Industry Conditions Report
In the next four years, the biometric sensor market will see a 59% increase in unit demand. Growth rates vary among the four market segments – Thrift, Core, Nano, and Elite.
The biometric sensor industry is a fast growing sector of the larger sensor industry:
• Andrews Comp-XM Corporation has three competitors, biometric business units of Baldwin, Chester, and Digby Corporations– these companies have well established strategic directions;
• There are four segments; • There are no labor unions but there are opportunities to
invest in Human Resources; • Some companies have been investing in TQM (Total Quality
Management)/Sustainability.
As CEO you will be responsible for the strategic direction of the Andrews Comp-XM business unit and its tactical execution.
At the beginning of every year, the board of directors will ask you to respond to a set of questions about your situation. The questions will be drawn from recent activities within the industry as described in last year’s results and from the situation that you expect to develop over the next year.
After satisfying the board’s questions, you will execute your plan by making operational decisions in Research & Development (R&D), Marketing, Production, Human Resources, TQM/Sustainability and Finance. Your results will be assessed with a Balanced Scorecard.
4.1 Market Segments
The biometric sensor market evolved from two original markets, a low technology segment and a high technology segment. The original low tech segment split into Thrift and Core. The original high tech segment split into Nano and Elite. Because of this evolution, the segments are less distinct than the segments in your former business. Straddling two segments with a product is still viable, although you can expect straddling to become more diffi cult as the market evolves (see Figures 1.1 – 1.3).