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Managing a Business/Metal detector product manufacturing.

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Question
Dear Ken

Do you feel that the metal detector product manufacturing could be a good Business product line startup?.

The metal detector product are installed in airports, shopping malls, Theatres, Parks etc where Security is of prime importance.

Can you suggest some innovations in the metal detector product?.

Thanks
Prashant

Answer
Hello Prashant,

Although the metal detector industry is almost a billion US$, it's dominated by two companies: Smiths and OSI, both former customers of mine. They have scale and very low cost manufacturing. There are over 20 other companies competing, but in smaller markets. The product is a commodity and as such, price is the only thing that matters. The market has been growing slowly--less than 2%/year, meaning it is fairly saturated.

The technology is the same throughout the industry, using electromagnetic induction to detect various types of metal. This is a low cost way to achieve the purpose so I don't see a different technology being able to compete on price.

The scanners being deployed at airports do use a different technology but they are much more expensive and will not replace metal detectors in most venues.

Although there is very little barrier to entry, I don't see this a good business to start.

Warm regards,

Ken

Managing a Business

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Ken Tasch

Expertise

My business and management expertise covers: Strategic Planning Business Operations Marketing/Sales/Business Development Manufacturing Engineering

Experience

I've started multiple businesses and managed others businesses, as president, in my 45 year career. I've worked for large multi-nationals as well as small businesses, both public and private. I've written an eBook on business capture management which can be found on my Web site: www.goLAUNCHsales.com. I am finalizing a general business book which I plan to publish this year. The book is an encyclopedia of business information.

Organizations
I'm a top contributor in LinkedIn's Harvard Business Review Group. I co-manage The Cultural Heritage Business & Law World Forum.

Publications
The Harvard Business Review is publishing a short piece on innovation in the upcoming September edition.

Education/Credentials
BSME Mechanical Engineering Non-degree graduate work at the Thunderbird School of Global Management

Past/Present Clients
I formally retired from the corporate world last year. I've since started a consulting and executive coaching business called LAUNCH™ Business Consulting. Information on all my current clients is confidential.

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