Filter Innovations Inc Case

Topics: Water pollution, Drinking water, Sewage treatment Pages: 6 (1498 words) Published: January 25, 2012
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 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

→ 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

→ 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

→ 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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