Security

The Major Security Companies “Wait and See” Strategy is Allowing Others to Drive Innovation and Steal Market Share

The message from the market seems clear; major conglomerates in the security business have given up on their long standing strategy of growth through acquisition. None of them excluding Tyco, have made a significant acquisition since 2010. In the 5 years prior to that they were all active in acquiring businesses both large and small; increasing their geographic scope and updating their technology. Instead the market now faces, what Martin Gren from Axis ‚ Communications calls, “Consolidation by Starvation”. He continues ‚ "There are now more than 500 manufacturers of IP Cameras and this high ‚ amount is not sustainable. The bulk of smaller players will be forced to exit the IP camera industry as they will not be able to afford the ‚ necessary R&D costs. The top players, who can effectively execute ‚ their strategy and invest in R&D will prosper. Some, but not all, will ‚ acquire the relevant technology". Axis fully expect that in 10 years ‚ time, […]

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