Initially we met with our advisor and client to try and come to a conclusion as to what it
was the client would be looking for from our deliverable. This process involved some back and
forth through e-mail and a few ZOOM sessions. The main point that came across is that our
client was looking to expand their services into an area that similar businesses have tried before.
Our client currently provides security alarm services, but wants to expand into what is called a
holistic provider. There they provide both alarm and guard services that work together rather
than as potential substitutions. The only issue is that other businesses have struggled to be
successful in providing that service. Our client believes they will be able to. With that in hand,
out first leg of research involved surveying the current customers of the client to gauge whether
or not there was any interest in this kind of service, and if there were local business attempting to
offer the service. We found there is an interest and that some of the larger companies in the
industry are attempting to expand into this as well.
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In addition to looking at ways for our client to brand these new security services we also
looked at how they can improve on other aspects of the company. Mainly, issues of client
concentration, intense industry rivalry, and problems with accounts receivable turnover. We
came to the conclusion that the client must find ways to diversify the types and number of clients
to avoid being handicapped by a downturn in a specific industry. By researching other potential
fields that could benefit from both the security services they already provide and the holistic
approach they hope to provide, we found some potential fields. We also discussed ways in which
to lessen the effects of industry rivalry.
I personally contributed by conducting an industry analysis on the security guard
industry, the industry our client will be stepping into. I also looked at the major threats affecting
our clients firm and how those would translate into our recommendations. I drafted the
competitive analysis for the paper, looking mainly at the industry as a whole. Since there are a
large amount of firms in the industry, it did not seem feasible to try and compare a few
competitors to our client. Finally I drafted the recommendation and implementation for how they
should go about marketing their new holistic service to both existing and future clients. All
members of the team peer reviewed each other's sections as well.
As mentioned, the first recommendation is how they will market their new services. The
second is to lower their A/R turnover rate to help improve cash flows. Next, in order to deal with
their client concentration issues we recommend an expansion into HOA and multi-family
properties that utilize guard and security services. In addition to expansion we recommend
running reports to make sure the client concentration does not get worse. Our final
recommendation is for the client to begin positioning themselves so that they are able to become
and acquirer of other security business through asset sales.