The award will be presented to Arad for its well-devised emerging market strategy. Frost & Sullivan noted that, acknowledging utilities’ lack of adequate infrastructure, expertise and finances, Arad strives to provide end users in emerging markets with customized water meters, meter-reading systems, and tailored training programs.
“Arad Group places the radio systems inside the meters, as opposed to its competitors’ strategy of placing them externally,” said Frost & Sullivan Research Analyst Neha Anna Thomas. “Internal placement eliminates the risk of theft or damage to the systems.”
Emerging markets play a significant role Arad’s expansion plans, as is evident from its intentions to establish footprints in countries such as Malaysia, Indonesia, Peru, Venezuela, and Colombia. These markets are likely to account for almost a third of the Arad’s revenues in the short term.
“Arad Group follows a step-by-step approach when establishing and expanding its business in emerging markets in order to circumvent the typical language and cultural barriers,” noted Thomas. “To begin with, it establishes local partnerships for sales and services. Once the level of activity in a particular market is satisfactory, Arad Group establishes a subsidiary there and in the process, transitions from indirect to direct operations.”
“We are honored to be awarded the lucrative Emerging Market Innovation Award for IT-based Water Management,” said Gabi Yankovitz, CEO of Arad Group. “Frost & Sullivan’s recognition validates our leading position in emerging markets and illustrates our commitment to utilizing innovation for the benefit of our customers.”
Each year, Frost & Sullivan presents this award to the company that that has demonstrated focus on growth through geographic expansion. The award recognizes the company’s ability to localize for emerging market requirements, using an inclusive approach, customer service, and unique ”go-to-market” models.
Frost & Sullivan Best Practices awards recognize companies in a variety of regional and global markets for demonstrating outstanding achievement and superior performance in areas such as leadership, technological innovation, customer service and strategic product development. Industry analysts compare market participants and measure performance through in-depth interviews, analysis and extensive secondary research to identify best practices in the industry.