3

Running head: TASER INTERNATIONAL 1
Taser International (Axon) Case Study
Samantha Wright
Siena Heights University

TASER INTERNATIONAL 2
Case Statement
Axon’s future in the coming years is bright. With innovative technology and a growing
market with new services, Axon is prospering financially.
Vision Statement
Axon currently does not have a vision statement.
Mission Statement
Axon’s mission statement is as follows: “The priorities and challenges of law
enforcement have been at the core of Axon’s mission. We’re committed to developing the latest
technologies to make the world a safer place. Our mission is simple: Protect Life.” (n.d.)
Mission Table Evaluation
Table 1 Mission Table Evaluation Matrix
Concern for
Products/
Customers Markets Technology Survival, Growth
Service
& Profitability
yes yes yes yes yes
Concern for Concern for

Philosophy Self-Concept
Public Image Employees
yes yes no no
Using the evaluation matrix, Axon’s current mission statement speaks on almost all of the
components. The only components that Axon did not mention was their concern for their
employees and their concern for public image. The table above shows that if the two components
were added, it would then be enhanced.

Customers are mentioned in the mission statement. Law enforcement agencies are
specifically mentioned, but other customers are the military, private security, and personal
defense markets.
Products or services are mentioned in the mission statement. Electrical weapons and
video systems. Including extended range projectiles, 12-gauge pump action shotgun projectiles,
handheld stun devices, training cartridges, batteries, etc.
Markets they are involved in are mentioned in the mission statement. Law enforcement
agencies in the United States and around the world in over 150 countries. Trying to penetrate the
private security business.
Technology is mentioned in the mission statement. The company is technology current,
their products are constantly changing with innovation.
Survival, growth, and profitability are mentioned in the mission statement. Axon is
experiencing substantial growth because they are a technological leader in this market.
Philosophy is mentioned in the mission statement. “Protect Life” is their condensed
mission statement and is their overall philosophy. Either that be the enforcer, or the other person
on the other end, Axon is dedicated to justice.
Self-concept is mentioned in the mission statement. Axon’s major competitive advantage
is their technological advancements and the packages they offer along with their products to
agencies.
Public image is not mentioned in the mission statement. Along with the market they are
in, legal issues follow them as a company. Because of these cases that have been brought before
the Supreme Court, the public image of the company may not be in the best light.
Employees are not mentioned in the mission statement. By the nonexistent mention of
their commitment to their employees, Axon may not view their employees as an valued asset.
Milestones
As a leader in their industry, Axon has had many milestones in their history. Their
expansion into different markets and constant innovation help them keep their place at the top.
More milestones are guaranteed to be added as the company continues to expand and grow.
● In 1993, founders Rick and Thomas Smith, along with Jack Cover developed an
electronically controlled taser device.
● In 1998, AIR TASER, Inc. changed its name to TASER International, Inc.,
TASER conducted its first training in Canada in Ottawa and Montreal. In 1999,
the first Taser product was used by an officer. (David)
● In 2009, TASER announced TASER 3.0, later renamed Evidence.com which was
an online cloud storage site, launched their first body camera for law enforcement,
the Axon Pro camera, TASER released the TASER X3 triple shot. These body
cameras were able to upload their footage to an online cloud on evidence.com.
With little restriction to what is done with body cam footage and little legislation,
Axon is working with states to pass body cam laws.
● In 2009, Sebastian County in Arkansas, a prosecuting attorney used the first
officer involved shooting captured by an Axon body camera that cleared Fort
Smith Police Department from any charges. When responding and investigating a
domestic disturbance, the officer entered a house to find an armed man. After this
case, Taser pressed for a release of the case and automatically gained publicity.
The company emphasizes the findings that the officer was exonerated from all
charges. (How Police).
● In 2012, TASER announced its first point-of-view camera, Axon Flex camera.
With this new technology, an estimated 100,000 lives were saved from potential
death or a serious injury.(AXON)
● In 2018, Axon acquired VIEVU, a competitor in the body camera industry. Along
with VIEVU’s subsidiaries, they made partnerships to aid in the production of
both their products. (Axon Acquires)
● In 2019, Axon launched its first advanced AI-powered tool, Redaction Assistant,
enabling agencies to quickly share evidence with the public. Officers spend
approximately two-third of the workday filling out paperwork and Axon sees this
as a failure in technology. By integrating Axon AI, they believe by improving
efficiency and accuracy, it will keep officers doing fulfilling work in the
community. (AXON).
The milestones in Axon’s existence shows they are committed to continued growth and
improvement. Through their acquisitions and partnerships, they cement their place as a leader in
their fields and with continued innovation they will grow.
External Assessment
Using the External Factor Evaluation Matrix shows a complete review of Axon and what
they face in the industry using the opportunities and the threats. While tasers and body cams are
two different markets, they often pair the two devices together in bundles and can be sold to the
same types of consumers.
Weighted
Opportunities Weight Rating
Scores
Growing number of law enforcement agencies are

