Environmental and Internal Analysis of Sturm, Ruger, & Co

Executive summary
Internal Analysis Part
The company has a clear vision statement based on the company’s corporate responsibilities and gun users. The vision statement raises awareness about using guns through educational programs. The company sets safety criteria for the betterment of users;
the company has not set a mission statement; however, the aspects of the mission can be extracted from the vision statement. Sturm believes in serving shareholders, promoting customers’ and employees’ interests, and improving the brand’s reputation.
Based on Porter’s Five Forces Model, The threat of new entrants is low because new businesses need massive investment in research and development and capital before launching their brands. These all factors lead to a low threat for new entrants. The threat of rivalry is high because there is an intense rivalry in the US gun industry as, on average, 3.5 million firearms are produced annually. Over 465 arms and ammunition makers and over 50,000 weapon traders in the USA. Sturm is the only firearms manufacturer in its niche market, and there are no known close substitute products. Therefore, it gives the company a significant advantage over potential competitors. Buyers have the power to contact any competitor, offering them their desired outcomes on their terms and customization requirements. The company enjoys a strong position in the firearms industry, limiting the threat of new entrants and ensuring that suppliers cannot extract significant price concessions from the company. It leaves consumers as the main bargaining power in terms of pricing.
Based on SWOT Analysis, The major strengths include a firm brand name, a wide variety of products, a loyal customer base, and a well-known reputation for quality. It offers quality products and a loyal customer base, making it easier for Sturm Ruger to penetrate new markets and grow its business. However, the company relies on firearms sales, a volatile and highly competitive industry. Another weakness is that Sturm Ruger does not have a strong presence in key overseas markets. The company should focus on technological innovation and spend a significant amount on research and development. Any non-compliance with these standards would lead to severe risks and penalties, which will lead to a risk of expensive lawsuits. In addition, the company regulates authorities like the Bureau of Alcohol and Firearms. Finally, there is a shortage of skilled labour force, making it challenging to attract a talented workforce with the right skills.
To improve the market share and market recognition, the company concentrates on affordability and convenient access to goods internationally. There are four alternative courses of action recommended for the business based on which best-suited alternative is chosen. The first alternative is the expansion through e-commerce penetration. E-commerce allows companies to reach a wider audience through traditional marketing methods. The second alternative is mergers with other businesses for market development in Asia. The company should focus on developing new products that will appeal to the Asian market and create a marketing strategy that focuses on the unique needs of the Asian market. The thi...