ENT670 – Competitive Analysis

Stronghold Armory Indoor Gun Range Competitive Analysis

•          Description

Stronghold Armory is to be a full-service gun range offering state of the art shooting experience and Federal Firearms License (FFL) brokering. Stronghold Armory will have ten fully automated and well-ventilated firing lanes that will accommodate almost all handguns, rifles, and shotguns. Stronghold armory carries a wide selection of ammunition and gun-related accessories in a variety of models, types, and calibers. The lobby and rest area offer customers, that want to spectate, a view of the firing lanes with ample seating and flatscreen TVs.

Industry Analysis

•          Current Size

The national shooting range industry has 11,741 businesses as of December 2020. This number includes both indoor and outdoor shooting ranges. Due to costs, the number of outdoor ranges far exceeds more than 90% of the industry.

•          Growth Potential

The indoor shooting range industry has shown growth over the last five years. Growth is limited to the increasing competition from other forms of leisure activities. However, even with the industry has steady growth with projections to maintain the current trajectory. As the economy has been rebounding from the COVID-19 pandemic, more consumers will be able to enjoy in sporting good activities such as shooting.  

•          Industry Trends

The indoor shooting range industry has a high cost to entry that has kept the competitive environment low.  With limited threats, successful indoor ranges can not only secure new customers but maintain established customers over long periods.

•          New Developments

The indoor shooting range industry is an established industry with limited new developments in technology. While there are newer models, an established range in not facing major changes for the foreseeable future.

•          Seasonality

Does seasonality affect your sales and if so, how? What is the average profit for businesses in the industry? In what area of the country are most businesses in your industry located?

•          Geographic Locations

Stronghold Armory is in a local market within the industry. There is room for limited expansion on a five-year timetable.

•          Suppliers

The vast number of manufactures of ammunition allows for diverse supplier options. Stronghold Armory has the advantage of a large selection of ammunition distributors.

•          Sales Channels

The indoor firing range industry’s major product is the rental of firing lanes. Customers rent the firing lanes direct from the business. The business buys the supplies from a distributor for most products. There are options to buy from the manufactures, but with the vastness of the manufactures this practice is not cost effective.

•          Basis of Competition

The largest factor for opportunity in the firing range industry is the local competition. Currently there are no direct local competitors. The quality of amenities over indirect competitor will allow for a large portion of the market share to be secured in a short amount of time.

•          Other Characteristics

The factor that makes the indoor firing range a less attractive industry to enter is the cost of startup. The cost of entry is the cause of a lack of competition but causes a longer period of time to break even.

Competitive Environment Analysis

Stronghold Armory will be using a differentiation strategy as the long term planning strategy. By using a differentiation strategy, Stronghold Armory can promote the products and services that are unique in the local marketplace.

In the local market place for firing ranges, there are two established competitors;  Sierra Vista Shooting Range and Fort Huachuca Sportsman’s Center. These two firing ranges are competitors in the sense that they offer services allowing for firearm owners to shoot their weapons on their ranges, but there are many factors that separate Stronghold Armory from the competitors.  

The Sierra Vista Shooting Range (SVSR) is a traditional outdoor firing range with earthen backstops located outside of Sierra Vista. SVSR offers different ranges for handguns and rifles. Each range at SVSR has an overhead canopy to protect shooters from sun and rain. SVSR has a classroom for rent in their facility that is also used as an indoor lounge during inclement weather. SVSR does not sell or rent any products associated with firearms and states that customers need to bring their ammunition, targets, and firearms. Customers are also encouraged to bring their food items as none are sold. SVSR has three different hour formats for business days; (Sunday, Tuesday, Saturday 8 AM-5 PM), (Wednesday, Friday 12-5 PM), and (Monday and Thursday closed).

The Fort Huachuca Sportsman’s Center is a traditional military outdoor shooting located on the Fort Huachuca U.S. Army military installation. The Sportsman’s Center has a range for handguns (range #3), rifles (range #4), and an additional skeet shooting range behind the Sportsman’s Center complex. The handgun range has an overhead canopy, while the rifle and skeet ranges do not. The rifle and handgun ranges are not co-located to the Sportsman’s Center complex, there is no running water at these locations and there are only porta-john restrooms.  The Sportsman’s Center rents outdoor equipment, snacks, and beverages, but does not sell or rent ammunition, targets, and firearms. The Sportsman’s Center is open Saturday and Sunday 9 AM-5 PM. Special Notes: all personnel wishing to gain access to Fort Huachuca must have a Department of Defense ID or  Visitor Pass,  All firearms must be registered with the military provost marshal before entering the military installation, All firearms must be unloaded and secured while not on the range.

Stronghold Armory Indoor Range is an indoor range located in Sierra Vista. Stronghold Armory will have ten fully automated and well-ventilated firing lanes that will accommodate almost all handguns, rifles, and shotguns. Stronghold armory carries a wide selection of ammunition and gun-related accessories in a variety of models, types, and calibers. The lobby and rest area offer customers, that want to spectate, a view of the firing lanes with ample seating and flat screen TVs.

Competitor OverviewStronghold Armory Indoor RangeSierra Vista Shooting RangeFort Huachuca Sportsman’s Center
LocationSierra VistaSierra VistaFort Huachuca – military access pass required
AmenitiesClimate control building, Restrooms, Classroom, Lobby, and LoungeOutdoor Area, Classroom, and RestroomsOutdoor Area and Porta Johns
ProductsPersonal Protective Equipment, Ammunition, Targets, and Snack barNoneNone
ServicesLane Rental, Gun Rental, Classes, and CoachingLane RentalLane Rental
HoursMonday through Sunday 9 AM-8 PMSunday, Tuesday, Saturday 8 AM-5 PM Wednesday, Friday 12-5 PM Monday and Thursday closedSaturday and Sunday 9 AM-5 PM
PriceHigherLow with MembershipLow

Stronghold armory is using a differentiation strategy because the competitors will always be able to offer their services for a lower price. Their lower price is their advantage and there is nothing at this time to combat it. There is a large segment of firearm owners in the area that are looking for the services and amenities that Stronghold Armory is offering and will be loyal customers due to meeting these desires.

https://www.iedunote.com/competitive-strategy

https://www.thestreet.com/personal-finance/education/what-is-competitive-advantage-14869235

https://www.marketsandmarkets.com/Market-Reports/shooting-ranges-market-138688111.html

https://www.ibisworld.com/united-states/market-research-reports/shooting-ranges-industry/

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