What the experts say

A foreign currency account or forward contract would protect against such fluctuations. Putting in place the correct trade finance solutions can ensure Safegard Systems’ international transactions proceed more effectively.

Plan to avoid strain on cash and staff

John O’Callaghan, director, BDO Simpson Xavier SAFEGARD Systems faces the common challenge of managing a significant increase in scale. It is a process that must be handled carefully as many businesses can run into difficulties during this transition.

As with any journey, having a map to your destination is critical, as is having a clear plan. Shaun Magill has already identified his key target areas: the new European and Scandinavian distributors as well as ramping up in America.

Safegard Systems must ensure it has the resources in place to execute this expansion as well as catering for its existing clients. This will probably involve growing the management team and designating key individuals to project-manage the expanding channels.

The increase in human resources and growth in sales will undoubtedly produce extra costs before it starts generating revenue. A cash forecast will be essential and even additional finance facilities, which should be achievable considering the company is debt-free and owns a property, should be considered. Magill can then keep a strategic overview of the expansion programme.

Develop international distribution links

Billy Walsh, senior business development adviser, Enterprise Ireland TO secure growth, it is essential that Safegard Systems develops an international distribution network. This can be achieved through architects, specifiers and consulting engineers endorsing its products and recommending the control systems for inclusion at the design stage of large construction projects.

The company should target such people in markets where the construction sector is booming, including America and the Middle East.

Gaining and maintaining inclusion at the design stage internationally is the key challenge.

Safegard Systems must market and brand itself as the international standard in fire and smoke control systems. The company needs to ensure that its products remain at the leading edge of fire and smoke damper control technology.

The firm must continue to invest in research and development as well as market research to ensure that the firm provides products that meet future industry demands and that conform to changing legislation.

Use different approach in America

Brian Fenix, marketing director, Hewlett-Packard Ireland SAFEGARD Systems has taken advantage of the growing homogeneity of the European damper market to develop a significant international business. Tackling America will require a more strategic perspective.

To build a US presence, the firm should do three things. First, segment the American damper market by user needs. At present it sells to a variety of groups, but it may be better to regard each of these as distinct segments with specific needs. It must then assess its ability to service these segments now and as its technology develops. Second, it should evaluate the level of resources required to service each segment competitively over the long term. Finally, it should select one segment that matches both its ambitions and its resources and seek out a distributor with segment-specific expertise.

Safegard Systems should ensure that it does not compromise its existing domestic and international success by overstretching. When selecting the distributor, the key will be a track record in introducing new technologies to institutional markets and securing suitable reference sites.

Make it easy for architects to order

Andrew Fordham, head of business marketing, Eircom TO get architects to specify his product as a matter of choice, Conor Walsh should continue with tactical activities such as association membership and reference sites, but he should also focus more on strategically important activities in this field.

There are three of these. First, lobbying. The new EU directive looks very beneficial to Walsh and he should engage the services of a professional lobbying business to help him fully exploit this.

Second, like most products that bring extra value, they cost more. Walsh has to help his customers look beyond this issue. Demonstrating the value will be achieved partially by the reference sites. Going further by showing true lifetime costs verses the upfront cost will also be useful.

Finally, Walsh needs to concentrate on the process of getting his product in front of people. Like all professionals, architects are busy. Perhaps he can do more to make sure they have the relevant information about the product and can order it. Walsh will find the internet will help here.

Generate demand through the internet

Sean Murray, the director of marketing, Bupa Ireland WHILE it seems clear that contractors and architects will remain the main source of business through specification of the systems, the firm could consider generating end-user demand by raising awareness of its product and the benefits. Given the diverse nature, both geographically and in an industry sense, of the end users this could require further refinement of its diversification strategy in a very cost-effective way.

Strategically, Safegard Systems may need to consider whether the American or European markets offer the best opportunities. It may also need to consider which industry sectors are likely to generate most construction activity in the years ahead.

Having segmented the potential in this way, it can design a simple information campaign for what is likely to be a small and identifiable audience. This will almost certainly be a web-based campaign, using the best effective simulation techniques to demonstrate the system in operation on a website.

Targeted direct mail, either electronic or paper-based, can then be used to direct the target audience to the website.