Smith & Wesson SWOT and PESTLE Analysis

Strength

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Weakness

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Opportunity

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Threat

3. Vulnerability to public perception on gun violence: The company may face a significant threat due to public perception of gun violence. In the United States, more and more people consider gun violence a major problem, with 62% expecting it to increase over the next five years. A majority of Americans also believe it is too easy to legally obtain a gun, with 58% supporting stricter gun laws. Additionally, concerns about gun violence in schools are prevalent among parents. Gun violence is a leading cause of premature death, with over 48,000 Americans dying from guns in 2021. This perception of gun violence as a public health emergency may put the company at risk. To address this threat, the company must consider the changing public sentiment around guns and gun violence, focusing on responsible gun ownership, safety measures, and addressing the broader public health aspects of the issue to maintain its reputation and market position.

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Political

1. The ban on large capacity magazines in 11 states may reduce demand & impact sales: The ban on large capacity magazines in 11 states aims to reduce the harm caused by mass shootings. For Smith & Wesson, a prominent manufacturer of firearms and related products, this banning large capacity magazines can have an impact on their sales. As these bans restrict the sale and possession of such magazines in specific states, it directly affects the demand for firearms that are compatible with these magazines. Since the company produces firearms that may use large capacity magazines, the reduced demand for these magazines can lead to a decrease in sales for their products in the affected states. To mitigate the impact, it could explore diversifying their product offerings by focusing on firearms that comply with the magazine capacity restrictions or by promoting alternative accessories that align with the regulations in those states.

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Economic

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Social

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Technological

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Legal

1. Influencer marketing practices allegedly violated FTCA, which resulted in penalties & reputation loss: The complaint against Smith & Wesson highlights the impact of their advertising in relation to the Parkland shooting and the Kenosha shooting. The investigation suggests that the company targets young men and falsely links their weapons to the military and law enforcement, giving the impression that these organizations endorse or use their rifles. This deceptive marketing allegedly exploits vulnerable individuals, especially teenagers and young men, leading to harm to innocent people. Furthermore, the complaint reveals that the firm engages social media influencers to promote their firearms. However, many of these influencer posts lack proper disclosure about their connection with the company, violating guidelines for endorsements. There were damaging consequences of marketing rifles to young men, as several major shootings involved the use of this brands’ rifles. The company's misleading marketing increases the risk of young men obtaining their products and committing acts of violence. As a result, the company faced penalties and damage to its reputation in the industry.

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Environmental

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