November 14, 2023
In addition to manufacturers of security equipment, companies and security services involved in construction, installation, maintenance and service of security equipment and systems are an important part of security industry. As an intermediary and liaison between security manufacturers and users, they play a vital role in helping rapid development of security industry.
As security systems go digital, IT and analytics, security companies and teams will face increased technological competition. The army of orders is getting bigger and bigger, and new system integrators and engineering companies are constantly under pressure. Initial security companies and teams are under more and more survival pressure. Profit margins are shrinking again and again, and it's getting harder to get security orders!
1. Project resources are limited
Most new major security projects are national tenders. Many overseas integrators have more funds and resources, which has doubled burden on local excellent security companies and teams. Small security projects have small investments and large debts, many want to do it, but do not dare.
2. More analogues and more competition
Due to low entry threshold into security industry, requirements for authorized capital and technical qualifications of personnel are low, enterprises do not need large factories and advanced equipment, do not need a large amount of upfront capital, and even some projects can directly receive prepaid funds. Reduced financial pressure for security companies and teams. This has led to a situation of mixed good and bad and disorderly competition in market.
3. Price war
It looks like topic of "Price War" will be discussed always and everywhere. Because this is a really complex problem that whole industry is facing, but which cannot be solved in a short time. The price war is coming from manufacturers upstream and from PC counterparts. To increase their share, manufacturers have launched a price war, which has reduced gross margin that security companies and teams can add to products, and many service costs are difficult to capture in other elements of service. At same time, to get project, peers compete for low prices, which is even more exhausting.
4. Technical issue
Lack of technical talent: Most projects are still relatively weak in terms of technology and more dependent on manufacturers. The main reason is that cost of talent is high, and nature of small and micro security companies is difficult to retain talent. Information asymmetry: There are so many products and solutions on market, and when there is a project demand, right product and solution cannot be found. The root cause is separation of information between engineering companies and manufacturers.
5. The level of management is low
In terms of enterprise management, most security companies and teams are project-oriented, and person in charge of enterprise is project manager. Larger companies may have a more detailed division of labor. Within this business model, enterprise is not complete in terms of relevant management processes and operational specifications, not to mention ideas and methods of enterprise management. As a result, ineffective management can occur, which often needs to be addressed or corrected by those in charge. In terms of control, there is a big gap with more standardized weak integrators.
1. Various ways to solve financial problems
Currently, most large-scale projects require security company and team to start construction first, meaning there is no upfront payment at an early stage of project, and often it is only promise of Party A. . Therefore, financial capacity is one of issues that cannot be ignored. Therefore, if you want to receive security orders, you must have a certain economic strength or have a trusting cooperation relationship with bank. If necessary, you can use project's winning conditions to borrow money to solve prepayment problem. for project.
2. More flowers bloom, and one spark can start a fire in steppe
Security companies and teams need to take full advantage of potential needs of market segments and improve their own solutions. In segments such as monitoring stores, schools, passenger stations, etc., huge gold mines have yet to be exploited. picturesque places. . If a large engineering project is being taken care of, then look for small to medium security engineering projects. Collect armpits in fur, and one spark can ignite a fire in steppe.
3. Use brand to create your own advantages
When bidding on large-scale security projects, a company's performance, experience gained from past projects, and industry reputation are key to standing out from competition. brand and design experience is all that government places a high value on. Therefore, brand built up over years is an important factor in gaining an advantageous position in industry competition, and gradually forms a brand barrier.
4. Look for new sources of information and take advantage of platform
On your own, you can't be very comprehensive. If you want to receive more orders, you should have several sources of information. Now that security is developing so rapidly, contracting platform for security projects has gradually become an important channel for security orders. Among security platforms, Easy Security is unmatched. Through online, LBS, interactive and collaborative methods, it is first to introduce end-to-end big data protection solutions and build massive collection, aggregation, analysis and maintenance systems through advanced management.
Easy Security provides information release, price comparison, quality control, project acceptance, data analysis and software maintenance platform website for purchasing, installing, repairing and maintaining security products, helping users find suitable products and maintenance of building units. The business direction has shifted from information platform to trading platform, andusing internet technologies to change security industry, solving information asymmetries in transaction process, making it easier for companies and security teams to receive orders and find customers more efficiently.
There is a saying in all walks of life today: if you don't transform, you wait for death, and if you transform, you can court death. Many security companies and teams vacillate between transformation and non-transformation. More and more companies are forced to transform. Some succeed and avoid being marketed out, and many fail in transformation process. However, in a quandary, security actors can only proclaim viability of development by innovating and opening up their horizons, and with benefits of professional platforms, they can still enjoy fruits of development. In era of accelerated industry integration, every construction company must learn to go out and "leverage" to integrate more resources to achieve greater development.