The threat of new entrants into the industry is another problem that the management of GoPro must take into account as it launches the new product. The firm will be able to create for itself a pool of loyal customers that trust its products over what rival firms offer. The comparative advantage 2 will enable it offer unique products in the market than its market rivals. The ability of this firm to produce drones in a more efficient and cost effective manner than the market rivals will enable it meet the needs of its target market (Samuelson & Marks, 2012). It will have to take advantage of its unique capabilities to deal with this rivalry. The firm’s management will need to come up with ways of managing the stiff competition. The level of competitive rivalry is getting stiff as each of these players struggle to dominate the market. Currently, Mavic Pro, Hobbib Inc, 3D Robotics, and Blade are the direct competitors in the market. One of the most important factors that must be taken into consideration when launching this product is the level of competitive rivalry among the existing players in the industry. The figure below shows the five forces that must be taken into consideration when using the model. This model explains forces in an industry that may affect operations of a firm directly or indirectly. Porters Five Forces will, therefore, be used to identify the industry forces and how this company can deal with them appropriately. Having a framework that analyzes competition levels within the industry and business strategy needed of the firm is critical for the firm to achieve success (Lannoye, 2015). The forces within the industry have direct impact on the performance of this new product as soon as it is launched in the market. As such, a detailed analysis of the industry will be critical at this stage to help the board understand how this new product will perform in the market once it is launched. It is normal that the directors will need information about forces in the industry within which this firm operates. GoPro Karma drone is about to be launched and the approval of the board of directors will be needed. The report provides a detailed analysis of the planned launch of the new product that will help the board of directors make informed decisions. It will help the firm to avoid deadweight loss 1 by improving economic efficiency in the firm’s operations (Samuelson & Marks, 2012). The management has put systems and structures in place to ensure that equilibrium for this new product is achievable as soon as it is launched. The initial tests show that it is easy to control and it can cover great distance, which is in line with the expectations of the customers. The new product has been developed and the team has already tested it. It enables its users to take aerial photos and videos with ease. It was developed following the feedback that the company has been receiving from its customers in the recent years. The new product is expected to deliver a high value to the company’s customers because of its unique features. It is on this background that the management of this company made a decision to come up with GoPro Karma. It must understand the changing tastes and preferences of its customers and be able to develop new products that exceed customers’ expectations to ensure that they are always thrilled (Samuelson & Marks, 2012). Its sustainability depends on its ability to deliver quality products to the customers in a profitable manner. The market is highly competitive and this firm is under great pressure to find ways of becoming profitable again. In the financial statements released for the year ending 2015, both the operating income and profit for the company dropped. In the recent past, GoPro has experienced a number of challenges in its operations which have affected its profitability in the market. The report ends by looking at ethical and legal considerations that must be observed by the firm when launching the product. The report then focuses on the project itself, looking at its benefits to the firm, how it should be implemented, and possible challenges. It then narrows down to company analysis in order to outline its capacity to undertake this project. After a brief introduction, the report provides a detailed analysis of the industry in which the firm operates. The report provides a detailed analysis of the project in a way that will help inform the board of directors when making the decision of either approving or rejecting the project. Karma drone project aims at launching a new product, GoPro Karma drone camera, into the global market.
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