Ruger is one of the largest domestic gun and ammunition manufacturers in the United States, and also one of the most successful. Ruger makes very high quality guns at reasonable prices. The company also emphasizes research and development. With no debt and high gross profit margins, one would expect Ruger to be an outstanding investment. However, the U.S. gun industry is extremely volatile and also very competitive. Due to mass shootings, terrorism, and other highly visible events, there is ever increasing pressure for new regulation and restrictions on gun ownership and use. However, the industry has a very powerful friend in the National Rifle Association.
Copyright © 2018 Jeffrey S. Harrison. This case study first appeared in the Robins Case Network, 2018.
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Eryn Berquist, Julian Cha, Jeffrey S. Harrison, Kelsey Heady, Lindsay Kennedy, Will Macllwiane, Bikram Saini, Natalie Schmidt, and Jason Werst. Sturm, Ruger & Co and the U.S. Firearms Industry. Case Study. University of Richmond: Robins School of Business, 2018.