As the coronavirus continues to cause major upheaval for small business, some large businesses are faring much better, having the resources available to adapt to this major, sudden change.
Scottsdale-based Axon, makers of tasers and body camera equipment for law enforcement, reports an increase in business over the last several weeks.
"Because we make technology and equipment for first responders, in fact, they still need our capabilities," said CEO Rick Smith.
Smith said Axon took a major hit when the trade war with China started and since then, the company has diversified its supply chain and now sources parts from all over the world.
"So far, we've been able to balance our supply chain so that we've not hit much of a disruption. If you can adapt from this, you can emerge, not just back where you were but a heck of lot stronger," he said.
Last Thursday, Axon announced a partnership with the National Police Foundation. The company will spend $1 million and match up to $500,000 from community donations on personal protective equipment for first responders. One hundred percent of funds will go directly toward helping reduce first responder exposure to COVID-19 by purchasing medical masks, gloves and hand sanitizer.
Axon is also offering a short-term discount of sorts to its customers, by not charging police agencies any fee to use its digital evidence collection platform. Smith says it's an effort to help officers limit exposure to COVID-19.
Some of the proprietary technology that Axon uses in its platforms has been the subject of several lawsuits over the last several years by would-be competitor Vievu, which Axon now owns.
In 2018, Axon Enterprise purchased Vievu but in January the Federal Trade Commission said the investigated the merger and then ordered the company to divest certain assets to restore equity to the marketplace saying the combined company is too large to allow for fair competition.
Axon then sued the FTC, saying the acquisition doesn’t qualify as an antitrust violation and the ruling was unconstitutional.
“The company was a failing firm, meaning they were on the edge of insolvency, so it’s my understanding that if you buy a failing firm, by definition, it’s not anti-competitive," said Smith.
Last week, a federal court threw out Axon's suit. Axon claimed the FTC’s ability to both prosecute and judge cases deprives companies of their constitutional rights. The judge said while Axon's suit raises a "significant and topical" issue, a federal district court is not the right place to hear it.
