the 2014 holiday season with large scale merchandising display to 500 stores for greater visibility and showing 40 inch