I want approximately 400 words total to describe the market trends the LoJack company will face for the following areas:
A. Market structure
B. Impact of new companies entering the market
This will build on the attachment which described the current market conditions of LoJack (oligopoly)for (a) market structure and (b) impact of new companies entering the market.
Case Scenario: Oligopoly Market Structure:
The LoJack Company operates worldwide offering a patented security product. Competitors can obtain a process patent, and produce a similar product using a different process and not violate LoJack’s patent. Are there other companies that do not provide the same, but similar products? The answer to this question is yes. A large number of companies do provide this service. There are several companies (Iridium, Orbcomm, and MSV) who are in business to meet the satellite messaging requirements of these companies. Orbcomm is the major player in this market and according to their website the company does have a number of major customers who use their services for fleet tracking thus the service LoJack provides is not entirely unique. Based on the product offered and the current market competition, LoJack is an oligopoly: there are very few firms providing the same service as LoJack, but in the overall asset tracking system they do face serious competition. That market is competitive.
Impact of New Companies:
LoJack currently face competition from companies such as On-Star, cell phones, and GPs devices. The difference is LoJack provides direct police communication; whereas the competitors access law enforcement sources via a middleman. The current impact from competitors is insignificant however; in the future advancement of technology might allow competitors to perform the same functions.
This will most likely not occur in the near future because LoJack holds impressive and stable contracts with law enforcement. A competitor entering the market will most likely be purchased by LoJack or cease business operations due to the vast demographic LoJack controls.
LoJack’s current market structure is worldwide. The company states it has an, “unrivaled, proven solutions and direct integration with law enforcement.” (LoJack 2009) This advises the consumer that there might be competition in the stolen car recovery business, but none that matches the power of LoJack.
The market structure is strong due to the company’s partnership with local and federal law enforcement. “A key strength that sets LoJack apart is the company's unique relationship with federal, state and local law enforcement agencies throughout the U.S. Unlike any other company, LoJack installs its Police Tracking Computers (PTCs) in law enforcement vehicles, helicopters and fixed-wing aircraft for optimal tracking and recovery of stolen assets. LoJack's software and databases are directly integrated into each state's crime computers, providing another connection to law enforcement.” (LoJack 2009)
While the competition is present, the competition is a middleman for law enforcement, whereas LoJack is the direct source of information for law enforcement, making its market structure strong and, at this time, untouchable.
Impact of new companies entering the market.
Today’s competition to LoJack is On-Star, Cell Phones, and GPs devices, as all have tracking devices. The difference is only LoJack has direct police communication; whereas the others do not.
The current impact today is not significant now, but these devices, in the future, might be able to perform the same function as LoJack with the advancement of technology. I do not vision this happening for sometime, as the contracts LoJack has with Law Enforcement are impressive and stable.
Any competitor that comes close to LoJack, will either be purchased by LoJack or possibly cease business operations, due to the vast demographic LoJack serves.
To answer the question, the impact is non-significant at this time.
reference link - www.lojack.com
Who are LoJack competitors? Who should LoJack consider a competitor? Who are the main competitors in this industry?
LoJack competitors are primarily in the Security Products industry. LoJack also competes in the Telemetry & Telematics Services Providers sector.
LoJack competitors include:
• DEI Holdings
• OnStar
• Winner International
https://www.hoovers.com/free/co/burn.xhtml?ID=16551&cm_ven=PAID&cm_cat=GGL&cm_pla=CCM&cm_ite=lojack_competitors
LoJack Corporation, the company that invented the stolen vehicle recovery market more than two decades ago, is the global leader in finding and recovering a wide range of mobile assets including cars, construction equipment and motorcycles -- having recovered more than $5 billion USD in stolen assets worldwide. In today's rapidly changing world, LoJack's core competencies are more valuable and more relevant than ever as they are now being applied into new areas, such as the prevention, detection and recovery of stolen cargo and finding and rescuing people with cognitive disorders such as Alzheimer's and autism. LoJack has the proven processes, ultimate technology for recovery -- Radio Frequency -- and unique integration with law enforcement agencies, making its offerings the most effective solutions that not only deliver a wide range of recoveries, but also enhance the safety of the public on a global level. LoJack's Stolen Vehicle Recovery System operates in 27 states and the District of Columbia, and in more than 30 countries throughout North America, South America, Europe, Africa and Asia. For more information, visit https://www.lojack.com.
https://news.prnewswire.com/DisplayReleaseContent.aspx?ACCT=ind_focus.story&STORY=/www/story/06-02-2009/0005036956&EDATE=
The question of whether LoJack is a monopoly or not will depend on how you classify the product. They have competition in the sector they operate, vehicle and asset tracking. In fact one company has an image on its website that says NO JACK! But, the number of companies competing against LoJack in the vehicle recovery and tracking system is very small. The only ones I could find in the US are Mobilus and Mobileguardian. Mobileguardian has the caption NO JACK here https://www.mymobileguardian.com/why_NICB.asp.
You can get a process patent, and someone can produce a similar product using a different process and not violate your patent. The issue here is do we have other companies that do not provide the same, but similar products. The answer to that is yes. There are a large number of companies that provide this service. In fact there are companies that are there just to meet the satellite messaging requirements of these companies. Some prominent examples are Iridium, Orbcomm, and MSV.
Vehicle recovery systems generally rely on what the FCC calls Little Leo bands with uplink at 148-150 MHz, and downlinks at 137-138 MHz and 400-401 MHz. Orbcomm is the major player in the market and according to their website they do have a number of major customers who use their services for fleet tracking. Thus the service LoJack provides is not entirely unique.
Based on this I will say LoJack is an oligopoly: there are very few firms providing the same service as LoJack, but in the overall asset tracking system they do face serious competition. That market is competitive.