Case Study $$ IBIS Technologies

Providing security for Very Important Persons $($VIPS$)-$range from government officials to movie stars$-$ when they appear in public, typically means deploying protective barriers such a concrete walls or Plexiglass shields.

A new product aims to replace these obstructive protection devices. IBIS Technologies, a three$-$year$-$old company based in Butler, California, has developed an Instantaneous Personal Protection System $($IPPS$).$ The IPPS is a cross between an aircraft ejection seat and a car air bag. In less time than a car can register the sound of gunfire, the IPPS surrounds the intended victim with a bullet proof shield. This new security device can sit on the floor next to the VIP or terrorist target, or it can be used a security guard in a busy lobby, disguised as a set of decorative planters.

How does IPPS work? A radar sensor detects incoming objects $($such as bullets, knives or missiles$)$ and triggers an inflated air bag. The bullet$-$proof material traps the projectile like a baseball glove folding around a ball. In demonstrations, the shield has deployed quickly enough to survive assaults from a $\mathrm{.}22-$caiber through $\mathrm{.}44-$caliber magnum rounds, submachine guns, shotgun blasts at close range, and a knife$-$wielding attacker. Its detection range is about $150$ feet. The device can also be fired by radio control. The fully installed system weighs $400$ pounds.

The IPPS technology can be extended to other applications, such as protecting vehicle and securing windows on buildings. A key challenge will be the ability to detect electronic signals that might set of the system accidentally, such as cellular phone or aircraft radar. Despite these challenges, IBIS Technologies Corporation has been selected as a top technology stock pick by several hedge fund managers a company that will do very well in the future.

Question: What would you recommend as a suitable target market for IBIS Technology? Why?