Q: 5i as well as other industry experts have identified Zedcor as having good potential for sustainable, long term double digit growth. I've recently visited Zedcor's website to have a look at the services they provide. While Zedcor has been growing revenue and earnings I am struggling to see where their technology and security services are different from other competitors. So my question is this: what is Zedcor's sustainable competitive advantage and are there barriers to entry into their marketplace or is it that this is just an unserved area for the kind of security services that Zedcor offers?
5i Research Answer:
We think it is more of a first mover type of advantage at this stage, and then establishing themselves as a trusted company to provide these products and services. It is also a market where there is enough space for more than one company so while the barriers to entry might be a bit lower, the high growth rate helps provide a bit of a cushion against incoming competition.