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)?

→ 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

→ 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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