Brian Ghilliotti

BES 218: Entrepreneurial Studies

SWOT Analysis of Major Private Security Firms
10/22/2016

Firm: G4S (Formerly Wackenhut)

Strengths
Has a well-established security service history at state, federal and corporate
levels.
Successfully aided the State of Florida in helping apprehend organized crime
leaders during the 1960s.
In 1993, State of Florida hired the firm again to provide security at all state
highway rest stops following the murder of British tourist.
Weaknesses
Involved in numerous scandals, including allegations of abuse and neglect of
prisoners during a privatization initiative in the corrections system.
Firm has had a public relations crisis after it was revealed that the Orlando
Night Club mass shooter (of June 12, 2016), Omar Mateen, was a former
employee.
Opportunities
A Renewed Cold War geopolitical environment creates opportunities for
government contracts to protect sensitive facilities.
Well established past relationship with government bodies in carrying out
security contracts, to include the Nevada testing sites of the US Atomic
Energy Commission.
Threats
Firm was fined $151,400 by Florida Department of Agriculture and Consumer
Services for misrepresenting psychological testing data on more than 1,500
forms over a ten year period, to include Omar Matteens employment
documentation.
May open the door to other lawsuits.
Sources
https://en.wikipedia.org/wiki/G4S_Secure_Solutions

Firm: Securitas
Strengths
Has considerable global reach, to include a Security Services North American
branch, a Security Services European branch, and a Security Services IberoAmerican branch.
Values based training.
Many specializations, to include background check services, cybersurveillance, and computer forensics.
Weaknesses
Has fired employees for reaching out to organized labor. Employee
dissatisfaction will lead to union agitation and pressures, potentially
disrupting services.
Managers have been accused of making employees work during lunch break
which in at least one case lead to a class action lawsuit against the firm in the
State of California. This supports union agitation.
If unwilling to provide competitive wages, which are in part set by contract
negotiations between promisor and promisee, firm may have difficulty in
finding qualified employees to fill positons related to its specialized functions
(background checks, computer forensics, etc.).
Opportunities

With a Renewed Cold War geopolitical environment, there will be many

opportunities for government contracts to protect sensitive facilities.
Securitas global reach makes it well positioned to secure these contracts.
Background check specialization services will also be in demand in Renewed
Cold War climate.

Threats
Employee disgruntlement leads to unionization agitation, resulting in
suppression efforts and related legal and publicity issues.
Low wages result in employees showing little interest in seeking promotions
and taking initiatives. They may leave for other firms that offer better
options.
Low wages result in private security officers not taking sensitive duties or
dangerous threats seriously.

Sources
http://privateofficer.org/class-action-lawsuit-filed-against-securitas-security-servicesprivateofficer-com/
https://en.wikipedia.org/wiki/Securitas_(Swedish_security_company)

Firm: Allied Universal Security Services

Strengths:

Created by recent merger of Allied Barton Security Services and Universal

Protection Services of America. This resulted in largest private security firm in
North America.
Focuses on recruitment of veterans and reservists, who tend to have strong
work ethics.
Specializes in localized response and national support.

Weaknesses:
Of the three firms reviewed, this firm seems least prepared to take advantage
of opportunities created by the Renewed Cold War.
If it wants to expand into skilled specializations that require hard to find
skilled employees to perform them, it must consider competitive wages when
negotiating contracts.
Opportunities:

Due to its size and resources, it can adopt to take advantage of these new
opportunities provided by Renewed Cold War conflict.
Focusing on hiring Reservists and Veterans is another factor that facilitates
quick adaption to new opportunities provided by the current geo-political
environment.

Threats:
Legal and publicity issues from controlling union pressures.
Unionization pressures may lead to strikes and disruption of services. Hurts
contract relationships.

Sources:
https://www.pehub.com/2016/08/3345790/
http://www.prnewswire.com/news-releases/alliedbarton-and-universal-services-ofamerica-finalize-merger-creating-the-leading-security-services-company-in-northamerica-300306813.html

Note: There does not seem to be small or even medium sized private security firms
in this market. It is dominated by large scale firms, a trend reinforced a series of
mergers. The most recent significant mergers involved the absorption of the smaller
Guardsmark with the larger Universal Protection Services. This merger was in turn
absorbed by AlliedBarton, which lead to the creation of Allied Universal Security
Services.