True/False

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 are GoPro's key resources and competitive capabilities? What is the competitive power of its most important competitive assets? Select "true" for those statements that are accurate and choose "false" for those that are not a. A tangible asset for GoPro are its technological resources that gave the company the ability to develop a stream of constantly improved action cameras, propelling them to the number one market position in the industry. (Click to select) b. Financial resources were a weak tangible resource for GoPro with working capital in 2016 of $157,074,000, down from $538,066,000 in 2015. (Click to select) c. An intangible key resource for GoPro is their strong brand name due largely to their products, sales channels, and huge YouTube Library of GoPro content. (Click to select) d. GoPro's partnership with the energy drink Monster has also become a key resource for both GoPro and Monster. (Click to select) e. GoPro Channel on PlayStation Network is also an intangible asset. This development has allowed PlayStation owners to stream GoPro content on-demand and browse GoPro cameras and accessories. (Click to select) f. Relationships with influential endorsers such as athletes, entertainers, brands, and celebrities who use GoPro products to create and share content with consumers and fans is also an important and strong intangible resource for GoPro. (Click to select) g. Advertising opportunities for GoPro can lead to a strong intangible asset by increasing consumer knowledge and awareness of the capabilities of this camera. (Click to select) h. GoPro has a strong brand name passing the first of the VRIN tests of being Valuable; the well-developed promotion and distribution network, the many life-style partners, and enormous libraries keep the brand name visible. (Click to select) i. GoPro is a nonsubstitutable product. Its camera technology is different from that of its competitors. (Click to select) j. GoPro's brand name fails the VRIN test as being Rare; GoPro's rivals also have very strong brand names. (Click to select) k. GoPro's human assets pass the VRIN test of being Valuable; GoPro's human assets are strong and have propelled the company to the number one position. (Click to select) 1. GoPro's human assets pass the test of being Inimitable; the company's human assets are loyal, well-trained, and highly-skilled. (Click to select) 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 are GoPro's key resources and competitive capabilities? What is the competitive power of its most important competitive assets? Select "true" for those statements that are accurate and choose "false" for those that are not a. A tangible asset for GoPro are its technological resources that gave the company the ability to develop a stream of constantly improved action cameras, propelling them to the number one market position in the industry. (Click to select) b. Financial resources were a weak tangible resource for GoPro with working capital in 2016 of $157,074,000, down from $538,066,000 in 2015. (Click to select) c. An intangible key resource for GoPro is their strong brand name due largely to their products, sales channels, and huge YouTube Library of GoPro content. (Click to select) d. GoPro's partnership with the energy drink Monster has also become a key resource for both GoPro and Monster. (Click to select) e. GoPro Channel on PlayStation Network is also an intangible asset. This development has allowed PlayStation owners to stream GoPro content on-demand and browse GoPro cameras and accessories. (Click to select) f. Relationships with influential endorsers such as athletes, entertainers, brands, and celebrities who use GoPro products to create and share content with consumers and fans is also an important and strong intangible resource for GoPro. (Click to select) g. Advertising opportunities for GoPro can lead to a strong intangible asset by increasing consumer knowledge and awareness of the capabilities of this camera. (Click to select) h. GoPro has a strong brand name passing the first of the VRIN tests of being Valuable; the well-developed promotion and distribution network, the many life-style partners, and enormous libraries keep the brand name visible. (Click to select) i. GoPro is a nonsubstitutable product. Its camera technology is different from that of its competitors. (Click to select) j. GoPro's brand name fails the VRIN test as being Rare; GoPro's rivals also have very strong brand names. (Click to select) k. GoPro's human assets pass the VRIN test of being Valuable; GoPro's human assets are strong and have propelled the company to the number one position. (Click to select) 1. GoPro's human assets pass the test of being Inimitable; the company's human assets are loyal, well-trained, and highly-skilled. (Click to select)