Metropol Base-Fort Security Servieces

Problem

The problem for Metropol is how to it shall position itself toward its future direction in the security services industry. Large multinational security firms such as Pinkertons are adding increased pressure which in turn was further tightening the competition in the industry. Also, the security guard business is rapidly becoming a commodity and Metropol is depending on the security guard business for 90% of its revenue.

Recommendations

Expansion in both the security products and services to improve Products and Quality

The expectation for the Electronic Security Devices (ESD) segment of the market is a rapid growth which is faster rate than the basic hardware segment. Since ESD equipment offers higher margins than security guard services, expanding this product line which gives more focus to the growing segment will provide Metropol with higher profit margins. The proposed expansion will aid Metropol to develop into a total service provider which in turn will have favorable consequences on its current poor reliability rating apart from higher profits. Also, having only one company to coordinate with in sourcing complete security solutions will be a value added benefit for the customers. That being said, Metropol could enter into service contracts in maintaining their equipments which will then give the company a new source of revenue. In offering the service contracts, Metropol can take advantage of the customers’ dependence for the monitoring and servicing of their equipments and systems which will indicate higher switching costs instead of just switching security guard services only. Metropol can also offer upgraded packages for their systems especially that there are companies that want to improve their securities in the advent of increased security breaches and problems

Expanding geographically

In connection