© R3 Cyber Security
How to survive the booming market of cybersecurity?
Esther Romero-Jordan // 17 April, 2018
The countdown to the RGPD is initiated and cybersecurity companies rub their hands.
In the new era Digital There is no company that does not contemplate in less or greater measure the use of a computer system for the management of its activity. The problem lies in the fact that 49% of companies with more than 250 employees have not yet become aware and do not prioritize the security of these systems.
In spite of this, the study “Trends in the cybersecurity market“Del INCIBE ensures that in 2018 a global turnover in the cybersecurity sector is expected to reach 79,292,000,000 euros. In addition The obligation to comply with the RGPD It will be an important business opportunity for cyber-security companies.
Will all of them know how to adapt to the market and evolve together with their competitors? Or will they die in the attempt?
Each market presents certain barriers of entry and permanence to its potential and current participants. In a market as dynamic as the technological one, these obstacles are at the moment at its highest point.
The opportunity they may have with the RGPD Cybersecurity entrepreneurs will be Minorada by the obstacles in their way both by the sector and by the competition. Among them we find:
- Economies of scale and scope Exploited by large groups entrenched in other sectors. They are companies capable of diversifying their activity in cybersecurity. They use these services both for their own benefit and for sale to third parties.
- A high initial investment So much to enter the market, as in more cutting-edge technologies. We are facing a technology-dependent sector. Therefore, it is important to invest in the latest computer equipment because of the speed of obsolescence. And this is not going to be cheap for the company.
- If you want to get a different service, a high investment in R & D + I. An innovative and different service in a market where all the services Loans are similar, it can mean success. In addition, if a leading company already existed, investment in R & D + I will mean positioning itself as a follower or specialist of this and not ending in oblivion.
- Lack of experience In the cybersecurity sector in the face of the most specialized and expert competitors. If this weakness is not addressed at first, it may end up as the complete failure of the company.
On the other hand, having consolidated companies in the sector. You will have to fight the prestige of your brand with a good competitive strategy. The actions that apply will serve to achieve a competitive advantage that achieves the success of the company.
Michael Porter’s 3 strategies applied to cybersecurity.
Porter (1982) Identifies three basic competitive strategies based on the competitive advantage they generate.
- Cost leadership. Based on the above, using the most cutting edge technologies. Reducing costs to make the process cheaper may mean a weakness in the face of competition. However, we can find a competitive advantage in achieving maximum efficiency and reducing the price of service against the market. Will attract a new Target Or customers who are not completely satisfied with the competition.
- Differentiation. In a market dominated by big companies, differentiating our services will mean a competitive advantage for small or new companies. It is a more “simple” way of getting the customer to loyalty and even accepting to pay more. This one would perceive a unique quality in our service against that of the competition. A more complete service, quality, innovation, customer support, etc. causing you to find no comparable substitute.
- Focus strategy. Applying to the area of cybersecurity, the company that chooses to exploit a competitive advantage of segmentation must pre-select the market or service to which it wants to focus. That is, here they must decide whether to focus on a type of client companies, in a market or a specific service line. This will get the competitive edge of specialization and efficiency in your sector.
In short, the success of a company will not only be based on the opportunities that can be found in its path. The resources and capacities it has to exploit must be comparable to the pressure exerted by the market, and in the case of cybersecurity, both competition and customers have a lot of power.
Esther Romero-Jordan | Finance Administrative In R3 CyberSecurity
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