Defender Direct Inc Case Study

Case 9: Defender Direct Inc.: A Business of Growing Leaders

Defender Direct Inc. was opened as a start up organization in Indianapolis, Indiana. This privately owned company dealt with installation and sale of ADT security systems together with Dish Network Satellite Television in U.S (Pearce & Robinson, 2013). Writers who offer management case study help at Edudorm essay writing service notes that precisely, the company was founded by Dave Lindsey in his bedroom home back in 1998. Lindsey decided to start the business as an entrepreneur following a transition from being an employee in Medeco Security Locks, Inc where he worked in new-product development department.

To start the current Defender Direct Inc., Lindsey used his personal savings together with those of his wife which added up to $30,000 to start the business that he initially gave the title Defender Security Co. Thus, after the business continued to operate successfully, Defender Direct endured rapid growth within a 10 years period recording and average annual growth rate of approximately 60% (Pearce & Robinson, 2013). This made the company become the dominating satellite and security systems wholesaler in the Midwest. Precisely in 2008, the company ranked among the top 500 rapidly growing companies in United States after recording revenues of approximately $150 million (Pearce & Robinson, 2013).

According to Lindsey’s assertions, his company’s stellar growth and development in the U.S market was promoted by emphasizing on direct-marketing and nationwide expansion. Therefore, in order to achieve this, Lindsey was motivated by the notion that “businesses don’t grow – people do”. This means that the basis of Defender’s culture and value emphasized on employee development. Lindsey believed that their growth was not fostered not by competence to offer quality security systems and installation services but rather because of the development of the employees. Experts who offer marketing management assignment help at Edudorm essay writing service indicates that thus, Lindsey believed that doubling the team members was directly proportional to the overall growth of Defender Direct Inc. thus, in this case the major problem with Defender Direct Inc. is based on how to manage and control the growth rate as it can be detrimental to the future progress of the company (Pearce & Robinson, 2013).

Alternative Solutions for Defender Direct Inc.

1. Defender Direct Inc. may implement diversification strategy in order to maintain and control the stellar growth. This might be achieved through venturing in other related businesses such as selling and installation of electronic products connected to the security systems.
2. The company might also execute defensive strategy that will reduce the probability of materialization of risk associated with incurring losses in future. Citing from the high growth rate experienced by Defender Direct Inc. currently, future losses might appear huge to the company to an extent of hindering further expansion and growth.
3. Lastly, Defender Direct Inc. might decide to start producing their own security systems as a strategy of maintaining the growth rate. This would help them in future particularly in dealing with potential market changes that might be resulted by demand changes on the associate’s products used by the company.   

Selected Solution for Defender Direct Inc.

Implementation of diversification strategy by Defender Direct Inc. is very imperative to the company particularly with regard to control and maintenance of their growth rate. It is factual that there is stiff competition in security systems market particularly in United States as large number of new entrants continues to be recorded annually. Authors who offer MBA assignment help at Edudorm essay writing service points that thus, since Defender Direct Inc. depends basically on business associates who produce those security systems and satellites, competition effects can be very detrimental to the success of the company.

Therefore, diversification strategy will help the company with the control measure particularly in lessening the effects of competition or failure of the associates to the overall success of the company. Venturing in another but related business will additionally generate more revenue for the company that might be used for future recovery just in case the risk materializes.    

Implementation for Defender Direct Inc.

Diversification strategy can be implemented through venturing in other related businesses such as selling and installation of electronic products connected to the security systems. These related business environments will make sure that the business is still on track but still can generate revenues externally. This will reduce the probability of suffering from future risks associated with failure of business associates and stiff competition.

Diversification strategy can be used before implementing other strategies such as defensive strategy and production of their own security systems and satellite. Tutors who offer operations management assignment help at Edudorm essay writing service acknowledges that precisely, diversification will prepare the company in making defensive strategy and producing their own products by giving them experience regarding other markets. Therefore, after venturing in the selected market, the company will perform successfully and will be able to maintain and control their growth rate.

Conclusion and Recommendation 

Generally, Defender Direct Inc. is obliged to implement strategies that will help the company maintain and control their growth rate together with minimizing chances of risk materialization in future. It is factual that rapid growth endured by Defender Direct Inc. can pose future effects to the success of the company such as huge losses. Therefore, using diversification as one of the strategies to be implemented in the company is significant to the future success particularly with regard to control and maintenance of their growth rate.

Other strategies that might be significant for the future success of Defender Direct Inc. include defensive strategy and production of their own security systems and satellites.  These strategies will watch over future risks that the company can incur particularly with regard to the deceleration of the company’s success.

Reference

Pearce, J. A., & Robinson, R. B. (2013).Strategic management: Planning for domestic & global competition (13th ed.). New York, NY: McGraw-Hill.

https://www.soapboxmedia.com/companies/defenderdirect.aspx

APPENDIX 

SWOT Analysis

Strengths

1. Marketable product line
2. Competent employees
3. Effective systems that retain the values of the company

Weaknesses

1. Highly dependent on employee development
2. Less focus on product development
3. Increased bureaucratic propensities 

Opportunities

1. International market expansion
2. Sales increase particularly through internet promotion

Threats

1. Stiff competition
2. Lack of own products
3. New entrants