Filter Innovations Inc.

Topics: Revenue, Income statement, Net income Pages: 7 (1934 words) Published: February 4, 2013
Filter Innovations Inc.

Filter Innovations Inc. (FII) was created by John Dragasevich in 1992. It was based out of Toronto, Ontario and supplied small industrial water filtration systems and environmental products. It focused mostly on projects that required processing below 1 million litres per day. This was because competing companies were more interested in projects that required processing above 1 million litres per day.

Problem Statement
The problem Dragasevich faces with FII is that some of their current wastewater treatment designs did not meet some industrial and municipal guidelines. There is a new technology called membrane biological reactor (MBR) that FII could invest in to help them keep them on the forefront of the technological market of wastewater filtration. However, this technology will have a very large upfront cost and FII will not have complete knowledge and experience with the system for 2-5 years. Dragasevich has to decide if they want to have poor project profits for a few years before they start to create large profits, or if they want to wait and see how the MBR market escalates.

SWOT Analysis
FII is very proud of their knowledge and expertise in the field of filtration systems. Customers look to FII for these things. It shows that they are dedicated and want to give their clients the best possible service available. It also gives customers the feeling of safety that they will not be disappointed with FII’s work.

FII hopes customers view their company as a “one-stop, shop for all filtration needs”. Not only does FII offer pre-built filtration systems, they also supply custom systems based on clients’ specific needs, as well as a wide range of environmental products to support their filtration systems. Clients would be more willing to shop at a place that can save them time from searching for multiple companies to do one job.

FII strives themselves on being environmentally friendly. A corporate goal that was personally important to Dragasevich was that social and environmental responsibilities were a top priority for FII. Any current or new technologies designed by FII were designed to meet and exceed current industrial and municipal guidelines.

With only 14 staff current employed with FII, they were a very small company. With equipment serving over 1500 business sites, FII did not have a lot of room for expansion with the current number of employees. They would not have the current staffing to be able to take on a project like the MBR.

FII only focuses on projects with less than 1 million litres of processing a day. This severely limits their target market. If they were going to implement the MBR into their business, their target market would be current clients. They would have to convince them to buy a completely brand new system for their filtration needs. This could be very difficult as they wouldn’t want to waste so much money on upfront costs when they have a system that still works.

The current technologies of FII are not meeting all the guidelines for industrial and municipal. A smart move would be to train current employees and sell the MBR system. MBR is currently the best environmental option for wastewater treatment. As well, it was anticipated that within a few years, the technology would advance so that MBR could use reverse osmosis, which would be able to turn wastewater into potable water. This would be a huge product incentive for clients because they would save money on water usage.

FII could start to cater to clients who need more than 1 million litres of processing a day. With their expertise and knowledge of filtration systems, they could easily make the step up. They even create custom filtration systems based on clients’ needs, so they wouldn’t have to completely redesign their current base models. FII is worried that Siemens Water Technology and Zenon Membrane Solutions will be too much of a competition....
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