Business leaders, whatever their industry, become so mired in day-to-day demands of managing their business that they often fail to see opportunities not just outside their industry boundaries but inside as well. Revenue and profits suffer as a result. The gun industry is a case in point. The percent of US households owning a gun is has been declining for decades with ownership among younger demographics falling the most. Purchases by existing gun owners, which accelerated post Obama’s election, drive gun manufacturers’ revenue growth. This demand pattern is not sustainable as a revenue engine. Ownership will likely continue to decline owing to demographics as fewer young people hunt today than in the past. And at some point, the marginal benefit from an additional gun purchase drops below the cost of purchasing yet another gun. On the surface, therefore, it makes sense that the…