1 0.02 3 0.06
going "gun-less".
A majority of Americans say gun laws should be
2 0.1 4 0.4
stricter.
Majority of states in the U.S. have no regulations to
3 0.01 2 0.02
use Taser products.
Currently seven states always require state law
4 0.05 4 0.2
enforcement to wear body cameras. (Teigen)
Market for non-lethal self-defense tools are
5 0.1 4 0.4
expected to grow throughout 2025 (Self)
“The global self-defense products market size was
valued at USD 2.4 billion in 2018 and is expected
6 0.1 4 0.4
to expand at a CAGR of 5.9% from 2019 to 2025.”
(Self)
7 Government agreements 0.1 2 0.2
Weighted
Threats Weight Rating
Scores
1 Growing divide between police force and civilians. 0.05 2 0.1
2 Competitors easily recreate technology. 0.03 3 0.09
3 Legal issues 0.1 1 0.1
4 State regulations 0.1 1 0.1
5 Product demand 0.04 2 0.08
6 Market span 0.1 2 0.2
Civilians medical issues can lead to severe harm or
7 0.1 1 0.1
death
TOTALS 1 2.45
The external factor of “Growing number of law enforcement agencies going "gun-less"”
is stated because several cities are passing laws to see how crime will increase or decrease if law
enforcement would not carry lethal weapons. The weight is .02, because the amount of is very
small, and the rating is at a 3, because in cities like these, Axon does very well in consumption.
The external factor of “A majority of Americans say gun laws should be stricter.” is
stated because with this statement, non-lethal weapons will benefit in sales. Totally, 60% of
Americans said gun laws should be stricter (Gramlish). The weight is at .1 because it is
significant that American believe this. The rating is at a 4, because Americans will be looking for
another form of self-defense.
A majority of the opportunities have to do with the rise in non-lethal forms of defense.
With rising tension between the police force in the United States, the market is growing for these
types of products.
The external issue of market span is weighted as .1, because there is a limited market to
which Axon sells to. People are not particularly interested in buying a majority of their products.
For personal use, their taser is too high powered than others on the market.
The external threats have to do with legal issues and marketing strategy. The legal issues
cause Axon to have a direct effect from them. States passing laws about the use of these tools, or
the regulations against them.
Internal Assessment
Using the Internal Factor Evaluation Matrix, Axon can be subjected to a complete review
of opportunities and threats that are presented in their own company. Axon is a leader in their
industry and is constantly looking for ways to improve.
Weighted
Opportunities Weight Rating
Scores
Successful track record of integrating
1 complementary firms through mergers & 0.1 3 0.3
acquisition.
2 Superb Performance in New Markets 0.1 4 0.4
3 Reliable suppliers 0.03 2 0.06
4 High level of customer satisfaction 0.2 3 0.6
Successful track record of developing new products
5 0.05 3 0.15
– product innovation.
6 Strong Brand Portfolio 0.05 4 0.2

