Global Positioning Systems for Firearms

Global Positioning Systems for Firearms

Spencer Hutchinson

MKTG 522 Marketing Management

20 February 2013

1.0 Executive Summary

Tactical Tracking is a company designed to become the industry leader in global positioning tracking sales for firearms. It is owned by Spencer Hutchinson, a young driven entrepreneur who has worked in the GPS tracking industry for 15 years. Having owned the current business that is now taking on this endeavor for 12 years. Tactical Tracking is well known and respected within the community.

The company is located in Salt Lake City, Utah. Although this field is in its infancy Tactical Tracking believes that with its proven business model the company will achieve and maintain market superiority, with an easy to use website and an efficient distribution system.

Tactical Tracking mission is to provide the finest tracking devices at the lowest cost possible. Tactical Tracking will have 60% market share of the firearm tracking with in the continental US. Tactical Tracking will maintain a 95% gross profit margin and make 25% net profit margin after 12 months of operation.

2.0 Situation Analysis.

Tactical Tracking is beginning its first year of operation. The company's product has faced mixed feelings with levels of support. Marketing will be the key to the development and product placement as well as the growth of the customer base. Tactical Tracking offers several model varieties of Global Positioning Systems (GPS) that will fit each make and model of firearms available. Given the recent actions taken by the government to require a GPS tracking device on all new firearms manufactured, makes this a growing industry with great potential.

Critical issues that may be faced could be in a nature of anti gun control advocates publishing lies about the negative things with the GPS tracking system, like excessive government control and eventual removal of all firearms from the citizens. The potential overturn of the law making the GPS trackers illegal and forcing the company line out of business would be a likely critical issue that cannot be overlooked.

The biggest macro environment force that needs to be considered by Tactical Tracking is governmental regulations. As mentioned above the regulation of firearms tracking devices may change. Another consideration should be competitors, in order to win the bid for this government contract Tactical Tracking will have to place a competitive bid for the contract. Quality products at low prices will be key.

Tactical Tracking has the capabilities to be able to track the location of a lost or stolen firearm. It will also have the ability to locate and identify the weapon and its owner while a crime is actively ongoing, to educate local law enforcement as to what they would be working against.

2.1 Market Summary.

Given that the market has been forced, the market could be defined as all firearm manufactures and any firearm owner. I would also define the market as being volatile, with anti-gun activist supporting this legislative action and the pro gun rights activists rallying against it. With the market being volatile Tactical Tracking understands and seeks to fulfill the following benefits that are important to keep a loyal customer base: Quality craftsmanship, we believe that the customers work hard for their money and would rather not spend it on a less than superior product. Well-developed designs, this market is in its infancy and shortcuts in designs cannot be made to get the product out to the market first. Tactical Tracking's industry experience and dedication to the product and its consumers will provide it with the appropriate attention needed to make a quality product. Customer service, exemplary service is required to build a loyal customer base and maintain the governmental contract.

The market is large there were "5,400 licensed firearms manufactures in the United States in 2011" (Roberts, 2012), and there were according to Roberts "310 million total nonmilitary firearms in the United States as of 2009" (2012). One in which the sales of privately owned firearms increased, according to Ann Roberts, "40 percentage of guns sold were through, unlicensed private sellers" (2012).

Due to recent violent actions with the use of firearms sales have been soaring because of fears of stricter firearm control legislation or total firearm bans in the United States. Michael Copper a reporter for the New York Times reported that; "2.2 million background checks were performed last month, an increase of 58.6 percent over the same period in 2011" (2013).

2.2 SWOT Analysis.

Strengths.

* Ability to track lost or stolen weapons through local police department.

* 20 years of experience in making GPS tracking devices.

* Its use of a flexible business model.

* Ease of converting to making tracking devices for firearms gives an advantage.

Weaknesses.

* Cash flow and start up cash-drain.

* The size of the project and the strain from it on the company.

* Lack of supply chain robustness.

Opportunities.

* Market developments.

* More governmental contracts

* Open to private markets as well.

* Individualized personalization we offer and innovation creates effectiveness and more opportunities.

* Ability to move to a global market.

Threats.

* Political and legislative effects.

* Market demand.

* New technologies, services, and ideas making product obsolete.

* Loss of government contract.

2.3 Competition.

Tactical Tracking is and has developed its own market concerning the GPS tracking device used for the firearms. Although there are a few