! Required information GoPro in 2017: Will Its Turnaround Strategy Restore Profitability? Before beginning this exercise, you will need to read the GoPro case. You will also need to review concepts in Chapter 3 and 4. The following questions will be covered in this exercise: 1. What are the strategically relevant factors in GoPro's macro-environment? What does a PESTEL analysis reveal about the action camera industry in 2017? Does the external environment of the drone industry present attractive opportunities for GoPro? 2. What is your assessment of GoPro's business model and competitive strategy? Does its approach to delivering customer value contribute to a sustainable competitive advantage? 3. What are GoPro's key resources and competitive capabilities? What is the competitive power of its most important competitive assets? 4. What is your assessment of GoPro's financial performance the past three years? (Use the financial ratios in the Appendix of the text as a guide in doing your financial analysis.) 5. Based on the preceding analysis and the first quarter 2017 statement of operations, what is your overall evaluation of GoPro's business situation as the company moved into 2017? Does the company strategy have the potential to provide the company's shareholders with an opportunity for above-average market returns in the next 3-5 years? 6. What strategic actions could Mr. Woodman take to reestablish GoPro's financial and market performance? What is your assessment of GoPro's business model and competitive strategy? Does its approach to delivering customer value contribute to a sustainable competitive advantage? Select "true" for those statements that are accurate and choose "false" for those that are not. a. GoPro's strategy did not contribute to a sustainable competitive advantage. It did not offer superior value, nor did it have a low cost advantage False b. GoPro's plan to grow the business internationally boosted the company's profitability. True c. GoPro's Entertainment company was profitable for most of 2017, the company developed, distributed, and promoted GoPro Entertainment Programming on its own partner platforms; and this move was part of their new business model. False d. GoPro has made attempts at improving its strategy; its weakness is in the implementation of the strategy where they have not been able to generate good company performance. (Click to select) e. While the company is number one in the action camera industry, its functional activities are problematic (cost of revenue and general administrative expenses are excessive, and the upward trend in costs continue to erode profitability), leading to a poor internal fit. (Click to select) f. While GoPro's strategy has evolved in response to competitive conditions, a weakness of their evolving strategy is how to make money and develop a competitive advantage. (Click to select) g. GoPro's strategy of remaining an action camera industry only and not entering into the software industry has also contributed to the company's market share decline; although entering into this market has proven difficult, it did provide an opportunity to gain back market share. (Click to select) h. GoPro enjoys a dominant competitive position. (Click to select)