In keeping with growing customer interest in issues associated with power failures, manufacturers would do well to promote awareness of the need for regular service checks on installed products. UPS manufacturers are focusing on supplementary offerings such as servicing and maintenance of UPS units to secure their customer base and offset the effects of the decline in revenues during 2001-2002, states the analyst of this research service. This will assist in boosting the performance of the UPS services market, which is anticipated to accelerate the growth of the UPS hardware market.
Intensifying Competition from Smaller Independent UPS Manufacturers to Result in Innovative Marketing Strategies
Enhanced price consciousness and emerging visibility of smaller independent UPS companies are resulting in intensifying competition. Moreover, the influx of cheaper products from Asia is adversely affecting the profit margins of multinational UPS manufacturers. With manufacturers vying to improver their market share, the market is becoming increasingly consolidated, says the analyst. As a result, greater focus on products, services and customer relations will become imperative to gain a competitive edge in the market. Moreover, maintaining and enhancing sales channels portfolios, pursuing different distribution avenues and developing innovative marketing strategies are also likely to become necessary to improve prominence of UPS products.
Capturing UPS renewals as well as replacements and assessing customers’ requirements are expected to become crucial for manufacturers pursuing the expansion of their market presence. Besides, the ability to meet all power protection needs of customers will become vital for sustained growth. Accordingly, the market is expected to grow from £958.0 million in 2005 to £1.50 billion by 2012.
