Abstract
Market Overview
Greater Emphasis on Vertical Market Approach to Result in Improved Customer-focussed Security Solutions
Vertical market penetration, which relies upon determined customer-segmented
analysis, enables companies to identify exciting growth opportunities and
provide optimised customer-focussed solutions. Thus, the adoption of a
vertical alignment strategy by companies is likely to assist them in offering
existing customers the benefits of a sector-focussed approach, while also
creating opportunities to target new customer sectors. This will contribute to
the growth of the European industrial and commercial (I&C) security market.
Interrelationships between vertical business units within the security
industry offer direct opportunities, as multiple business units require
similar products. Further, as most global security groups have established
services divisions, they will be well positioned to exploit a vertical market
strategy by designing and customising solutions while utilising the cost
benefits from occupying multiple levels of the value chain.
As strategies that enable security providers to secure organic growth are
being embraced by leading participants in the industry, the European I&C
security market is becoming highly competitive and increasingly consolidated.
"Thus, insights into specific market sectors are likely to lead to highly
productive strategies that will result in efficient allocation of resources by
security providers," states the analyst of this research service. "Integrating
a vertically segmented strategy with a regional or national management
structure will become essential to enhance the growth potential of large
security providers seeking regional market expansion."
Market Growth to Hinge on Transition from Product-driven to Customised End Solutions
Vertical industry information aids in strategic business planning, thereby
providing security providers with comprehensive knowledge of specific industry
challenges. At present, the emerging global economy, the consolidated nature
of the electronic security sector and the pursuit of enhanced customer
familiarity are driving the security industry towards specific vertical market
strategies. As a result, the electronic security industry is witnessing a
shift in focus from product-driven to customised end-user solutions, thus
supporting the growing importance of vertical market strategies.
Consequentially, the use of customer-segmented analyses will help in providing
optimised customer-focussed security solutions.
"Currently, security companies are implementing vertical market strategies in
varying degrees," says the analyst. "Thus, it will become vital to arrive at a
clear strategic decision on the adoption of such a strategy. Further, once a
vertical strategy has been decided upon, its purposeful and focussed
implementation should be undertaken."
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