Cctv

The problem at hand is whether or not Extreme CCTV should purchase Derwent. There are only two decisions Jack Gin, the president of Extreme CCT needs to make; whether or not to purchase Derwent.

The performance of the CCTV industry has been strongly growing since the late 1990s and the trend is expected to continue for a multitude of reasons such as decreasing security guard expense and studies showing a high percentage of crimes are deterred from having CCTV.

By answering where and how Extreme CCTV is currently competing, we can assess the company’s current strategy and how either the acquisition or not acquiring Derwent will fit into Extreme CCTV’s corporate strategy. CCTV is currently trying to manage growing sales numbers while at the same time grow sales outside of their traditional market space through exploring new markets, in particular the European market, with a future strategy of how to grow sales within Europe. For this strategy to be successful, the strategy must be consistent with the Extreme CCTV’s external and internal environment, the internal environment being goals, values, resources, capabilities, structure, and systems.

Extreme CCTV’s goals include branching out in the European market and acquiring Derwent will assist in accomplishing this goal because Derwent has focused solely on the U.K market while largely ignoring the North American market where Extreme CCTV has dominated.

Extreme CCTV’s current capabilities and products include stand-alone cameras, integrated day/night cameras, and infrared low-powered illuminators but they lack the high-powered infrared and rely on Derwent technology to fulfill this gap through a distribution agreement.

The CCTV market, or the external environment of Extreme CCTV, is highly fragmented with no one supplier achieving majority share in any category. Through the acquisition of Derwent, the UF500 would give Extreme CCTV an entry into a new product segment and allow their existing customers...