7 Available training for law enforcement 0.05 3 0.15
Weighted
Threats Weight Rating
Scores
1 Limited success outside core business 0.02 1 0.02
2 Price of merchandise 0.05 1 0.05
3 Highly centralized decision making 0.05 1 0.05
4 Little marketing strategies 0.05 2 0.1
5 10% drop in stock early this year (Smith) 0.1 1 0.1
6 Suing the United States government (Smith) 0.1 1 0.1
7 No research in facial recognition (AXON) 0.05 2 0.1
TOTALS 1 2.38
Axon is a successful company that has a strong research and development budget that
yields great products. The technology and innovation they design is ground breaking compared
to others in the industry.
Axon offers different training programs for law enforcement to learn how and when to
use their products. The use of their cloud that stores video footage and information, is a great
tool to use that officers will learn how to use in the training.
Early this year, Axon filed a lawsuit against the U.S government. Because of this, their
stock dropped 10% (Smith). Suring the Federal Trade Commission in a bid to have antitrust
proceedings over their acquisition of VIEVU. By doing so, they put themselves in a bad light
because the government is one of their biggest customers.
Axon’s internal opportunities have to do with their past and current performance in the
markets. They are growing and are continuing to gather new departments under their wing of
products. They offer online training for officers and departments which goes along with their
condensed mission statement “protect life”. In regards to their acquisition of VIEVU, they
partnered with their past subsidiaries to package their products together for sale in bundles.
The price of Axon’s merchandise is higher compared to others on the market. Their price
makes sense because of the grade to which their tools can be used for example, their tasers.
While not meant for normal use in the public, when looking for a taser, Axon’s prices are not
competitive in that aspect.
Recently, Axon said they do not plan on researching or developing technology for facial
recognition (Schuppe). While, ethically this is seen as good, there are currently other companies
monopolizing on this market that Axon could dominate.
SWOT Analysis
The SWOT Analysis is used for the purpose of looking at the large scope of the
company’s strengths, weakness, opportunities, and threats. Axon’s main strengths lie in their
current market position and their customer satisfaction. Some of their main weaknesses lie in
their limited success in outside markets and their little marketing strategies. Opportunities the
company can seize are always the number of agencies and departments starting to go gunless and
the rise for a demand for the police to wear body cams . Some of the threats that Axon faces are
product demand and their market span.
Strengths
Axon has a successful track record of integrating complementary firms through mergers
& acquisition. Their recent acquisition of VIEVU helped them make contact with their
subsidiaries to partner together. Starting out as a taser manufacturer, Axon has developed
significantly branching out into the bodycam market and now is the largest competitor. Axon has
reliable suppliers who help make the product one of worth and durability, especially when out in
the field.
Axon’s products are well made and in turn, the company has a high level of customer
satisfaction. They have a successful track record of developing new products through their
research and development department. When departments buy their products through bundles,
officers have access to online training for the products they offer.
Weaknesses
Axon is a strong company, but it does have its weaknesses. They have had limited
success outside core business. Because they have such a specific core customer base, they do not
have the ability to reach much further. Another issue from this, is that limited marketing
capabilities. While they do run different bundling offerings, they cannot go through with
traditional or basic marketing strategies. Compared to other brands who sell the same product,
Axon’s price is set higher than most. Axon’s organizational structure is a highly centralized
decision making- top down. While it is normal, if there are decisions that are made without
consideration, it could potentially be detrimental to the company.
Opportunities
The opportunities that Axon has is growing. There is a growing number of law
enforcement agencies are going "gun-less". This in turn will put more of an emphasis on the use
of tasers. A majority of Americans say gun laws should be stricter and this puts more stress on an
officer to use non-lethal actions. Majority of states in the U.S. have no regulations to use taser
products. While there may be in the future, for now, this gives free reign to Axon as a company.
Market for non-lethal self-defense tools is expected to grow throughout 2025.“The global
self-defense products market size was valued at USD 2.4 billion in 2018 and is expected to
expand at a CAGR of 5.9% from 2019 to 2025.(Self)” With 18,000 law enforcement agencies in
the United States, approximately only 10,500 police department's mandate the use of body worn
cameras (Miller).
Threats
Threats that could appear to influence Axon’s future is the growing divide between police
force and civilians. While it is Axon’s mission to protect life, there are instances where their
products could be in use when something suspicious happens. While their product has not been
the center of attention in recent news, body cameras are a topic of debate in the police force and
tasers can sometimes lead to death. Bad media attention is not wanted and could be a threat.
Competitors could potentially recreate Axon’s technology almost easily. As a company they
have to beat others to new innovation to stay at the top.
Industry Analysis
Porter’s Five Forces Analysis
Developed by Michael Porter, Porter’s Five Forces Analysis shows how different
competitive forces can affect the industry factors on a company’s strategy. The five factors that
are discussed are the potential development of substitute products, rivalry among competing
firms, potential entry of new competitors, bargaining power of suppliers, and bargaining power
of consumers.
Potential Development of Substitute Products
While there are other companies who produce similar products, there is very little room
for innovation in terms of a basic body camera for police officers. One thing that Axon offers is
an online cloud for departments to use for the storage of footage instantly.
The key component to the Axon product are their cloud offerings. Along with their body
cameras, cloud storage is offered and often bundled along with their products. When departments
invest in the Axon product, they plan on using the product and its resources in the future for the
long-term.
Axon is the inventor of the taser and is a leader in their market. A substitute product that
officers can easily carry on them is mace. A taser carries a lot of risks, while being a non-life-
threatening tool. If people who get the end of their product and have unknown health problems
the electricity can be life threatening, which is not the purpose it was used for. Tasers are more
life threatening and a concern for officers as they also don’t have the alleged stopping force
(Gilbert).
Rivalry Among Competing Firms
While there are many companies who are in the body camera business, Axon has the
upper hand compared to other companies in terms of market reach. They are the leader in the
body camera industry and are leaders in innovation in their market. In early 2018, Axon acquired
VIEVU, ending their rivalry (Soper). While not their largest competitor, they have still had to go
to court to deny claims against antitrust laws.
MACE Security International and PepperBall Technologies are competitors in non-lethal
weaponry. Departments can have officers carry both forms, mace and a taser, but some also just
have officers carry a firearm. There are constant discussions of which alternative is better to use,
so Axon is in competition to see what form the better and more effective tool is. Both are small
firms with MACE stock floating around $0.14 (MACE). There is very little rivalry in the non-
lethal weapons market.
Unlike the weapons market, the body camera market is very segmented. Qualities of
body cameras that are successful are the size, performance, quality, warranty, and ease of
transferring video onto management software. In the U.S.’s major cities by vendor, Axon serves
47 out of the 69 cities. The left are being maintained by three other companies with 10 cities
having no body cameras. (Axon) Two other competing companies are Digital Ally (DGLY) and
GoPro. As departments can choose between body worn cameras, dash cameras, and cameras like
the Axon Flex camera (is small enough to attach to sunglasses), there are a wide variety which
makes it hard to focus on one specific kind.
Digital Ally is in Lenexa, Kansas and manufactures video equipment for law
enforcement, security, and other commercial applications worldwide. Their key products are
audio systems for vehicles for both forward and rear views the law enforcement is required to
have. They also have video equipment that is comparable to Axon’s Flex models along with
cameras that fit other types of vehicles (David). In 2018, they reported a decrease in revenue of
$11.3 million, which was a 23% decrease from the year prior. The reasoning for the drop in
revenue is because their competitor (Axon) has “released new products with more advanced
features compared to ours” (Digital).
Potential Entry of New Competitors
Axon holds a patent on their taser products so there is very little entry for new
competitors in the taser market. In the non-lethal weapons market, there is also little chance of
entry into the market from new competitors. All of the companies are leaders in what they
provide, and it is very hard to innovate these products as they serve very basic functions.
The body camera market is a more saturated industry, but the likelihood of new
competitors is highly unlikely, at least one that can equally compete with Axon. Axon is
currently a leader in the industry and is beating out its competitors.
Bargaining Power of Consumers

