idea > logic > magic

How does one business get to own a major segment of the highly-competitive security industry market in a country like South Africa – where the daily reality of crime is a huge problem? And how to achieve this within a mostly captive, albeit grudge-purchase market?

ADT Security realized that in order to own a major foothold, they needed to deal with not only their major competition Chubb Security, but also with a plethora of small competitors out there.

It was somehow inevitable. They simply bought out all the minor players and small competition and re-branded them under their own ADT identity. And with this buy out came automatic access to their infrastructure and brand equity for these small businesses.

By doing this, ADT leveraged a two-fold advantage and arguably provided a win-win situation for all. The previously small alarm and security companies now had access to logistic support and the marketing infrastructure of a major international brand. And of course, ADT Security now had a footprint which included the market of their previous, small competitors.

And yes, this tactic obviously raises all sorts of questions around competitive practice. However, they contrived an innovative response to a situation that would have been difficult to address in almost any other way. If you can’t beat them, buy them…