Home Security Market in the Term Paper
- Length: 7 pages
- Subject: Criminal Justice
- Type: Term Paper
- Paper: #38554832
Excerpt from Term Paper :
According to the same source, the Australian market proves to be very fertile for the U.S. companies which already account for the greatest import share (over 50% in 2004). Such data are outlined by the following table:
Total market (million of dollars)
Total imports (million of dollars)
Imports from U.S. (million of dollars)
2002 2004%Change 2002-2004%Change 2002-2004%Change Australia 950-1400 47% 380-560 47% 185-285 54% 51% Source: http://www.buyusainfo.net/docs/x_4239321.pdf.
The U.S. home security market is another outlet offering promising perspectives. According to Frost & Sullivan's report (http://www.researchandmarkets.com/reportinfo.asp?report_id=365296),one of the levers responsible for increased demand is the emergence of new homes as a result of the low interest rate. The U.S. Census Bureau studies showed that, in 2002, 1.7 million new houses were built in comparison with 2001 when 1.6 million new constructions were made. Moreover, the number was expected to grow in the near future.
Other reasons for a security market boost are terrorist attacks and the alarming statistics revealed by FBI, the U.S. Bureau of Justice, and Uniform Crime Report which have concluded that 75% of the total crime is represented by the property crime rate. Additionally, 2001 was the first year which brought an increase in the number of burglaries and thefts out of which 85% were successful. Studies emphasized that such events wouldn't have come off if houses had been protected by an elementary alarm system. On the other hand, the price decline caused by high-tech innovations and lower production costs has made products affordable to middle and lower-middle classes (http://www.researchandmarkets.com/reportinfo.asp?report_id=365296).
Yet, the report drawn out by Parks Associates in 2006 emphasized that the U.S. home security market reached maturation and this made the 18,000 dealers delve into new opportunities. Despite such findings which throw a negative hue on the residential segment, forecasts continue to be optimistic. Thus, the predicted annual industry growth through 2020 swings between 10% and 15%, while the demand for security products will have an upward trend due to the random nature of crime which is stronger than the average crime rate which is said to have declined (svconline.com/resav/hitech_home_security_06192006).
Another opportunity is the fact that the U.S. government is still at the beginning of the security implementation process. Authorities have announced resorting to private entities for protecting the critical infrastructure (railways, ports, airports etc.) (http://www.siaonline.org/news/overview.cfm).
In what biometrics is concerned, the U.S.A. has recently applied this technology to immigrants. Although the technique has been formerly used for criminals, nowadays it is also used for foreigners looking for a job as these are compelled to communicate their fingerprints first (http://en.wikipedia.org/wiki/Biometric).
In conclusion, the U.S.A. remains a prolific outlet for security providers as terrorist attacks and property crime continue to be two major threats. In addition to these, the concept of biometrics have been already introduced and advertised at a high scale. George W. Bush himself touched upon this issue when delivering his speech from the Oval Office, on May 15, 2006 (http://en.wikipedia.org/wiki/Biometric).Therefore, as most Americans are accustomed to the concept, Sequiam may state that the same technique that U.S. authorities have implemented in airports, stations and other key check-in points will be available for protecting households. Moreover, the low price of $199 and the product's trial operated by Fortune 50 companies will certainly give demand an upward trend.
In what the foreign markets are concerned -Finland and Australia, one could easily infer that these are not equally attractive.
At present, Finland wouldn't be a pertinent solution for Sequiem's international extension as security doesn't represent one of the population's top priorities. On the other hand, Finland is neither actively involved in fighting against terrorism like U.S., U.K, or Australia, nor directly affected by terrorist attacks. Thus, the insecure climate exists but it is not as overwhelming as in other countries. Secondly, the security sector is dominated by a sum of large companies which already have a strong tradition and recognition among Finnish consumers. Thirdly, the main end-users are large companies or public sectors while private households represent an insignificant share. Moreover, traditional methods like guards and alarm systems are preferred. This implies spending huge sums of money on campaigns advertising biometric principles and their benefits. In conclusion, Finland is not ready yet for embracing the Sequiam Biometric Fingerprint Door Lock.
The situation is totally different when commuting the focus on the Australian market. Unlike Finnish, Australians are more aware of the terrorist tentacles' reach and of the high quotes attributed to fraud and burglary. One could argue that they prefer traditional methods, too, but this argument melts when being confronted with the Australians' desire to upgrade security systems, a desire which is almost exclusively hindered by high prices. Therefore, the low price at which Sequiem sells its product may gain an impressive market share, in a short period of time. Additionally, Australians are quite familiar to biometrics as this is already used in several sectors. Consequently, presenting the innovation and its cheap price could make the population rave about the new door lock. Another plus recommending the Australian market is the reputation that U.S. security companies already have. The 50% share of the total imports excellently emphasize that buyers are confident in the American products' efficiency and effectiveness.
In terms of strategies, if one looks at the six possible alternatives - franchising, licensing, turnkey projects, joint ventures, establishing subsidiaries abroad, and exporting, the latter could be the most viable for the time being because it allows testing the market and observing the effects of the newly introduced product. Afterwards, according to demand, Sequiem may decide franchising the concept or setting out its own Australian subsidiaries.
To sum up, I'd say that while Finland is put on hold, the U.S.A. And Australia are two major debouches that Sequiem may successfully explore.
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