Filter Innovations Inc Case

1489 words 6 pages
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
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ucing disposal costs; demand ranges from short-term, quick-fix to long-term consultation/installation (ongoing monitoring and support)
→ tend to focus on projects requiring less that 1 million litres/day; able to provide personalized support; larger companies don’t find these projects profitable, less competition
→ customers in 2 equal groups – environmental consulting companies/distributors on behalf of their clients; end users (buy direct from FII)

Environmental consultants:
→ analyse clients’ wastewater treatment needs, recommend solution and help implement it; after assessing need, issue request for RFP from each vendor, use industry expertise to recommend best option for client

End user:
→ no internal capability, FII identify needs, build custom solution to fix problem (incorporating restrictions); if commodity products much more price sensitive choose vendor with lowest price, for custom products price less of a concern and willing to pay; learn through tradeshows, advertising, word-of-mouth, and industry reputation

MBR:
→ new, stricter government regulations meant that company’s existing wastewater treatment designs did not meet new guidelines; faced with decision of whether to expand into MBR market
→ MBR – new technology for wastewater treatment, allow for water re-use; different application than FII
→ MBR designed to treat biological wastewater, predict that MBR system will be used to add reverse osmosis to make water safe for portable water

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