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Go-Pro Goes to New Zealand

Go-Pro is a company that is located in the United States. It has been a significant player in the surfing, snowboarding, white-water rafting, and active wear apparel industry for the last few years. The Go-Pro company is composed of surfers and designers that are making quality products for different sports and activities. The company offers its clients a choice of either purchasing or renting different sport products and devices. Today, the company aims at penetrating New Zealand market, and establishing itself as a popular to wear logo and apparel industry in the country. The Go-Pro company has surfing, snowboarding, and skating products lines that the company aims to make available on the international market.

SWOT Analysis

The success of business on the international market dependents on many factors; therefore, business entity needs to have an effective plan to succeed in the complex and ever changing international business environment (Bensoussan, & Fleisher, 2008). In order to plan effectively, the Go-Pro Company will be required to conduct SWOT analysis in order to assess its own strengths, weaknesses, opportunities, and threats.


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The company has a strong management team that has an extensive experience founded on the principle of professionalism and quality. Presence of strong management team ensures that the Go-Pro Company is steered toward achievement of its expansion goals. This aim is likely to be achieved through making strong decisions and supervising other employees.

Skilled Employees

The Go-Pro Company has a strong staff comprising of sport-oriented professionals that design sports products that can satisfy the needs of the wide circle of clients. This fact probably will ensure that the sport needs and expectations of each client are met.

Strong Financial Base

The company has strong financial base of about $254 million in cash, which can be used in expanding its services and products on the international market. The company also enjoys high profit margins as compared to its competitors, which is equal to 41.3 percent. In addition, the company has no liability and it is not affected by the interest rates from the credit market.

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The Go-Pro products cost much more than those of the same kind offered by its competitors. Critics argue that the price is not justified especially in the period of fierce market competition (Bensoussan, & Fleisher, 2008). The Go-Pro company products price is the main weakness because a large section of consumers opts to buy or rent similar products and services at a lower price from other market players. The Go-Pro company market share has been reducing in the recent past due to increase in number of competitive firms providing similar services and products.


In the last few financial quarters, Go-Pro has been making a lot of profit in the industry. Therefore, it has a strong financial foundation. This fact serves as an opportunity for the company to penetrate the international market since its survival during tough economic periods is assured (Bensoussan, & Fleisher, 2008). In addition, there is a high demand for skating and surfing products on the international market today. Therefore, the company has an opportunity to expand its market share, an aspect that probably will grant the company a significant advantage over its competitors in the nearest future.

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Go-Pro is currently facing intense competition from local sport utilities, product and service providers. The local firm is able to offer similar services at a much lower price. Therefore, Go-Pro experiences intense competition and faces a possible threat of losing its market share. In addition, the sport product market is already saturated with intensifying competition (Bensoussan, & Fleisher, 2008). This fact leaves Go-Pro with the only option of providing better sport services and goods than its competitors do; otherwise, it risks losing its market share. Furthermore, due to recent changes in political, economic, and weather conditions, the demand for Go-Pro products and services may significantly change hence result to reduction in both sale and profit margins.

The SWOT analysis indicates that, even though the company is experiencing few challenges in the domestic market, it has the potential of venturing on the international stage. The financial base of the company complemented by strong management will ensure the company penetrates the international market quickly and successfully (Bensoussan, & Fleisher, 2008). In addition, the demand for sport products and services offered by the company is extremely high on the international market due to the increased spending on leisure and gaming activities. Therefore, the Go-Pro Company needs to utilize the opportunity before it is seized by its competitors.

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Environmental Analysis

New Zealand is one of the largest countries in Oceania, and it makes one of the largest economies in the region other than Australia. According to the recent statistics, New Zealand enjoys a nominal GDP of 153.25 US dollars, and stable population of approximately 4.4 million. In order to venture in New Zealand market, it is important to understand environmental situation in the country. It includes demographic, political, economic, technological, and natural environment, and infrastructure, in the country (Kleibo%u0308hmer, 2012).

