Individual Phase Report and Group Report Outline- Honeywell

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Honeywell Building Systems 2


Institutional Affiliat


Honeywell International Inc. is an American company that delivers technologically advanced range of solutions to private individuals, businesses and industries (Honeywell 2016). Honeywell company technology has the ability to solve tough issues regarding buildings that include safety issues, security systems, fire monitoring and energy efficiency. The company solves this issues based on the environment and the building setting. The setup involves proper integration while installing and maintaining a building system so as to have secure and safer environment. The paper seeks to explain the Honeywell demands, consumptions and the segmentation of customers. Also the paper seeks to explain how these technologies affect the customer demand and the regulations that involve the Blue Ocean Strategy.

Consumption Patterns

According to Colliers International (2016), there is an increase in demand of office buildings in Australia. Also, there is an increase in business startup that has enhanced the energy efficiency focus in the new buildings. Many industries are concerned with the power usage as they cost push their expenditure high. The main aim of many industries is to reduce the energy usage. Honeywell provides a solution by the use of ‘Smart Buildings’. The method costs less hence allowing many companies to have less cost thus decreasing budget that could be incurred in electric usage (Honeywell Energy Manager 2009).

The demand of office space has increased by 22% in 2016 that is according to Colliers International (2016). The demand has mainly been from the small businesses where they need to deliver services to their customers. Honeywell Building Solutions help these small businesses among others to have building management system where the companies are able to minimize the energy usage. The company also helps to reduce the third party involvement or implications.

Consumer Segmentation

The Honeywell has three business segments. The first one is the Aerospace segment which concentrates on turbo chargers, lighting systems, application, propulsion and maintenance for energy systems. The second one is Automation and control segment that deals with installing buildings and homes with security, temperature and fire control systems. The third one is performance materials and technology segment that deals with developing and refining technologically advanced materials. The consumers are classified in three profiles (Honeywell 2016).

The first profile is the airport which is the toughest customers to the Honeywell Company. There is complexity when it comes to the control room and linking it to the building management system. There is also complexity in increasing the security. The company provides smart terminals, landside and the air methods to help in improving security, efficiency and safety for the passengers and staff in the arrival and departure of the airport.

The second is the government which is also hard for the Honeywell l Company to make improvements on because of the increase in mandates and priorities of the government entities. Also, government entities have many requirements regarding infrastructure solutions and the energy efficiency (Black 2016). The company offers solutions to the government on the operational problems and waste of energy although the company faces difficulty in providing productivity efficiency.

The third is the education where Honeywell Company focuses on high schools and campus. Both the high school and the campus have different needs when it comes to building environment. The major concerns in the aging of the infrastructure and also the ability concerns of the schools to meet the required budget. Campus focus in solving energy concerns to have a competitive edge while high schools aim at security problems, energy costs, pollution and the limited budgets It is hard but necessary for the high schools to provide a safe studying environment while aiming at security , energy efficiency and health concerns.

The other profiles include the public events and stadia that include sports and concerts. Honeywell provides a smooth operation in these venues and also focuses on energy efficiency. The company offers safety, and high quality environment.

Environmental Impacts on Demand

Honeywell is the leading company in the building management systems and its selling point is the technology. Therefore, the company has to keep on improving its technology and coming up with new technology so as to have operational efficiency while at the same time reducing the environment damage. So the Honeywell Company has decided to integrate the designs and facilities with the third party systems. Honeywell face the most challenges when it comes to energy saving. It is hard to come up with the most effective method when dealing with energy and at the same time observing the budget. The main aim of Honeywell is to provide energy strategy that reduces the client’s costs. The company has the ability to meet the customer needs and provide safety solutions in the building management programs that include HVAC. The Honeywell face challenges in the environmental laws that influences the cost of structures to be high thus affecting the demands of the consumers and the company’s profitability levels. Also the changes in foreign environmental laws affect the company when it comes to purchasing the raw materials and the cost of structure (Honeywell International Inc. 2016).

Porter’s 5 Forces: Buyer Power

The 5 forces help a company investigate and know the profitability levels as well as the competitiveness in the organization. According to Wilkinson (2013), the customer bargaining power pushes a business under pressure and that makes companies produce quality products and services with low prices. When it comes to Honeywell Company, the customer bargaining power is low. This is because the company has three main segments and thus the customers are broad. Also, the company offers quality solutions that are very different from the competitors. Thus, these customers cannot put Honeywell Company on pressure (Honeywell Annual Report 2015).

Recently Honeywell Company has come up with fuel facility which is renewable and can move to Blue Ocean. The concept is new and capable of attracting customers in Australia. The concept is capable of transferring low-value forest residues to high-value green liquid. The purpose of this is to bring heat the temperature indoors in industries and offices (Envergent Technology LLC 2016).


Black, S 2016,A Brief Overview of Honeywell Automation and Control Solutions, viewed 1 October 2016, <>.

CSIMarket 2016, Honeywell International Inc. Segments, viewed 1 October 2016, <>.

Colliers International 2016, Colliers International office demand index quarter two twenty sixteen, viewed 1 October 2016, <>.

Envergent Technology LLC 2016, Honeywell’s Envergent RTP® Technology To Be Used In New Renewable Fuels Facility In Quebec, Honeywell, viewed 1 October 2016, <>.

Honeywell 2016, About Honeywell Building Solutions: Honeywell Building Solutions, viewed 1 October 2016, <>.

Honeywell Annual Report 2015, Honeywell 2015 annual report, viewed 1 October 2016, <