Business Case Study - Cctv Essays

2509 Words Mar 28th, 2010 11 Pages
Case Study

Extreme CCTV

(all details discussed in this case study have been taken from the Extreme CCTV case study as presented in Cases of entrepreneurship: the venture creation process (Morse & Mitchell, 2005))

Student Name: Katrina Binotto Student Number: S3172726

Course: BUSM 2367 – Business Enterprise One

1. If you were Jack Gin, what would you do: acquire Derwent Systems, based in Newcastle, UK, to extend its reach into Europe, or focus on the IPO?

When assessing if Jack Gin should acquire Derwent Systems or focus on IPO it is would be best suggested to undertake a review of the attractiveness and competitive position of the proposed acquisition. One method of doing this is through the use of the Boston
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Without reliable quality products Derwent would allow competitors access to their market, reducing their cash flows and product sales.
• Substitutes o There are very few substitutes to CCTV. Any alternative products do not provide the same level of quality or access to the same features provided by Extreme (and Derwent) products, thus this factor is considered low.
• New Entrants o The possibility of new entrants into the market is low due to the fact that a number of businesses are already participating in the market, and any new entrants would need a large capital, for research and development and product development.
• Rivalry o It is possible that Pelco may merge with other competitors, such as Silent Witness, and their new competitive power would be unknown at this time. Therefore this would be considered a medium risk as neither the new market nor the strategic direction of any competitors is known. 5. Analyse the opportunity using the First Screening Guide INDUSTRY ANALYSIS

• What is the industry that addresses this market? o CCTV equipment
• Number of competitors
 Pelco
 Silent Witness
• Relative size of competitors o No one competitors having a majority share in the market, which was highly fragmented. o Pelco – in Extreme CCTV’s market space, from Southern California o Silent Witness – Canadian public company, worldwide networks with good growths

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