one question for GoPro case.

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GoPro Case Analysis
After GoPro launched its first cameras in 2004, its sales volumes increased tremendously superseding those of other companies such as Sony, Nikon, and Garmin. Evidently, the company had secured its leadership position in the market by the year 2012 with a market coverage of 26 percent (Tarr 6). Although GoPro’s macro-environment is favorable, the company need to strategize its moves in the market due to increased competition and technological shifts in photography that is threatening its presence and performance in the market.
PESTLE analysisPolitical
Political events such as violence, corruption, bureaucracy, and military activities can affect an industry and its player both in long-term and short-term basis since they determine the level of risk in a particular market. For example, in countries with military activities, the use of cameras other products is likely to decline due to reduced tourism that creates demand for photography.
Economic
Economic factors include inflation, foreign exchange, and depression can influence the demand and rate of investment in industry. Income level can have impacts to GoPro’s macro-environment since based on the level of disposable income or expenditures. For example, the fall in China’s economy 2015 caused many investors to pull back as GoPro’s stock fell by 25 percent leading to an 8 percent market decline (Guillen 1). A similar case has been captured in the past in the US especially after the 2009 depression.

Social
Social factors are mostly dependent on the culture, religious beliefs and attitudes, literacy level, and leisure activities that a population deems appropriate. For example, a country with high literacy level can record high demand and supply dynamics for photographic equipment than those with the less educated people. Also, modern social networking activities have increased the need for the GoPro’s Action Camera and Hero series products.
Technology
Technology has played the enormous role in the transformation in the photography industry. One such factor is the rise of smartphones that have come with advanced camera capabilities thus replacing the cameras. Evidently, the increase of smartphones rendered Flip camera obsolete (Lapowsky 3), ideally demonstrating the reason investors and developers need to consider technological issues when venturing into a market.
Environmental
Environmental factors include the interests in environmental and ecological integrity. In photography sector, the need to preserve endangered species have improved the use of cameras and other video devices. Other include the set environmental standards and taxes, both that seek to promote conservationism can have positive impacts on a company like GoPro.
Legal
Legal are factors involves the regulations in the industry such as licensing, fines, and agreements. One way they affect the industry is through consumption of licensed images and videos that boost industry’s revenue. In 2015, Heine (9) estimated that GoPro’s licensing of video ads was to bring about $7.7 to the industry. Also, other legal issues likely to affect an enterprise is the laws governing the trade and use of photography equipment (Peterson, 13).
Action Camera’s performance in 2016
Concussively, it is logical to say that the macro-environment in photography industry is favorable for the growth of Action Camera. Action Camera is easy to use and mostly used in events such as sport, recreational activities, and adventure. Also, it is usable in both extreme weathers and underwater excursion, and mountable on a bike, cars, boats, and helmets thus capable of capturing right-in-action moments. Notably, only the technological advancements seem to threaten its performance in the market due to increased use of smartphones with almost similar specifications and functions. Nonetheless, Action Camera market shares have improved with a projected growth of at least 15 percent between 2016 and 2020 (Maida 1; McLaughlin 4). Factors responsible include increased use of social networking sites including the Facebook, Instagram, and Twitter. Another factor is the dropping prices due to the entry of new vendors including Veho, Olympus, and Garmin.
GoPro’s opportunity in the drone industry
Finally, the external environment does not provide opportunities for GoPro’s success in the drone industry. Evidently, the company announced its exit from the drone business early 2018. The key reason for the exit is the unfavorable regulations especially in Europe and America regarding the aerial market. Another factor as high competition in the aerial market. Consequently, GoPro’s revenue was projected to reduce to about $340 million. At the same time, the company expected to cut about 20 percent of its employees following this exit.
Conclusion
In brief, GoPro is favored by external factors of the business. However, it must improve its strategies to remain in business due to emerging threats such as technological changes, competition, and unfavorable regulations.
Works Cited
Guillen, Mark J. “Reasons for the fall of GoPro Inc. Stock By 8% – Markjguillen.” Seeking Alpha, 2015, seekingalpha.com/instablog/35234145-markjguillen/4342596-reasons-fall-gopro-inc-stock-8-percent.
Heine, Christopher. “Gopro Marketing Gets Its Close-Up.” Adweek, Vol. 56, No. 26, 20 July 2015, Pp. 9-10. 
Lapowsky, Issie. “Why GoPro’s Success Isn’t Really About the Cameras.” Wired, Conde Nast, 3 June 2017, www.wired.com/2014/06/gopro/.
Maida, Jesse. “Global Action Camera Market to Grow at a CAGR of Almost 15% Through 2021- Forecasts by Technavio.” Global Action Camera Market to Grow at a CAGR of Almost 15% Through 2021- Forecasts by Technavio | Business Wire, 22 May 2017, www.businesswire.com/news/home/20170522005660/en/Global-Action-Camera-Market-Grow-CAGR-15
McLaughlin, Michael. “GB Action Cameras Market Growth Stabilizes in 2016.” GfK Global, 3 Apr. 2018, www.gfk.com/insights/news/gb-action-cameras-market-growth-stabilises-in-2016
Peterson, Tim. “GoPro Boosts Sales via Snap and Share.” Adweek, vol. 54, no. 4, 28 Jan. 2013, pp. 12-13. 
Tarr, Greg. “GoPro Takes Camcorder Market by Storm.” TWICE: This Week in Consumer Electronics, vol. 28, no. 11, 20 May 2013, pp. 6-108.