American Outdoor Brands Corporation has been around for almost 165 years and is one of the world’s leading manufacturers of firearms and a provider of quality accessory products for the shooting, hunting, and rugged outdoor enthusiast. Their main customers include shooting and outdoor enthusiasts, collectors, sportsmen, competitive shooters, hunters, individuals desiring home and personal protection, law enforcement and military personnel and agencies, and other government organizations. By applying the topics covered in chapters 1-7, we can analyze American Outdoor’s corporate level strategies.
Five Forces Model Analysis By applying the Five Forces Model Analysis, we can see the possible threats for American Outdoor and understand what they must deal with. For threats from new competition, there may be a higher demand in firearms which is economies of scale. This may motivate entry for new competitors due to an absent barrier. New competitors may also develop a new type of firearm which may motivate entry from product differentiation. They may develop new production technology, have the managerial know-how on the firearm industry, and have favorable access to raw materials which will motivate entry from cost advantages. Government regulation may increase the demand on firearms which motivates
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For the revolver market, there is Ruger and Taurus; for the pistol market, there is Glock, Ruger, Sig Sauer, and Springfield Armory; for the modern sporting rifle market, there is Colt, Sig Sauer, Ruger, Bushmaster, Daniel Defense, and DPMS; and for the hunting rifle market, there is Browning, Marlin, Remington, Ruger, Savage, Weatherby, CVA, Traditions, and Winchester. American Outdoor may lack product differentiation since they rely mostly on firearms and firearm-related products. There may also be a slow industry growth due to price rivalry from the other