Market Snapshot Mobile sensing devices are handheld technologies designed to scan the local environment for geological, meteoro- logical and/or biological signals. The ability for a mobile device to, for example, quickly and accurately detect danger- ous chemical and radioactive materials is a need that is highly valued in the military market. In the military market, GlobalTech’s mobile sensing device is widely considered the gold standard with a reputation for outstanding durability and accuracy. GlobalTech: Client Brief GlobalTech is a leader in the design and development of mobile sensing technologies for the military market. With the military market stagnating, leadership has recognized, but failed to capitalize on, exciting new growth opportunities in the commercial market.
Military
Commercial
Military
Commercial
Market Growth Rate
-4%
27%
Price/unit (avg)
$25,000
$2,500
Market Share
GlobalTech
87%
6%
SatEye
3% 4% 6%
30% 40% 24%
NavisionTech
Others
The power and pervasiveness of mobile technology has opened up opportunities for sensing devices in the commercial sector. Effectively shutout of the military market by GlobalTech, competitors have seized on new industrial and medical diagnostic applications. Despite boasting superior technology that can detect a wider range of chemical signatures, GlobalTech has struggled to match their success. GlobalTech’s leadership believes that competitors are succeeding in this market by “packaging basic technology with nice looking consoles and slick interfaces.”
Financial Snapshot Two years ago, GlobalTech lost $2.1M, its first loss since the year it was founded. Last year, GlobalTech lost a further $4.5M. This situation has forced the company into a series of cost-cutting measures including layoffs and budget cuts. Forecasts for next year were unavailable at the time of this report’s preparation.
50M
40M
5 years ago 3 years ago
Last year
$ in thousands (000’s)
Revenue
40,500 18,225 14,400
32,100 14,766 13,734
28,500 12,825 20,175 -4,500
30M
-Costs of Goods
-Operating Expenses
20M
7,875
3,600
Operating Income
10M
0
5 years ago
3 years ago
Last year
Revenue
Expenses + COGS
1
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