Situation analysis You are the primary decision-maker in the case. What are your objectives? What are the relevant facts from the case? What decisions/problems/opportunities must you face? As the primary decision-maker in the case, it will my duty to first take stock of the present situation in terms of the strengths of Airgun Products, Inc. (API) and the current challenges it faces concerning maintaining its market share and furthering the growth of the company in terms of revenues and profitability. To bring about such improvements it will be imperative to steadily remove the inherent weaknesses that have arisen due to the developments taking place as a consequence of the new strategies introduced by API’s competitors. Notice will also have to be taken of the increasing competition emanating from e-commerce and of the propensity of a larger number of customers preferring to purchase air guns and air gun-related products via the internet. Although in the five years, commencing from 1989 when the company began its modest operations, API has made significant strides in terms of business growth and market share, a lot still needs to be done to survive in a competitive environment that is consistently increasing not only from within the country but also from manufacturers in other countries. The market for air guns is considered to be a niche in the sense that the customers primarily comprise field shooters competition shooters, target shooters, and hunters. People use air guns now more as a hobby than to fulfill essential requirements. Of a total estimated market that is worth $51 million in the US, API accounts for about $1.2 million which is not much of a market share. There is hence a need for the company to fasten its seat belts and do something extraordinary if it is to survive in the constantly increasing competitive environment. The company has to effectively counter the competition emanating from its four major competitors in introducing new strategies to woo the customer. The customer segment for air guns is fairly flexible in patronizing the company that will offer them the best prices and after-sales service. Hence there is a strong need to tap the customer base most effectively. Recent trends, especially in this market segment have indicated increasing preferences of customers to buy directly from the company websites in paying through credit cards. Although API’s sales figures have been increasing steadily over the past few years the company has to improve overall profitability. The biggest challenge for the company is to make a success out of its e-commerce initiatives especially in the face of several such efforts having failed for other companies. The challenge requires the company to transform itself from a catalog-based phone sales company into a triumphant online sales and catalog company. Issues have to be identified that are pertinent to improve the profitability of the company and decisions taken about the management of the organization; whether the present owner and a single manager should continue to assume the leadership and decision making roles or there should be a shift in the management strategy by changing the organizational structure. In 2004, the company realized that to increase sales it needs to make the best use of its online