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SonVu-Sturm, Ruger & Company
SonVu-Sturm, Ruger & Company
SonVu-Sturm, Ruger & Company
Son Vu – 6210
Vision: Sturm, Ruger & Co., Inc. is one of the nation's leading manufacturers of rugged, reliable
The company's vision and mission provide a clear direction of the company's position in the market, and
reflect the corporate social responsibility. However, more focus should be on the side of social
responsibility.
2. External environment to identify threats and opportunities, concern if you were a shareholder?
Threats:
- Law: the gun industry in the United States is subject to strict regulations. Such laws may prohibit all
- Politics: the performance of firms in this industry can be heavily influenced by political factors. For
example, when a new party introduces power policies that can be changed, something worse could lead
- Social: This is also a challenge for this company. Shooting incidents increased, coverage increased,
leading to increasing public concern about the safety of shootings. When struggles, public opinion
Opportunities:
- The company has invested heavily in Research and Development, innovating technical design to
reduce production costs, bring growth to businesses, and create a great competitive advantage for
- Another opportunity is to become a member of the National Rifle Association (NRA). The NRA has
had a great influence on US gun law and policy, the company that is part of the NRA will have a huge
advantage over political law, and at the same time, will have demand and changes in market demand.
If I were a shareholder of Sturm, Ruger & Company, the threat that worries me the most is Social.
Social factors are linked to society and people, if not well controlled, can lead to a fight against the use
of guns, which can lead to business shutdowns. In addition, the gun business also carries many risks
because, when there is something bad related to the shootings, the company's stock price may drop, this
is also something shareholders should be concerned about when first investment in business.
Strengths
The company invests in research and development continuously, generating new revenue
The company has a diversified product portfolio that allows targeting multiple segments of
The strong distribution network that Sturm, Ruger & Company, Inc. Has been built.
Reliable suppliers - It has a solid foundation of reliable raw material suppliers, thus allowing
Weaknesses
Need to invest more in new technology with an expanded scale and different geographic
Ruger financial results show that the company did not meet investor expectations for
The rate of return of Sturm, Ruger & Company, Inc. are well below the industry average.
Threats:
Being subject to the strict control of the law, is one of the most challenging things in this
industry.
Political factors are one of the major challenges for Sturm, Ruger & Company.
Opportunities
The company that is part of the NRA will have a huge advantage over political law, and at the
same time will be able to anticipate demand and changes in market demand.
Opportunities in Adjacent Markets - Ruger Sturm can explore adjoining industries for further
market growth, in particular by expanding the features of existing products and services.
The Changing Technology Context, companies can use these developments to improve
Threats of New Entrants (Moderate): New companies enter the market through lower cost, cost
reduction strategies. So companies must manage all of these challenges and build effective barriers
Bargaining Power of Suppliers (Moderate / Weak): there are many raw material suppliers in this
industry, however the large suppliers have a negotiable advantage for price advantage.
Bargaining Power of Buyers (Moderate/ Weak): in this industry there is not too much
competition, but the online market will give customers the advantage of finding prices, which is a
Threats of Substitute (Weak): emerging products in the industry are not much, and the company is
Rivalry (Moderate): Sturm, Ruger & Company, Inc. business in Aviation / Defense Products &
Services is very competitive. This competition affects the overall long-term profit of the
organization.
The company continuously invests in the research, and development of new products, diversifying
revenue.
The strong distribution network that Sturm, Ruger & Company, Inc. has been built.
6. When launching his company, which business-level strategy did Bill Ruger adopt, and why? What
are some of the risks the firm could face by continuing to use this strategy?
When he launched the company, Bill Ruger used a cost leadership strategy. Ruger is known for
providing high-quality products at low prices. The low-cost strategy is maintained to compete with
competitors on the price factor and it delivers growth and success for the business. But if the company
continues to use this strategy over the long term, it will lead to competition with new industry players,
causing an increase in supply prices, and lower profits in the long run.
7. Compare and contrast Sturm, Ruger & Company with its two biggest rivals, and
Sturm, Ruger & Co., AOBC and Remington can be compaired on the basis of valuation and stock
performance. Contrast can be done on the basis of growth and risk factors as all the three companies
have the same risk factors and provide cut throat competition to each other.
Diversify product lines, by the needs of customers, innovation will lead to increased sales.
Contribution to social welfare is a development strategy for this sensitive industry. Because
social factors are a common threat to companies in this industry, it's good to turn threats into
growth opportunities.
Ruger's board of directors consists of nine people, each of whom has a unique strength in their field,
which helps the company to be developed in a comprehensive and sustainable manner. Specifically, we
can see that the chairman, and vice president have great experiences in investment and manufacturing.
CEO, with excellent management experience, with over 10 years of experience in the position of CEO.
Estimated sales in 2020 increased 44% compared to 2019. New products represented $ 111.2 million or
22% of firearms sales in 2020, compared to $ 102.0 million or 26% of firearms sales in 2019. The
Company's finished goods inventory decreased by 58,600 units during 2020. The gross margin was
It seems that the appropriate strategies proposed by the company have worked effectively with the
With the above financial indicators, if there is a chance, I will invest in the company. However, I will
invest in small amounts, because I love to invest in the short term, and I am really concerned about
political and social issues, which can quickly affect companies. gun industry.
References:
Hitt, M. A., Ireland, D. R., & Hoskisson, R. E. (2019). Strategic Management: Concepts and Cases:
Competitiveness and Globalization (MindTap Course List) (13th ed.,198–210) [E-book]. Cengage Learning.
https://ebooks.cenreader.com
J.Dothan, R. (2018). Sturm, Ruger & Co. and the Business of Guns SWOT Analysis & Matrix / MBA
Fern Fort University. (n.d.). Sturm, Ruger & Company, Inc. SWOT Analysis / Matrix.
http://fernfortuniversity.com/term-papers/swot/nyse/2452-sturm--ruger---company--inc-.php
Sturm, Rugers & Co, Inc. (n.d.). 10K Reports. Sturm, Rugers & Co, Inc.
https://www.ruger.com/corporate/PDF/10K-2020.pdf