The bargaining power of consumers is the pressure businesses are put under by their
consumers. When there is a large group of consumers, this pressure can drastically alter the
decisions that are made by businesses to attract a customer’s business.
As stated before, there is a very small market for tasers, especially ones that are to power
that law enforcement uses. If police departments do want to use tasers as an alternative to
firearms, then there is little bargaining power.
The body camera industry is more saturated than the taser industry. There are multiple
brands that sell cameras comparable to Axon’s models. While they are comparable, Axon’s
products are well received and come with more features than other brands. Axon’s innovative
technology is something that consumers don’t bargain for. Consumers are willing to pay the
competitive price that Axon offers.
Bargaining Power of Suppliers
The bargaining power of suppliers is the pressure businesses are put under by suppliers.
Suppliers do this by pressuring businesses to increase their prices, provide a lesser quality
product or service, and/or making their products and services harder to get. If complying, it could
throw off the balance of supply and demand between consumers and companies.
Axon’s suppliers know the two of their major consumers are the U.S. Military and the
U.S. federal government. These two major consumers need to have products that are quality. The
bargaining power from suppliers is very little because the end users are so important that Axon
cannot make products with lesser quality raw materials and such.
Financial Analysis
Key Statistics
Revenue $530.86M EBITDA $7.21M
Net Income $882.00K Return on Capital % 0.11
Enterprise Value $4.08B Book Value/ Share $13.84
Net Profit Margin % 0.17 Shares Outstanding 59.53M
PEG Ratio -106.81 Last Split Factor (Date) 2:1 (11/30/04)
BETA 0.84 Last Dividend (Ex-Date) n/a
Forward P/E 59.97
Growth Rates
GROWTH RATE % COMPANY INDUSTRY
SALES (REVENUE) Q/Q (LAST YEAR) 49.7 5.00
NET INCOME YTD/YTD (LAST YEAR) -97.01 -24.46
NET INCOME Q/Q (LAST YEAR) 619.47 -31.02
SALES (REVENUE) 5 YEAR ANNUAL AVERAGE 26.40 -
NET INCOME 5 YEAR ANNUAL AVERAGE -46.39 -
Financial Health Ratios
FINANCIALS COMPANY INDUSTRY
DEBT/EQUITY RATIO 0.00 1.31
CURRENT RATIO 3.17 1.13
QUICK RATIO 2.97 0.66
LEVERAGE RATIO 1.56 5.63
BOOK VALUE/SHARE 13.84 0.36

Trading Statistics
KEY METRICS COMPANY INDUSTRY
SHARES SHORT AS OF - -
SHORT RATIO AS OF - -
SHORT % OF FLOAT AS OF - -
SHARES SHORT PRIOR MONTH - -
PAYOUT RATIO 0.00 -
DIVIDEND DATE - -
EX-DIVIDEND DATE - -
LAST SPLIT FACTOR NEW PER OLD 2:1 -
Management Effective Ratios
KEY METRICS COMPANY INDUSTRY
RETURN ON EQUITY % (5 YEAR AVG) 0.17 (6.32) 16.90 (20.72)
RETURN ON ASSETS % (5 YEAR AVG) 0.11 (3.88) 4.36 (4.06)
RETURN ON CAPITAL % (5 YEAR AVG) 0.15 (5.12) 5.78 (7.02)
INCOME/ EMPLOYEE 711.86 10.80k
INVENTORY TURNOVER 6.16 2.59
Profitability
PROFIT MARGINS (%) COMPANY INDUSTRY
GROSS MARGIN 57.88 21.62
PRE-TAX MARGIN 0.39 6.41
NET PROFIT MARGIN 0.17 4.65

AVERAGE GROSS MARGIN 5 YEAR ANNUAL AVG 60.89 21.53
AVERAGE PRE-TAX MARGIN 5 YEAR ANNUAL 6.41 7.72

AVG
Price Ratios
PRICE RATIOS COMPANY INDUSTRY
CURRENT P/E RATIO 5,836.18 5,836.18
P/E RATIO 5-YEAR HIGH 4,985.03 -
P/E RATIO 5-YEAR LOW 47.39 -
PRICE/SALES RATIO 8.35 1.48
PRICE/ BOOK VALUE 5.38 3.69

Where is the firm financially strong or weak as indicated by financial ratio analysis?
The firm is strong based on the indications of the financial ratio analysis’. They show that
the firm doesn’t need to incur too much debt to proceed onto future ventures, and that they are
financially healthy. Their growth rate is triple compared to the industry average. While they are
reporting significant growth, their net income is lower than the average. Price ratios show that
investors are willing to pay more because they value the future direction the company is headed
towards. The company is in good financial health, they have small debt comparatively and the
cash to pay off short term debts.
Can the firm raise needed short-term capital?
The firm can raise short-term capital, but they already do have short term capital.
Can the firm raise needed long-term capital through debt and/or equity?
The firm can raise needed long-term capital through debt and/or equity through proper
financial budgeting.
Does the firm have sufficient working capital?

