G4S security company have decided to raise the bar in their operations as more industry players infiltrate the market and create more competition.
While he acknowledged that competition was healthy for business growth, the company’s Acting Managing Director Molefhe Matlhape last week revealed that G4S intended to introduce new products in a bid to stay ahead of the competitors. In his presentation of the interin results of the period ended June 30, Matlhape said the company’s manned and alarm products suffered major setbacks due to unfavourable tendering legislation as well as briefcase competitors who operate without overheads. “The manned security and the systems sections have been heavily affected because of the mushrooming of new entrants in the market. It is very easy to get into the market for these two products as long as you are a registered company. The new entrants take advantage of the government tendering clause that gives preference to citizen owned companies and most of them don’t even comply with the regulations that are in place especially when it comes to pricing. The proliferation of briefcase technological security companies focusing on individual specialised niche markets pose direct competition to the systems installations as they don’t even have to worry about staff,” he said.
Matlhape further said the security systems which is the technological wing was also affected by the global recession and that the company struggled to replace two of the managers incharge of the high tech low large system.
Besides the challenges faced in the manned and systems security products the G4S management jubilantly announced impressive growth as for the sixs months ending June 30, revenue went up by 10.6 percent to P73 million despite the effects of the global recession.
To stay abreast with the market demands, Matlhape said G4S has decided to introduce new products that may see the company gaining more from the manned security especially that government intends to leave certain sectors of the economy, such as security, to the private sector. “We intend to introduce armoured vehicles for the cash in transit business and motorbikes that we believe will come in handy for speedy response in the heavy traffic that characterise our roads these days.”
The G4S Acting MD says the company intends to engage government in negotiations over their exemption from the law that gives preference to wholly citizen owned security companies. “The law came long after we started operating in this country and we intend to engage government in dialogue over this, but this does not include going to court,” he said.