GoPro is arguably the juggernaut of the business. However, if recent happenings are anything to go by then its dominance in the industry is under threat more than ever, with Life Clips Inc (OTCMKTS:LCLP) right on its heels in pursuit of market share. Competition, cannibalization, and market commoditization are some of the other challenges that continue to pile more misery on the giant action-camera maker.
Race for Market Share
ION Worldwide filing for bankruptcy early this year has all but provided a glimpse of how things can get messy in the business. GoPro is already feeling the effects of the turmoil in the business its stock having shed more than 30% in market value, since the start of the year. With the stock trading at lows of $11 a share from highs of $65 a share as of last year, the company’s prospects are under immense pressure more than ever.
Even though Life Clips is mostly seen as a penny stock, it is already making a name for itself in the action sporty camera industry. The cam-maker is already giving GoPro a run for its money in the production of cameras targeting families as well as athletes.
Life Clips Big Play
Life Clips has resorted to developing products that are unique in their own right as it seeks to steal some market share from its rival on sales. Going for features that GoPro does not have in its products is the company’s big play as it looks to give customers a reason to buy its products at the expense of others. Its efforts are already paying up given that the pioneer of action camera has continued to register a decline in sales in recent quarters.
Some of the features that Life Clips is using to fend off competition from GoPro include built-in gyroscope that ensures its cameras offers the highest level of stabilization when taking photos. The company is also enticing customers with 4K, 2K 1080 and 720 video options as well as 32GB storage capacity.
Another front that Life Clips is hoping to undercut GoPro on sales is on cost. Given that its cameras cost 50%, less than that of its rival, it will always attract strong demand. The company insists that its main goal is to offer customers products with comparable or far better features at affordable price. It is a front that GoPro Inc (NASDAQ:GPRO) is struggling to compete given that it has always positioned its products for the high-end market.
GoPro’s Response
GoPro is already looking into the future having taken a beating over the past year for failing to release a product that thrills seekers and adrenaline junkies. Hero 5 should be the company’s next-generation action camera intended to answer skeptics who continue to question the company’s prospects.
The action camera comes with 3D video capture capabilities and dual lens setup as the action cam-maker looks to fend off the threat posed by the likes of Life Clips Inc (OTCMKTS:LCLP). GoPro could launch the camera before Christmas.
Bottom Line
There is no doubt that when it comes to sporty action cameras, GoPro is the number one brand. However if recent sales reports are anything to go by, then the company is already feeling the threat posed by the likes of Life Clips and iON worldwide. Delay on the release of Karma drone compounded by weak demand for current products has all but brought to light the fact that GoPro is not immune to competition.
GoPro Inc (NASDAQ:GPRO) is no longer the only company making noise in the fast growing action camera industry. Given that the market is expected to continue, registering strong growth the company should be scared more than ever given the threat posed by the likes of Life Clips Inc (OTCMKTS:LCLP).
