GoPro is going public – can make up to $100 million
Camera maker GoPro, which sources its production in China, plans to list on the Nasdaq and aims for big profit. The company was founded in 2004 and the production was outsourced to the Shenzhen-based Chinese company. By now, GoPro provided hundred thousands of products for customers around the world and made recording their adventures possible.
According to the reports, GoPro is a profitable enterprise, for example in 2013 it generated revenue of $985.7 million, which is more than year before ($526 million). GoPro managed to find a niche in the highly competitive market dominated by major players and hopes that going public will be another stimulus for further development. The final size of the company’s IPO may be different, as the company may amend the amount on future registration documents.
It is worth noting that GoPro achieved its success mostly due to employing of the highly successful business model: production is being sourced to China, but the company remains in close ties with the Chinese factory. Proper pricing policy enables Chinese contractors to deliver units of high quality on the reasonable price. GoPro, on their side, has strong brand position and global distribution network. When these strong points are put together, China sourcing can be a very successful operating model.
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