Case Study : Air Gun Case

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Air Gun Case
Situation Analysis: Airgun Products, Inc. (API) is an air gun retailer that mainly sells directly to consumers. We sold our products through our catalog-based phone order sales channel from 1989 to the mid-1990s. In 1995, we decided to take our sales to the internet and created a website. Our product mix included air rifles, pistols, scopes, mounts, pellets, targets, accessories, and other air gun-related items. The air guns we sell either fire steel or lead BB’s or plastic pellets, which we sell both the firearm and ammunition. Although we have a vast range of 47 different suppliers, we like to conduct business with well-known, reputable firearm suppliers such as Beretta, Crosman, Smith & Wesson, and Winchester. We have accomplished to build great relationships with these credible suppliers by making sure to pay our payables on time. In the beginning of our operations, we only had one employee, as we operated out of my basement for the first year. Within the next couple of years, we had to make the addition of phone sales representatives to accommodate our growing customer base. By 2003, we reached 10 full-time employees and 2 part-time employees who helped run our day to day operations. In order to increase our sales even further, we hired a marketing manager to help obtain more customers for our products through tactical advertisement. We were growing at a stable rate and continued to generate good streams of revenue, which led to the increase in our
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