Running Head: AXON TEAM EXECUTIVE SUMMARY 1

Axon Enterprise, Inc. Executive Summary

Dismary Munoz-Castillo, Andrew Lundin, Megan McCartney, & Kimberly Ross

Siena Heights University

BAM 479 – Strategic Management

March 27, 2020

Case Statement
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While remaining a leader in its highly competitive industry, Axon Enterprise, Inc. offers

a mix of products and services that no other company can match.  This organization has great

potential for growth but also faces varying challenges such as substitute product offerings and

cybersecurity threats.

Mission and Vision Evaluation

Axon does an excellent job of including eight of what David & David consider the

essential nine mission statement components (2016).  One component which is lacking is Axon's

employees, who are not explicitly mentioned. The overall efficacy of Axon's mission statement

is very strong. Given the nature of this statement, one can surmise the firm's employees are

among those lives of which Axon seeks to protect and, therefore, are highly esteemed. The firm

does not have an official vision statement. However, the company website provides the

following indication of Axon's value system: "Our vision is bigger than just cameras or weapons.

We're working every day to make the bullet obsolete" (Axon, 2019).

Milestones

A few of the organization's major milestones that influenced it to become what it is today

are as follows:

 1993 - Inception of Air TASER, Inc. Rick Smith & Jack Cover completed the

development of the first CEW.

 1999 - First law enforcement agency in the US signs up for TASER M26 devices. 

 2012-2014 - TASER introduces Flex Cameras & EVIDENCE.com (respectively)

 2020 - Axon launches web and mobile applications to live-stream videos directly from its

drones into EVIDENCE.com.

External Assessment
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A few important external factors include little domestic competition for various types of

products sold and massive investment and brand loyalty among police and military units.

Another compelling factor is the firm's strong push to focus product marketing and sales in

global regions that could benefit from using these products the most. Axon stands in a good

position above its peers domestically in both civilian and policing markets, which the company

should look to capitalize on and expand.

Internal Assessment

Some areas of strength for Axon include the name recognition of its products such as

Taser, significant popularity, and deals with various police and governmental organizations, a

broad and diverse array of products, and a heavy focus on continual R&D. By relatively recently

changing its name to Axon, the company can now more reliably diversify into other products

without remaining typecast into a single area. On the other hand, a huge list of expenses,

primarily R&D, impacts the firm's earnings.  While Axon brings in high revenues, its profits are

low, and reliant on sales from the United States. 

Industry Analysis

The Porter Five Forces Model is a method used to determine what, if any, advantages or

disadvantages a company may have against competing firms in the same industry. As the current

market stands within North America, Axon holds a strong and relatively stable position of power

over its competition, boasting a significantly stronger market presence and ability to reach

consumers. Overall, sales on most Axon products have demonstrated an upward trend, but only

in single-digit growth, thereby limiting the given potential for newcomers to enter the industry as

serious competition. Given this fact and Axon's ability to manufacture its product lines, Axon

holds a great deal of control over its supplier backing and control, enabling it to make quick
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decisions regarding the supply chain, determine costs, and influence pricing.  However, given the

volatility of the market as far as laws, regulations, and customs in various countries and regions

go, Axon has reduced power concerning its buyers. This is because of a long list of alternative

products offered by competitors, the bargaining power of law agencies and governments, and the

potential of legal issues that may arise out of establishing a presence in a market with differing

laws and requirements. All of these potentially present a hazard that must be kept track of

deliberately. This list of alternative products also presents a liable threat of substitution. Other

personal defense items such as pepper spray, flashlights, and certain applications can be

marketed towards the same demographic groups as Axon, thereby saturating the market with

very different, non-Axon products.

Financial Analysis 

Axon has experienced exponential revenue increases over the last few years.  However,

its earnings do not reflect this same growth, as these have dropped in an increasingly drastic

fashion as well. The firm's solvency is one of the most substantial areas of Axon Enterprise.

Currently, the organization has no long-term debt, so that also plays in its favor.  Also, the

company has been successful in managing its inventory. However, the increase of its Research

and Development expenses, as well as other operating costs Axon incurred last year, debilitated

the company's net income, return on assets, and return on equity.

Alternative Strategies

The first strategic alternative presented is for Axon to look to expand internationally into

untapped markets, with a particular focus on both European and Asian markets.  Secondly, the

firm should work to eliminate online cloud hacking threats by increasing cybersecurity and

advancing its software and network platforms.   Lastly, Axon could further penetrate the US law
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enforcement market with its new product offerings such as the Axon Air drones or Axon Fleet.

In conjunction with this, the firm should be soliciting its Evidence for Prosecutors and Evidence

for Public Defenders in those same municipalities, so each branch is working succinctly. 

Recommended Strategy 

After careful consideration and evaluation of the Qualitative Strategic Planning Matrix

(QSPM), the decision for strategy selection fell to the continued refinement and product

integration into currently expanding domestic markets, with the potential to develop and sell

products overseas in the future.  This strategy was a natural choice given Axon's already relative

dominance of the United States CEW market as well as its friendly relationships with both police

agencies and government forces. These factors, as well as Axon's unique position among

industry competitors, mean several beneficial opportunities for growth, particularly within the

Southwest United States, exist.  By expanding into new domestic markets, Axon will be in a

much better position relative to its competition, as well as bring its line of products to clients and

customers both in the public and private sectors. 

Ethical and Social Responsibility Dimensions of the Recommended Strategy 

The main utility Axon's products and services offer are of utmost importance in the

implementation of this strategy abroad.  This organization has an expressly acknowledged social

responsibility to and for the safety of both private citizens and law enforcement officers. By

adopting the motto "Protect Life," Axon has made a sincere, deliberate effort to resolve conflict

peacefully. In doing so, the firm also ensures the safety and security of the agencies who use its

products and suspects whose lives may be saved through the conflict de-escalation that Axon is

proud to provide. 

Implementation Plan
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Current strategy implementation revolves around focused efforts on further direct market

penetration domestically within North America, given Axon's already considerable presence and

the relative share of the market. Efforts will be doubled to bring both civilian and law

enforcement lines of products to regions, including the Southwest and Pacific Northwest United

States regions, with a particular interest in expanding partnerships with police and government

forces in those regions. Initial plans will involve trial runs on select product lines with police

agencies with the direct goal of forming partnerships and establishing a more significant local

presence in these communities as both crime deterrents for civilian usage and law enforcement

equipment for both local and governmental offices. This strategy will require a debt-financed

sum of approximately $75 million, with the projected timeline of development being within two

calendar years.