The firm has sufficient working capital. In the recent year, they have been able to allocate
resources to other accounts. They have had a rapid increase in net revenue over a 5-year period/
trend. In 2019, Axon reported a revenue of 530.9M, which is an increase from 2016, of 97.9%.
(AXON ENTERPRISE)
Are capital budgeting procedures effective?
The capital budgeting procedures are effective. The rate of Axon’s success in the past
years is incomparable to others in the same industry. They are allocating a large amount of
resources to the R&D department. Some investors think that it is too much, and others stand by
their choice.
Are dividend-payout policies reasonable?
There is no evidence of dividend payouts.
Does the firm have good relations with its investors and stockholders?
The firm has good relations with their investors and stockholders. They are over-
performing currently from the expected forecasting from past years. Their investment into
research and development is something that they are looking for payoff, in this growing market.
Over the past 5 years, their stock has increased from $14.63 per share to $77.37 per share.
(AXON ENTERPRISE)
Are the firm's financial managers experienced and well trained?
Chief Financial Officer, Mr. Jawad A. Ahsan and Chief Revenue Officer, Mr. Joshua M.
Isner have enough educational background and work experience to be in their respective
positions. Their experience will provide the company with the strong financial support needed
for Axon’s financial success. Analyzing the ratios, the company is not using its debt to finance
their new project and are overall, over performing others in the industry.
Competitive Strategies - Grand Strategy Matrix
The Grand Strategy Matrix is a popular tool used for formatting alternative strategies. All
types of organizations can be placed in one of the four quadrants shown.
Rapid Market Growth
Quadrant I
Market Development
Market Penetration
Product Development
Quadrant II Forward Integration
Backward Integration
Horizontal Integration
Related Diversification
Weak Strong
Competitive Competitive
Position Position
Quadrant III Quadrant IV
Slow Market Growth
Firms located in Quadrant I are in an excellent strategic position. Continued
concentration on current markets and products is a good strategy. It is not a smart move for
companies in Quadrant I to move away from their established competitive advantages. Firms in
Quadrant II should evaluate the current approach to the marketplace seriously. In an industry that
is growing, they are not able to compete effectively. Companies in Quadrant III are in slow
growing industries and have weak competitive practices. Those who are in Quadrant IV have a
strong competitive position in a slow growing industry.
Axon is in Quadrant I of the Grand Strategy Matrix. They have been experiencing steady
to rapid growth recently. According to NASDAQ, annual recurring revenue jumped 39% to
$141.5 million in 2019's third quarter (Hoium). With Axon’s acquisitions of competitors, new
marketing tactics such as subscription-based packages and their place in the market, Axon is in
an excellent strategic position.
The Axon Network is composed of smart weapons, cameras and software. The line of
products are always being tested and research to innovate their products is always in motion.
Their cameras range from body worn (on uniform or at an officer’s vantage point), drones,
CCTV, and automatic triggering devices for them. (Axon)
Axon software can be used by virtually anyone. They have developed an app that can be
used by officers and civilians. Securing evidence is easier now, using their “Axon Capture”
feature. Creating software for prosecutors and public defenders makes research easier for them
by having evidence in one single spot. By developing different products that can be of use by the
public and by professionals broadens their reach as a company. (Axon)
Axon just rolled out its virtual reality training named “De-escalation” in 2019, which is
run alongside their mission to protect life. The training equips officers on how to better handle
intense situations which may include citizens who are autistic or who may have a mental illness.
One of the first and largest departments to adopt the training was the Chicago Police Department.
Axon Body 3 was released in 2019 and sold over 60k units at year end. The previous
quarterly record was around 29k units sold. The products Axon is bringing to the market is
changing public safety, creating societal value while saving lives. The new camera platform
supports real-time situational awareness through live video streaming and GPS. (Axon)
Emergency dispatching software is on the way thanks to the Axon Body 3. The software
will be launched sometime in 2020. Axon Records was launched in 2019, in Fresno, California
and Cincinnati, Ohio. The new records software disrupts the current law enforcement software
known as Records Management System (RMS). Typically, officers have to spend a majority of
their time recording incidents whereas Axon’s software writes and delivers most of the report
writing for them. The software puts body camera video and the center of the report writing.
(Axon)
Axon drove the adoption of their “Officer Safety Plan 7”, their highest valued bundle of
taser devices, body cameras and the Axon Network. They sell “OSP7” as a monthly subscription
for a five year period. This way, officers are ensured the latest tools for modern policing because
the plans are paired with automatic hardware upgrades. The software that they provide is based
on their cloud storage so the software is always being updated, making sure officers are at their
most efficient. (Axon)
Axon currently has goals set out for the company that reaches until 2030. Starting now, in
2020, they plan on reaching these goals by investing heavily into the R&D department. Their
current financial strategy is to grow the top line 20% or higher per year. Their goals include that
officers will reach for tasers before firearms, body cameras will virtually eliminate the need for
most manual report writing, cloud and cellular devices will be the primary device for dispatching
officers on the field, and that Axon will be a household name. To reach these goals, they are
currently making the first steps by investing in their research departments and sales channels that
will expand their customer base beyond law enforcement to the federal and corrections markets.
They are investing for growth and even more scale in the software category with their program
known as “Dispatch” which will power 911 call centers. (Axon)
This matrix is a clear visualization of where Axon is at as a company. In Quadrant I,
people can easily see that Axon is in a strong competitive position and I think that it is important
that a clear picture is made. With their dominance in both industries, it is apparent that Axon is in
quadrant I because of their innovation and integration of new technologies and marketing
practices.
Recommendation (Strategy Selection)
QSPM Matrix Strategic Alternatives
STRATEGIC ALTERNATIVES
Facial
Expand training Recognition Expand Globally
Weigh
Key Factors t AS TAS AS TAS AS TAS
Opportunities
Growing number of law
enforcement agencies are going 0.02 - - 4 0.08
"gun-less".
A majority of Americans say
0.1 - - -
gun laws should be stricter.
Majority of states in the U.S.
have no regulations to use Taser 0.01 4 0.04 - -
products.
Currently seven states always
require state law enforcement to 0.05 3 0.15 4 0.2 -
wear body cameras.
Market for non-lethal self-
defense tools are expected to 0.1 4 0.4 - 4 0.4
grow throughout 2025
The global self-defense products

