Competitive Intelligence Analysis

Home Security Inc.

Home Security Inc. is a successful firm that has dominated the security device market since its inception. This accomplishment has been made possible by the company's dominant market position, which accounts for more than 85% of the market. Yet, this advantage is under peril. The threat is posed by TVI, a company that has provided Optical Character Recognition systems to various state departments across the United States. An in-depth examination of their trends and internal structures reveals that the company intends to enter the security recording device market. This would subsequently cause the company to lose market share to TVI. Below is a strategic analysis that will be useful to decide on how to manage the situation.

TVI Profile Analysis

TVI Company is a successful company that deals with proprietary scanning devices that are used to scan passports and visas. The firm controls ninety percent of this market. It also has been in the business of consultation with various government agencies across continental America. Constant business with the federal government has given the company numerous strengths and opportunities. This fact has also exposed some of the company's weaknesses and opened them up to likely threats. An analysis of these aspects provides a clear picture of the internal and external landscapes of the company. This enables the extrapolation of the company's trends to predict likely scenarios that the company might end up in.

SWOT analysis

Strengths

To successfully shift the attention of a company to a new niche in the market, finances are a very vital element. The TVI Company has a robust financial platform from where they operate. This is attributed to the numerous business dealings and relationships with the federal government and other government agencies. The company has also operated devoid of any long-term equity or debt. These factors are sure to make the transition from scanning devices to security recording devices swift and smooth as they can fully finance the transition.

The company also enjoys a well-organized team of highly qualified executives. These ensure active promotion and protection of the company's interest. A company can only be as good as the leadership of the firm, and the TVI has a very competent team of leaders that are involved in the day to day decision making processes of the company. This means that all plans for transition into the business of security devices have been carefully analyzed and ascertained to be beneficial to the company.

The company also enjoys a good business relationship with the federal government. This allows the company to operate efficiently and peacefully within the jurisdiction of this government. It also presents the company with a robust market for their products as the government also utilizes security recording devices within its institutions. This relationship has in the past enabled them to acquire extensive profits that have contributed to their fair financial position.

Weaknesses

The TVI Company has made its entire reputation from dealing in scanning devices as well as consulting with Canadian Space Programs. They have no prior experience in the business of security recording devices despite their extensive business relationships and financial wherewithal. This gives them a disadvantage in the market, and if not appropriately addressed by the company, it could end up harming the operations of the company.

The TVI Company has also focused their business on the government and its various agencies. This denies the company other sectors of the market such as commercial and domestic consumers. This means that upon entry into the business of security recording devices, the company will have to either forge new relationships with extensive and diverse consumers or stick to dealing with the government that could constrict their level of operation.

Opportunities

According to Home Security Inc. C.E.O Sara Thompson, one of the most promising market niches in the business of security recording devices is personal and domestic security. However, H.S.I only controls ten percent of this market thus inadvertently presenting the TVI Company with a glaring market gap to fill. The TVI Company would therefore be looking at this as an opportunity to take for themselves a share of the market. This would give the TVI Company an advantage as they would reap from all the potential of the field of personal security recording systems and thus give them a foothold in the market of security recording systems.

The TVI Company also has good business relationships with the government. This allows them future contracts for delivery of such security recording systems to the government upon entry into the market niche. This link gives them an advantage over the competition as government contracts usually are quite substantial and have been the cause of the past successes of the TVI Company. The company will thus be looking to increase business with the government to promote their growth in the industry of security recording devices upon entry into the market.

Threats

Upon entry into the market, the TVI Company will be faced with competition from other companies in the business of security recording systems and devices such as our very own Home Security Incorporated among others. These companies will not be willing to lose their market share and are likely to implement various strategies to either prevent the entry of TVI into the market or inhibit their growth. Such strategies will pose a threat to the growth of the TVI Company in the business of security systems.

Having no previous experience in the manufacture of security recording systems, the TVI company will be faced with the rigorous task of meeting required quality standards. This is bound to delay production or sale of these security recording systems which would consequently translate to the loss incurred by the company. This threatens the position and growth of the company in the market of security recording devices.

Expected time frame for entry

The TVI Company is steadily inching towards entry into the market of security recording devices. Judging by the organization of the company's leadership and their financial position, entry into the market is expected to occur after a few months. This is because they will be seeking to increase quarterly revenue thus maximizing the profits from the introduction of their devices. The exact time cannot be determined, but the analysis indicates that entry should occur after three to six months.

Recommendations

The entry of the TVI Company presents a threat to the position of Home Security Incorporated in the market. It is thus imperative that the leadership team of H.S.I implement strategies to check this move by the competition to ensure the business of the H.S.I remains unaffected. This may be achieved by increasing outreach to domestic consumers who subsequently increases market share in personal security device market. This move ensures the H.S.I occupies the significant markets in the business of security recording systems. Another useful move would be to initiate and enhance relationships with governments. This would allow the company to expand its market share that not only increases revenue but also gives the company a favorable competitive platform.