Action Cam hardware business has seen tremendous growth in recent years. The digital technology has played a big role in enhancing growth on building the action Cameras. However, there are challenges the business experiences in the process of setting up the hardware. To increase your market share in Action Cam business you need to produce quality and affordable gadgets which are flexible and durable. Consumer chain link has of late improved; the main challenge is maintaining the business.
Emerging markets pose a challenge in this business. Currently, they produce Action Cams with value added functions which are acceptable in the market. Competitors have to curb this challenge by lowering their prices as well as building more complex cameras at relatively the same price.
The king of action cameras and different choices to major camera makers, GoPro, has also had a share of maintaining the hardware business. It has faced a 70 percent drop in market share after they placed their initial Public offer High (IPO).
Competition from established companies also poses a great challenge in this business. Consumers demand more confiscated gadgets which the small hardware enterprises might not be able to meet. The pressure to build complex gadgets has reduced the growth of some businesses since they lack the technical skills to integrate complex features on the action cams.
Developed enterprises in the business can afford to reduce their prices without making losses. New businesses cannot afford low prices for the gadgets hence reducing the growth of their business in general.
Action Cam hardware business success is also dependent on various third party applications integrated in them. Startups have a challenge to create a presence in the add-ons and add-ins to have a platform where consumers can appreciate their products. The third party developers are adamant to engage startups in the service provision due to uncertainty in the growth of the business.
Market response for new enterprises is poor. This means most startups have to spend more in marketing and promotions to create a presence in the market. Once the big companies realize this they tend to produce a similar product and take advantage of the trademark to customize on sales.
Big companies have capitalized on franchising to increase sales. Consumers tend to buy brand as opposed to the gadgets, new entrants in the hardware business are disadvantaged to build their brands due to low consumer turn out. The old brand tends to succeed due to the franchising system as opposed to start ups.
The success of Action Cam hardware business is directly dependent on capital and infrastructural investment pumped in the business. Startups lack the capacity to pump huge investments in sales and marketing due to uncertainty and competition from the big brands. This poses a huge challenge on the business growth. To curb this challenges startups who want to succeed in the business must go an extra mile and invest in promotions and value added services to increase their market share. The challenges can be rectified when there are proper company systems.