GoPro Turning Inventory From Its Biggest Risk to a Point of Strength

GoPro Turning Inventory From Its Biggest Risk to a Point of Strength

One of the most difficult things about running a hardware company like GoPro Inc. (NASDAQ: GPRO) is trying to figure out how much inventory to build. Customers generally shop for new action cameras shortly after new products are launched or during the holiday season, which creates a challenge: build the correct amount of inventory to capture sales, but not so much that there's an excess that eventually needs to be sold at a discount. 

A couple of years ago, GoPro found out the hard way what excess inventory does to a business, and shares dropped 90% as a result. Management has learned its lesson and is now using inventory to its advantage. 

Hero 6 Black was the only new action camera GoPro introduced in 2017, for good reason. Image source: GoPro.

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Source: Fool.com