Filter Innovations - Hbr Case Analysis Essay

3288 Words Feb 3rd, 2014 14 Pages
Problem Statement

John Dragasevich is the president of Filter Innovation Inc. (FII), which is a small filtration company. With government restrictions becoming stricter and tighter, Dragasevich is faced with the decision to expand his company and invest in MBR (Membrane Biological Reactors) technology or continue operating his business like he has been doing.

Key Issues

1. The changing of government regulations towards water filtration systems
2. Lose a competitive advantage from not investing in MBR technology
3. Prioritize environmental responsibilities at all times – MBR is best environmental option
4. Primary Business Strategy – Retail vs. Customized Products

Issue 1:

MBR’s are the new emerging technology for
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Situational Analysis

Overall Market:

Globally there is an increasing demand for water and water treatment. By 2010, the water and wastewater market is projected to reach $348 billion. The demand for clean and safe drinking water in developing countries is growing. In 2008, 1.2 billion people were without drinking water and 2.4 billion people were not connected to wastewater systems. By 2025, it is projected that there would be a 40% increase in water consumption. In Canada, the water and wastewater markets exceeded $2 billion in sales in 2005.

Filter Innovation Inc.:

Filter Innovation Inc. was founded in 1992. John Dragasevich operates the company as the owner of FII and has 14 employees employed at FII. In 2006, Calco Environmental Group (CEG) purchased FII, which gave FII access to resources, networks and knowledge. Dragasevich went from having the role as an owner to becoming the president and CEO of FII. Decision-making power for FII falls on Dragasevich but CEG could influence some of his decisions. Dragasevich would like to invest in MBR’s, which would require a large monetary investment, but he is afraid that now is not the right time and that his sales projections may be overly optimistic.

Mission:

FII’s mission is to be recognized as the primary supplier for environmental equipment and products for clients looking…

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