Alarm Force the launch of Alarm Fog Harvard Case Solution & Analysis

Alarm Force the launch of Alarm Fog Case Solution


The case is all about Alarm Force Company, a parent company of Frisco Bay Industries, which holds a dominant position in Canada Security Market. The company had already conquered the market through thedevelopment of highly technical and useful developments for the security of households and residential. The main product is Alarm Voice 2000 that would work as two-way interaction. Moreover, many additional devices that would be attached to main devices were developed such as Alarm Plus and Pocket Size Alarm Voice. However, thecompany is planning to introduce a new product named Alarm Fog that would add value to its existing product.

Keywords:Alarm Voice, Devices.


Alarm Force Industriesis one of the parent companies of Frisco Bay Industries, which is one of the dominant industriesof the Canadian security market.The company manufactures and sells security systems to banks and other corporate companies. After experiencing 18 years in the same market, the CEO Matlin analyzed the sales and promotion trends of household security, and thus, a parent company with the name of AlarmForce was developed.

The goal of the company was to capture the complete domestic and household market of Canada and United States that will provide complete household security. Moreover, the CEO wished to achieve his goal in a very cost effective manner. To seek higher business opportunities, the CEO planned to sell AlarmForce franchises to different entrepreneurs, who wouldapply different strategies and would help the company to achieve its goal in theleast possible time. However, after experiencing this strategy for few years, the CEO and managers planned to alter their strategy and buy back all of its franchises, as some of the franchises were not performing well, especially they were not facilitating appropriate customer service.

After buying back most of its franchises, thecompany was able to generate higher profits with a better margin of operating cash flows. Moreover, the company’s debt ratio reached to less than one and many credit facilities were unused and were not needed. Thus, there was a major improvement in the overall financials of the company.

Case Synopsis

The research and knowledge of the CEO and managers showed that the technology that was available for the households was not enough capable and secure for the living people and wouldn’t save them from theftand burglary. The false alarms and monitored systemsare not capable and would provide a complete chance for the thieves to do their work.

As a result, the managers and IT skilled people generated the idea of developing an interactive system that would not only assure the burglarybeing monitored but also inform the police about the incident. A two-way interaction service will provide security to households by interacting directly withthe police and security departments. On the other hand, police and security guard won’t be relying on thesiren as a false alarm and would reach to the incident place as soon as possible.

By late 1990, Alarm Voice was developed as a two-wayinteractionsecurity system that wasinstalled in the customer’s phone. However, after some time, the customers felt the threat of privacy innervation. Consequently, the company planned to make advertising and promotional activities to teach the customers about the product and its benefits and the need formonitoring and its outcomes. Therefore, thecompany was doing traditional advertisement on television.

The companyplanned to introduce additionalproductsthat would be connected to the main device.Theintroduction ofAlarm Plus which will work as a wireless radio, even when thetelephone line is not working. In addition, pocket size Alarm Voice was also developed which would work as an extra security device for the people who work at night.

The customer base of AlarmForce increased to 30,000 accounts which included83% of householdresidential whereas remaining 17% consistedof commercial clients.The company has always invested a higher amount onadvertisement and promotion of its products that includedtraditional promoting through radio and television. Moreover, the bill boards and print media werealso used for products promotion. However, the customer dealing was done throughtelephone.

Alarm Force the launch of Alarm Fog Harvard Case Solution & Analysis


The management of AlarmForce planned to enter into anew market by innovating a new productcalled Alarm Fog. This product facilitated customers withadditional security. However, the engineers and developers had pointed out many flaws and technicalities. After a year, the engineers came up with the idea of developing the same productwithout any technical problem.

On the contrary, there are many problems and opportunities that are affiliated with the new development such as opportunity of being the first mover.Whereas the problem was that would the customer like it at a higher cost.


SWOT analysis:


  • The company has astrong market position and market share from the development of strong market product under the name of Alarm Force.
  • The company has substantial brand equity in the market which has made it attract the shareholders.
  • The company is financially strong, giving it the opportunity to expand into other areas simultaneously.
  • The company has strong brand value and brand image in the mind of the customer, which makes it reside on the mind of the customer..............

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