Demographic Environment

New Zealand has a stable population of approximately 4.4 million according to 2011 vital statistics. Large segment of the population is highly educated and provides adequate labor force needed to promote stable economic growth. Although the labor market is considerably weak and is influenced by high level of household debt, the public consumption has remained positive. In addition, large section of the population enjoys middle income and often practices modest lifestyle.

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Political Environment

The political and legal environment in New Zealand is stable, and private sector enjoys much less political interference from the government. The judicial system is independent, and private property rights are strongly protected. The existing legal framework ensures that the integrity and transparency in the government is maintained. Both income and corporate tax are also low and stand at a rate of 33 and 28 percent respectively. In New Zealand, the entrepreneurial remains to be the most competitive and efficient sector; hence, it opens an opportunity for external investors (Kleibo%u0308hmer, 2012).

Economic Environment

New Zealand has a strong economy with a nominal GDP of $153.25 dollars. The country GDP per capita stands at $36,648 million, with an annual GDP growth rate of 1.4 percent. The inflation rate - 4 percent. The trade-weighted average tariff rates are low and stand at 1.6 percent. There are few investment limitations in New Zealand today, and foreign investment are welcomed and supported by stable economic environment. In addition, the country has large skilled labor force that drives the country economy (Kleibo%u0308hmer, 2012).

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Infrastructure and Technological Environment

The country has a strong transport and communication network that enhances connectivity in the country. The country has approximately 92,000 km of roads, with 63 percent of the road being paved. In addition, the country has 3,900 km of narrow gauge rail track, which forms a rail network that links almost all country’s urban centers. In the technological sector, the country has developed a truly competitive communication industry (Kleibo%u0308hmer, 2012). It has a number of companies that offer the Internet access, basic and long-range telephone services, as well as cellular services. The major mobile service providers include Telecom and Vodafone. The Internet access is widespread in the country, with two third of the homes having the Internet connection.

Natural Environment

New Zealand has favorable natural environment. It has beautiful landscapes, wildlife, lush forests, and pleasant climate that make it possible to enjoy numerous outdoor activities. The country has unique flora and fauna, with a favorable glacier and fiords, as well as sandy beaches. New Zealand does not experience large temperature range like the one that is common in most continental climate zones. Since the country is found in the south hemisphere, the temperatures decrease as one travels to the south. The warmest months are January and February, whereas June, July, and August are the coldest ones. Outdoor activities like skating and snowboarding are enjoyed year-round.

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Business Strategy

The Go-Pro company has been in the sporting utilities business for a long period already. Environmental analysis indicates that the company will successfully open stores in locations where white-water rafting, snowboarding, and surfing are common. New Zealand has calm coastline attractive for white-water rafting and surfing, and opening stores in the region will be a goof strategic opportunity for the business (Campbell, & Houston, 2012). Go-Pro is a perfect player to satisfy the needs of people of New Zealand since it will provide all services in one to those interested in camping, surf, and snow tours. This is because the company will make sport utilities required for such adventure available for sale or renting (Campbell, & Houston, 2012).

The Company products will include surf wears and other board sport related equipment. The production team employed from the mother company will play a vital role in designing the products in accordance to the local people’s needs and preferences. The company will also have a line of apparel that suits all surfing and skating outdoor activities. The human resource personnel will ensure that the needs and aspiration of individual employees and that of the client are met. This fact will play a vital role in strengthening the team providing services to the customers.

Marketing Technique

Capturing new market provides a vital opportunity for the company to grow. Appropriate strategies for a unique company such as Go-Pro will enable the company to triumph in the new terrain of New Zealand. In order to reach a large segment of customers, Go-Pro will establish a store in every location for customers to purchase or rent the surfing products. This will make the company establish itself as the main and only provider of surfing utilities product. The company should also advertise its product to the public in order to increase its market share before competition crops up in the region (Milligan, 2012).



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