NCJ Number
149582
Journal
Locksmith Ledger Dated: (May 1994) Pages: 44-56
Date Published
1994
Length
13 pages
Annotation
This article discusses the market conditions that should be considered by any locksmith interested in entering the alarm-installation field.
Abstract
Issues addressed include the degree of competition, the effects of large installing companies, whether and to what degree competition will change in the future, and how installation and monitoring prices are determined. The article also analyzes whether vertical or horizontal integration is beneficial to installers. Vertical integration means a company enters the production of its inputs or uses its output to produce some other products. This is true also for a wholesaler who enters the retail end of its business or the manufacturing of the product it sells. Horizontal integration means a company acquires another company that is similar in operation to its own. Vertical or horizontal integration occurs when there is a decline in costs of any segment of the operation. Also discussed is whether purchasing other vendors who offer similar services reduces costs. This analysis is based on national security industry data and a detailed survey of end users and police records in three suburban communities in the Philadelphia metropolitan area. 3 tables and 4 figures