STHM 1113 Lecture Notes - Lecture 37: Nick Woodman, Gopro, Disposable And Discretionary Income
7 May 2018
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• Fad or Viable Trend?
o All products have ‘life cycle”
▪ Some are able to achieve a plateau and create a strong base
o Know your source of information
o What are the competing and similar product innovations?
o Think about your potential market segment
o Does it require major changes in behavior?
• Product/Activity Life Cycle Phases
o Fads = raze
▪ Lot of attention, rapid growth, fades into obscurity
▪ Examples????
o Viable, but in decline = ESPN
o Boom period = eSports
o Seasonal = Skiing/Snowboarding; Beach activities
o Go Pro
▪ Started by a surf bum – Nick Woodman
▪ In 2013, GoPro sold 2.3 million Hero 3+ and other products
• Grossed $521 million
▪ In 2012, company was valued at $2.25 billion
▪ Over the past three years, stock has plummeted 70% - trading at $8-$9
from a high of $86 per share
▪ New competition from smart phones and other companies
▪ Lack of simplistic editing – purchased two companies to help with this
▪ Products did not catch on & became a novelty
▪ Can they return to profitability? What/who is their market and plan?
▪ Reduce inventory
• Means big discounts on products, particularly older product like
Hero5 Black cameras
▪ Generate demand for full-priced products
▪ Shift focus away from wearables
▪ Future products?
• Drones
• Virtual Reality
• Trend versus Fad
o Ask…ho muh ehaior change does this require?
▪ Remember – past behavior most accurate predictor of future behavior.
▪ Too easy, too challenging
o Reality check – separate enthusiasm for something and analyze the numbers
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