Rapiscan Systems Competition
Now Viewing Rapiscan Systems's competition in: Security System Services
Call Preparation Questions
Customers, Marketing, Pricing, Competition
Does the company serve mainly residential or commercial customers? - The industry consists of commercial and residential segments, each of which uses different types of equipment and monitoring.
If a monitoring company, what percentage of subscribers is lost each year? - Since about 40 million Americans move every year, natural attrition is fairly high.
How does the company market its services? - Commercial marketing usually consists of a direct sales force that calls on owners and operators of commercial buildings. Residential marketing usually includes advertising, telemarketing, dealer programs, and a commissioned sales force.
What are the company's marketing strategies to increase new business? - Referrals by existing customers remain the primary way for security companies to find new customers.
Who are the company's main competitors? - Competition is growing from electrical contractors, as elaborate integrated security and building automation systems require a lot of complex wiring.
If a dealer/installer, does the company have contacts with homebuilders, property managers, etc.? - Security companies try to partner with builders catering to their selected demographics.
Has the company investigated opportunities in the healthcare security market? - Growing security and safety concerns have increased healthcare investment in specialized high-tech security systems, despite high costs and privacy concerns.
Competitive Landscape
Demand is driven partly by home sales, new home construction, and new commercial and office construction. The profitability of monitoring companies depends on the volume of customers, as most costs are fixed. Large companies have advantages of scale in operating monitoring centers and in national advertising and brand recognition. Small companies often compete by selling customer contracts to the large monitoring companies, or reselling the monitoring companies’ services, which they buy wholesale.
Business Challenges
CRITICAL ISSUES
Demand Linked to Home Sales, New Home Construction - Homeowners are most likely to install a security system when they buy or build a home. About 20 percent of US households are protected by professionally-installed and -monitored electronic burglar alarm systems, according to the National Burglar & Fire Alarm Association. The volume of home construction and home sales largely determines industry growth.
Keeping Up with New Technology - Security companies have to invest significantly to keep up with the latest technology as security systems become more complex. Biometrics identification, GPS tracking, and buildings with automated systems are examples of fast-growing, new security technologies.
Industries Where Rapiscan Systems Competes
- Security Products & Services
- Security Products
- Security & Monitoring Equipment
- Security Products
