Growth During Economic Instability
Companies who had a strong position in the global market were not as greatly affected by the financial downturn. “In 2008, security was appointed as a core business for Samsung Techwin and as a result, our company benefitted from R&D investment,” Smith said. Because competition has dropped, it became a good time for larger companies to invest and develop new product lines. “We highly invested into the development of new products. We spend roughly 10 percent of our turnover for R&D,” Krebs said.
Some br and ssaw an opportunity to reposition themselves in a slow market. “The economic downturn did affect our global sales, but on the other hand, it allowed us a chance to rethink our strategy regarding our product and our company's future vision,” Ku said. “We ended up launching a new series of network cameras during this time.”
New marketing tactics were also used to combat the economic slowdown. “In order to thrive during those times, we developed a high-value product bundle,” Worndl said. “We shifted in business from selling discrete products to selling bundled solutions. This way, the average selling price goes up, while the consumer is getting better value by purchasing a turnkey solution.”
Surviving New Ma rket and UserRequirements
Market dynamics and technology trends are constantly in motion. “Players in the security market need to keep up and be ahead of market changes,” Hirano said. “The key to survive and thrive in the market is to constantly provide for customers' changing requirements and needs
Vendors must be aware of new standards, such as ONVIF and EN5013x for intrusion, Krebs said. “The current focus is on providing a product which can help reduce costs for customers to upgrade or migrate in the future.”
One other current requirement of the market is keeping products cost-friendly, due to economic uncertainty. “There is a constant drive within companies to work with R&D to reduce costs,” Hayes said. .”
In response to a growing market for entry-level products, many large companies have come out with budget solutions. “Entry-level products are an important market segment,” Krebs said.
By entering into the entry-level segment, large brands are now putting the pressure on companies who focuses largely on the low- to mid- level market. Before, many Asian brands could maintain a higher asking price because they were still significantly lower in cost compared to the high-end sector, said a source. However, now they must lower the margins to compete. This is due to larger companies having to maintain a level of quality that is expected of their brand. “Some of the features we have included in our most cost-friendly line are historically only found in high-end products,” Smith said. .”
Proper considerations and well thought-out plans must be formed for effective product positioning. Providers must listen carefully to the needs of their customers. At the end of the day, quality and reliability will determine the success of a product on the market. MAR