SECOM’s Core Competitive Advantages

We continue to leverage three competitive advantages—a powerful brand, a recurring
revenue–based business model and Group strengths—to respond to customers’ expectations
and ensure sustainable growth.

A powerful brandsatisfaction by providing services that exceed their expectations.

As Japan’s security services pioneer, we have consistently led theWe also have customer satisfaction staff, who visit customers inindustry, keeping abreast of society’s evolving needs by providing

person to furnish useful information and gain feedback, which

services and systems that deliver safety and peace of mind, as

we incorporate into our unceasing efforts to improve services

well as make life more comfortable and convenient. At present,and systems and grasp latent needs. We have applied our recur-

contracts for our domestic on-line commercial and home security

ring revenue–based business model to various SECOM Groupsystems number more than 2.35 million, and we continue toservices and will continue to reinvest in growth using cash gen-enjoy the leading share of the market. Our accumulated experi-

erated by these businesses to further enhance our competitiveence and know-how in the provision of services that deliveredge and ensure sustainable growth.

safety and peace of mind, together with our robust customer
base, have earned us a reputation for reliability and contributedGroup strengths

to the rise of the SECOM brand. Recognition of SECOM as theAt present, the SECOM business portfolio encompasses sevenleader of Japan’s security services industry and our outstanding

segments: security services, fire protection services, medical ser-growth potential position us well to secure and foster talented

vices, insurance services, geospatial information services, BPO

human resources and maintain an edge over the competition.

and ICT services, and real estate and other services. In all ofthese areas, we endeavor to resolve customers’ concerns by ral-A recurring revenue–based business model

lying SECOM Group strengths to provide a diverse range of ser-Our operating revenue is generated largely by recurring revenue–

vices and products. To date, we have not only strengthened

based businesses. In addition to cultivating new customers, weservices and products in each business and fortified collaboration

endeavor to ensure that existing customers are content to leave

across the Group, but also invested in M&As to further enhancecontracts in place. In our core on-line security systems business,

Group strengths. Looking ahead, we will continue working to

all employees—from emergency response personnel to sales,

expand our lineup of services to effectively respond to market

technology and administrative staff—work to increase customer

needs, thereby deepening our ties with customers.

Variable and Fixed Costs for On-Line Security Systems
Variable costs

Subscriber

Security equipment isprovided on a rental basis(SECOM assets)

New contract is secured

Increased customer satisfaction ensures thatthe contract continues over the long term
Diversification of services bolsters
per-customer income

Fixed costsusing
1 Alerttelecommunications circuits

SECOM emergency
3 Dispatch
response personnel

SECOM
Emergency
Depot(Approximately2,800 across Japan)

18

SECOM REPORT 2020

SECOM
2 Alertemergency
response personnel

SECOM
Control Center(Major locationsacross Japan)

Continuous income expansion

Reinvestment in growth
Increased competitiveness andsustainable growth