market size was valued at USD
2.4 billion in 2018 and is 0.1 3 0.3 - 4 0.4
expected to expand at a CAGR
of 5.9% from 2019 to 2025.
Government agreements 0.1 2 0.2 4 0.4 -
Threats
Growing divide between police
0.05 2 0.1 1 0.05 -
force and civilians.
Competitors can easily recreate
0.03 - 2 0.06 1
technology. 0.03
Legal issues 0.1 - - -
State regulations 0.1 - 1 0.1 -
Product demand 0.04 1 0.04 4 0.16 3 0.12
Market span 0.1 2 0.2 2 0.2 3 0.3
Civilians medical issues can
0.1 4 0.4 - 1
lead to severe harm or death 0.1
Total 1
Strengths
Successful track record of
integrating complementary
0.1 2 0.2 - 2 0.2
firms through mergers &
acquisition.
Superb Performance in New
0.1 3 0.3 4 0.4 3 0.3
Markets
Reliable suppliers 0.03 3 0.3 2 0.06 1 0.03
High level of customer
0.2 4 0.8 2 0.4 2 0.4
satisfaction
Successful track record of
developing new products – 0.05 3 0.15 3 0.15 4 0.2
product innovation.
Strong Brand Portfolio 0.05 4 0.2 2 0.1 3 0.15
Available training for law
0.05 4 0.2 2 0.1 1 0.05
enforcement
Weaknesses
Limited success outside core
0.02 1 0.02 1 0.02 1
business 0.02
Price of merchandise 0.05 2 0.1 1 0.05 1 0.05
Highly centralized decision
0.05 - - -
making
Little marketing strategies 0.05 1 0.05 1 0.05 1 0.05
10% drop in stock early this
0.1 - - -
year
Suing the United States
0.1 - - -
government
No research in facial
0.05 - 4 0.2 -
recognition
Total 1 3.15 2.2 2.88
Strategic Alternatives
The Qualitative Strategic Planning Matrix (QSPM), objectively determines the
attractiveness of each of the alternative strategies considered. The QSPM evaluates the strengths,
weaknesses, opportunities and threats, and assesses a weight to each factor of the IFE and EFE,
and an attractiveness score (AS) is based on the effect. At the very bottom of the QSPM is the
Total Attractiveness Score (TAS), a sum that determines the most effective strategy to be
represented by the highest number.
Three alternative strategies were used in the QSPM. The three strategies were to expand
training, start research and develop facial recognition software, and to expand further globally.
Each of the alternatives presented do potentially have high returns if implemented correctly.
The first alternative strategy was to expand training. Currently, Axon conducts training
online and in person/ on-site. They instruct via what they named “Axon Academy”. Axon
Academy trains active duty law enforcement, military and selected security professionals. Users
get hands-on weapon training and practical knowledge using subject matter from experts with
years of experience using Axon products and who understand issues that affect officers. They
offer training on all their products from body cameras, tasers, drones, fleet products, Axon
Evidence, and Axon VR. (AXON ENTERPRISE)
My strategy would include training of citizens. Training classes for the public would be
beneficial so users are less likely to get hurt or unintentionally harm others. Creating new
training courses could potentially become a marketing tool for their company. Expanding their
brand association and helping make Axon a household name, like their 2030 goals suggest.
Currently, Axon has multiple apps, most notably Axon View, Axon Capture, and Axon
Device Manager and all are meant for the purpose of aiding officers in the field (Axon). I
propose Axon develop an app specifically meant for training and fast answers for users. If Axon
is planning on expanding in the years to come, it would be beneficial for users to have constant
access to a platform where they can connect with experts.
According to my use of the Markkula Center for Applied Ethics App, this strategy scored
a 98 out of 100. This plan of action is seen as ethically sound because it coincides with Axon’s
mission to “Protect Life”. Expanding training to civilians would only educate the public on how
to use their weapons safely. The products are already in the hands of some civilians and
educating them can proactively protect them and potentially others.
My second alternative strategy was for Axon to expand their research to facial
recognition. Facial recognition technology and software are already in use today in some
departments. If Axon does not capitalize on this software, it will leave an exponential gap where
other companies could capitalize.

