Filter Innovations Inc Case
2008 → John Dragasevich (president), small water filtration company based out of Toronto, Ontario, considering expansion, increasingly strict regulations on wastewater management implemented by government, invest in new technology (membrane biological reactors)?
Industry:
→ increased demand for water and water treatment, trend expected to continue
→ market projections reaching $348 billion
→ demand growing for safe drinking water in developing countries
→ sustainability challenges and advancements in environmental regulation result in growth of demand for higher water treatment standards
→ 2008, 1.2 billion without drinking water, 2.4 billion not connected to wastewater systems
→ 40% projected increase in water consumption by 2025, 1/3 of world population affected by water shortage
→ in Canada, more than $2 billion in sales
→ largest consumers – municipalities, both products and services
→ significant portion of market – industrial
Competition:
→ dominated by 2 large mutli-national companies ( Siemens water tech and Zenon membrane solutions)
→ competition targeted large users of filtration systems (corporation and municipalities) requiring over 1 million litres/day
→ Siemens – 2.8 million in revenue, 6000 employees (150 R&D), serve more than 90% of fortune 500 manufacturing companies, around 100,000 industrial consumers, parent company Siemens AG over 100 billion electronics and engineering company in over 190 countries with 428,000 people, leader in innovation
→ Zenon – owned by GE, provided a complete range of filtration processes, offered broadest product line in industry, over 100 years of experience, over 300,000 employees in over 100 countries, publically traded with 18 million in revenue
→ smaller competitors, specialize in niche market, offer sales and support on a specific type of filtration and treatment product
Environment:
→ have to meet provincial regulations based on standards set by federal legislation
→ some
Industry:
→ increased demand for water and water treatment, trend expected to continue
→ market projections reaching $348 billion
→ demand growing for safe drinking water in developing countries
→ sustainability challenges and advancements in environmental regulation result in growth of demand for higher water treatment standards
→ 2008, 1.2 billion without drinking water, 2.4 billion not connected to wastewater systems
→ 40% projected increase in water consumption by 2025, 1/3 of world population affected by water shortage
→ in Canada, more than $2 billion in sales
→ largest consumers – municipalities, both products and services
→ significant portion of market – industrial
Competition:
→ dominated by 2 large mutli-national companies ( Siemens water tech and Zenon membrane solutions)
→ competition targeted large users of filtration systems (corporation and municipalities) requiring over 1 million litres/day
→ Siemens – 2.8 million in revenue, 6000 employees (150 R&D), serve more than 90% of fortune 500 manufacturing companies, around 100,000 industrial consumers, parent company Siemens AG over 100 billion electronics and engineering company in over 190 countries with 428,000 people, leader in innovation
→ Zenon – owned by GE, provided a complete range of filtration processes, offered broadest product line in industry, over 100 years of experience, over 300,000 employees in over 100 countries, publically traded with 18 million in revenue
→ smaller competitors, specialize in niche market, offer sales and support on a specific type of filtration and treatment product
Environment:
→ have to meet provincial regulations based on standards set by federal legislation
→ some