Homeland Security Growth Strategy
The Client
One of the largest suppliers of physical security and access control products in North America.
The Challenge
Increased competition and price pressures in their core product offerings underscored the need for our client to expand out of what was increasingly becoming a commodity supplier business and into the much higher margin businesses that exist within the $65 billion U.S. Security industry. The industry, fueled by the Department of Homeland Security budget, is expected to reach $90 billion by 2008. HighQuest Partners was engaged to validate the Homeland Security market opportunity, identify other high potential market opportunities and develop a market/growth strategy and implementation plan to successfully target business opportunities within the security industry.
The Solution
HighQuest Partners delivered a growth strategy, business model, and an actionable implementation plan for our client to launch their new security solutions group. The strategy included a host of complementary product and service offerings. The client’s catalogue of products now moves beyond the traditional product range, which focus mainly on securing the exterior perimeter. Their new products, such as card readers, sensors, lighting, CCTV, and alarms serve to secure the entire facility - both internally and externally, as well as detect intrusion. Additionally, the new business model allows our client to offer services such as security assessments, security consulting and even general contracting. In the past, our client only manufactured and distributed materials – no consultative selling or value-added services were provided. All of these product and service offerings will allow our client to provide a turn-key site security solution to their customers, and tap further into the security market.
The Results
Once implemented, the growth strategy will allow our client to grow from approximately $450 million in revenues in 2003 to $1 billion by 2008. This increase will be fueled by the new security solutions business which expands our client’s marketplace from a $3 billion sub-sector of the security industry in 2004 to a much larger $13.1 billion sub-sector by 2008. Our client has made very significant progress in implementing the strategy and is currently ahead of the revenue and income growth plans.