According to the New York Times, facial recognition technology is currently used by law
enforcement in some parts of Florida and it aids them in catching suspects they would never be
able to catch or be able to confirm their identity. (Valentino-devries) Officials report using the
system around 4,600 times per month. This system does operate with little oversight and its role
in court has not always been disclosed to the defendants. Cities like San Francisco have banned
the use of such technology on grounds of privacy and mismatches. (Valentino-devries)
Axon has released a press statement from CEO, Rick Smith on where Axon stands with
this kind of technology. In the press release, Smith states that their ethics board deemed it
unethical and the company will not invest time and research into the production of such
technology. In the statement they note that they will not participate in commercializing the
technology “at this time”. If they were to change the direction at any moment, Axon would be
opened to an entirely new market. (Axon)
a 42 out of 100. This alternative strategy is not ethically sound. While it does seem okay to
others (like in Florida), it is widely agreed upon that facial recognition technology is an invasion
of privacy. There is little to no oversight with this kind of technology in the United States also.
Creators of this kind of technology hold information and can do with it what they please, if
wanting to do so. They can also withhold information too, in turn being able to skew results.
My third alternative strategy would be to expand more globally. Currently, Axon has
offices in Washington, Arizona, Vietnam, Finland, Australia, The Netherlands, and the U.K.
80% of Axon’s revenue is from the United States (David). If Axon were to expand further into
foreign markets, there would be a substantial growth in revenue. Expanding training along with
marketing products to law enforcement agencies would also increase brand association.
There is little information on how expansive training is incorporated into other countries'
planning in terms of expansion and sales but adapting training to fit other countries' laws would
push subscription based packages more to law enforcement agencies.
a 95 out of 100. This alternative is ethically sound because it spreads Axon’s mission to “Protect
Life” around the globe. Expanding would keep more people safe and would help officers in the
future.
Recommendation
The strategic alternative with the greatest Total Attractiveness Score is the
implementation of expanding training programs to include civilians. This alternative holds the
highest Total Attractiveness Score, as well as helps to cover many of the factors that were
brought forth in the SWOT, IFE and EFE matrices.
Developing a more extensive training program for civilians would help Axon gain
additional market share in a market that has been almost left untapped. Axon will have to use
new marketing techniques to reach these consumers.
Expanding their “Axon Academy” programs will maximize the cost savings as well as
overall earnings. This will only add to Axon’s working capital to help aid them in obtaining their
enhanced 2030 goals. Developing and implementing a plan like this could potentially help the
United States reduce firearm related deaths by increasing the popularity of nonlethal weapons.
Implementation Plan
Axon will have to have a strong implementation plan in place to expand their training
programs to include civilians. Communication between training coordinators, the marketing
department, distributors, and many other departments will have to have numerous meetings to
develop new training and marketing plans to get out to consumers. Meetings will be started in
Arizona where the Axon headquarters are located. Starting with upper management and working
with departments to get projects underway. This way, employees will be on board and will
acknowledge that this undergoing runs in line with what the company stands for.
With Axon’s working capital in mind, this strategy should not be detrimental to the
company’s resources. Starting in the research and development department, research will have to
be done on the total popularity of tasers in the hands of civilians and how prone accidents are to
happen when not properly trained. Research on what is out there currently in terms of training
availability across the U.S. needs to be done also.
After research is done on what the current scope of tasers are used in the public, meetings
with marketing and professionals will have to undergo for how to properly train civilians and
what materials are best understood and retained will have to be inspected.
Marketing along with other departments will have to develop training plans to send to
distributors and law enforcement so training can get underway. Starting with select cities,
training can start to see how people react. The courses will be based off of already made training
programs Axon uses on law enforcement. Putting law enforcement jargon into layman's terms.
Executives:
● Present clear objectives to employees with reminders of the company’s mission
statement, have open lines of communication, making sure employees are on board for
the company’s new venture and fully understand the tasks, goals that are involved.
● Clear understanding and development of timeline and budget as the project goes head.
Keep other upper management up to date with updates.
Finance:
● Understand what resources are needed to complete this new project.
● Maintain financial progression while implementation of the project is underway.
Marketing:
● Reach out to departments that Axon is already in contact with to see if there is an interest
in community training on Axon weapons.
● Conduct research to see where Axon products are most used with civilians.
● Develop marketing strategies and develop training sessions for civilians to attend.
● Create marketing materials for departments to use when training is underway.
Research and Development:
● Research states and laws pertaining to Axon products.
● Work with the Marketing department to develop a training day schedule and overview of
what it will contain.
Working together, Research and Development and the Marketing department will be in
charge of the project. Marketing will start by reaching out to law enforcement departments that
they are already working with to hold training sessions.
When civilians purchase an Axon product, they will be notified via email and mail on
training sessions near them so they can be educated on how to properly handle their nonlethal
weapons. Training will cost users $65 for the session. Axon will give training materials to
departments so they can lead training sessions. In the first year, Axon will hold 30 training
sessions. Costing a baseline of $10,000 per event will have a total cost $300,000 just for the
sessions. Marketing worldwide for these events will incur a larger expense with a total of $15
million.
Financing
There are three alternatives for Axon to choose from to raise capital: debt, equity or a
combination of debt and equity. To consider the financing options of developing more training
to include civilians, the following assumptions have been made in the EPS/EBIT analysis:
● Required Amount: $15 million
● Interest Rate: 5%
● Tax Rate: 66.9%
● Stock Price: $74.41per share
● # of Shares Outstanding: 58.53 M
EPS/ EBIT Analysis
Common Stock Financing Debt Financing

Recession Normal Boom Recession Normal Boom
EBIT 1,000 2,500 5,000 1,000 2,500 5,000
Interest - - - 0.75 0.75 0.75
EBT 1,000 2,500 5,000 999 2,499 4,999
Taxes 50 125 250 49.9625 124.9625 249.9625
EAT 950 2,375 4,750 949 2,374 4,749
Shares 58.73 58.73 58.73 58.53 58.53 58.53
EPS 16.18 40.44 80.88 16.22 40.57 81.14
70% Stock - 30% Debt 30% Stock - 30% Debt

