Filter Innovations Inc Case

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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 2025, 1/3 of world population affected by water shortage → in Canada, more than $2 billion in sales

→ largest consumers – municipalities, both products and services → significant portion of market – industrial

Competition:
→ dominated by 2 large mutli-national companies ( Siemens water tech and Zenon membrane solutions) → competition targeted large users of filtration systems (corporation and municipalities) requiring over 1 million litres/day → Siemens – 2.8 million in revenue, 6000 employees (150 R&D), serve more than 90% of fortune 500 manufacturing companies, around 100,000 industrial consumers, parent company Siemens AG over 100 billion electronics and engineering company in over 190 countries with 428,000 people, leader in innovation → Zenon – owned by GE, provided a complete range of filtration processes, offered broadest product line in industry, over 100 years of experience, over 300,000 employees in over 100 countries, publically traded with 18 million in revenue → smaller competitors, specialize in niche market, offer sales and support on a specific type of filtration and treatment product

Environment:
→ have to meet provincial regulations based on standards set by federal legislation → some environmental legislation required wastewater treatment → discharge limits for sewer use, storm sewers, and groundwater seepage; limits vary regionally → wastewater dumped for use of a fertilizer must be treated → stricter legislation raising environmental standards required by companies → many companies require certificate of approval from ministry of environment and energy, validating compliance with all guidelines

Filter Innovations Inc:
→ dragasevich studied marine biology, worked for major supplier of filter presses in NA → extensive experience in industrial process and environmental products, sales manager with GAF (industry leader for filter vessels and bag filters) → 1992, founded Filter Innovations

Company:
→ small industrial water filtration company
→ identifies and supplies treatment solutions for groundwater, wastewater, process water and air → evaluated client`s needs and design appropriate system to meet need, develop and build system, install it, monitor it regularly, offer product support → supplies wide range of environmental products to support filtration systems → goal – prioritize social and environmental responsibilities at all times to ensure that actions positively influence both the community and environment → ongoing R&D development of new technologies for new products and systems; important to be recognized as being at forefront of the leading technology → employs 14 people, sales representatives, technology engineers & technicians, administrative staff → alliance with firms acting as distributors of its products and systems across NA with few sales in Europe and SA → serves 500 clients, FII equipment operational in over 1500 business sites; 80% sales in Canada, 15% sales in US, 5% sales outside of NA → wants to be recognized as primary supplier of environmental equipment and products, offers simple, innovative solutions for air and water treatment; wants to be one-stop shop for all filtration needs, offering timely and cost-effective...
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