Recession Normal Boom Recession Normal Boom
EBIT 1,000 2,500 5,000 1,000 2,500 5,000
Interest 2.25 2.25 2.25 4.25 4.25 4.25
EBT 998 2,498 4,998 996 2,496 4,996
Taxes 49.8875 124.8875 249.8875 49.7875 124.7875 249.7875
EAT 948 2,373 4,748 946 2,371 4,746
Shares 58.67 58.67 58.67 58.59 58.59 58.59
EPS 16.16 40.44 80.92 16.15 40.47 81.00
The EPS/ EBIT Analysis shows that in a recession, normal, and in a booming economic
condition, Axon should use debt financing.
Projected Financial Statement
AXON ENTERPRISE, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE
INCOME
(in thousands, except per share data)
For the Years Ended December 31,

2019 2018 2017 2016
Net sales from products $ 387,635 $ 327,635 $ 285,859 $ 238,573
Net sales from services 110,833 92,433 57,939 28,672
Net sales 498,468 420,068 343,798 268,245
Cost of product sales 167,203 139,337 117,997 91,536
Cost of service sales 26,548 22,148 18,713 6,173
Cost of sales 193,751 161,485 136,710 97,709
Gross margin 304,717 258,583 207,088 170,536
Sales, general and administrative 188,263 156,886 138,692 108,076
Research and development 92,056 76,856 55,373 30,609
Total operating expenses 280,319 233,742 194,065 138,685
Income from operations 24,398 24,841 13,023 31,851
Interest and other income (expense),
net 4,621 3,263 2,738 -354
Income before provision for income
taxes 29,019 28,104 15,761 31,497
Provision (benefit) for income taxes -3,067 -1,101 10,554 14,200
Net income $ 32,086 $ 29,205 $ 5,207 $ 17,297
Net income per share:
Basic $ 0.62 $ 0.52 $ 0.10 $ 0.32
Diluted $ 0.60 $ 0.50 $ 0.10 $ 0.32

Weighted average shares
outstanding:
Basic 58,283 56,392 52,726 52,667
Diluted 59,593 57,922 53,898 53,536
Net income $ 32,086 $ 29,205 $ 5,207 $ 17,297

Foreign currency translation
adjustments -32 -46 -2,370 820
Comprehensive income $ 32,054 $ 29,159 $ 2,837 $ 18,117
In the pro forma Income Statement shows data from the last three years and the projected
next year. Reflected is a 14% growth in income due to the suggested strategy of expanding
training and also from other measures Axon has laid out to continue its growth.
Conclusion
In conclusion, Axon’s (formerly known as Taser International) suggested strategy is to
expand training to fit civilians. Implementing a strong marketing plan and working with law
enforcement agencies will allow Axon to grow through a newer market. This also makes sure
Axon stays at the top where they currently are. With Axon’s continued and projected growth,
there is no reason as to why Axon should not prosper in the future.

References
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Running head: TASER INTERNATIONAL 1

Taser International (Axon) Case Study

Siena Heights University

market with new services, Axon is prospering financially.

Axon currently does not have a vision statement.

Axon’s mission statement is as follows: “The priorities and challenges of law

Mission Table Evaluation

Table 1 Mission Table Evaluation Matrix

Concern for Concern for

were added, it would then be enhanced.

handheld stun devices, training cartridges, batteries, etc.

private security business.

Technology is mentioned in the mission statement. The company is technology current,

their products are constantly changing with innovation.

Philosophy is mentioned in the mission statement. “Protect Life” is their condensed

on the other end, Axon is dedicated to justice.

Self-concept is mentioned in the mission statement. Axon’s major competitive advantage

electronically controlled taser device.

the first Taser product was used by an officer. (David)

cameras were able to upload their footage to an online cloud on evidence.com.

Axon is working with states to pass body cam laws.

● In 2009, Sebastian County in Arkansas, a prosecuting attorney used the first

charges. (How Police).

death or a serious injury.(AXON)

with VIEVU’s subsidiaries, they made partnerships to aid in the production of

both their products. (Axon Acquires)

as a failure in technology. By integrating Axon AI, they believe by improving

their fields and with continued innovation they will grow.

same types of consumers.

Growing number of law enforcement agencies are

another form of self-defense.

the regulations against them.

industry and is constantly looking for ways to improve.

6 Strong Brand Portfolio 0.05 4 0.2

to others in the industry.

because the government is one of their biggest customers.

competitive in that aspect.

monopolizing on this market that Axon could dominate.

product demand and their market span.

consideration, it could potentially be detrimental to the company.

have to beat others to new innovation to stay at the top.

Porter’s Five Forces Analysis

Potential Development of Substitute Products

Rivalry Among Competing Firms

to court to deny claims against antitrust laws.

MACE Security International and PepperBall Technologies are competitors in non-lethal

lethal weapons market.

makes it hard to focus on one specific kind.

features compared to ours” (Digital).

Potential Entry of New Competitors

currently a leader in the industry and is beating out its competitors.

Bargaining Power of Consumers

decisions that are made by businesses to attract a customer’s business.

firearms, then there is little bargaining power.

competitive price that Axon offers.

Bargaining Power of Suppliers

Revenue $530.86M EBITDA $7.21M

Net Income $882.00K Return on Capital % 0.11

Enterprise Value $4.08B Book Value/ Share $13.84

Net Profit Margin % 0.17 Shares Outstanding 59.53M

PEG Ratio -106.81 Last Split Factor (Date) 2:1 (11/30/04)

BETA 0.84 Last Dividend (Ex-Date) n/a

Forward P/E 59.97

GROWTH RATE % COMPANY INDUSTRY