Business Description:
Senetas Corporation Limited (SEN) is involved in development of high speed network encryption hardware products and technology designed to protect government and enterprise information. The company also offers security solutions and consulting services.

Strategy Analysis:
Senetas (SEN) anticipates that the demand for information security is being driven around the world by the increasing need for organisations to secure critical information, communications channels, and critical infrastructure, from both internal and external threat. The company believes demand for such services is independently correlated with prevailing business conditions. Senetas' relies heavily on its business-to-business relationships with resellers. It relies on investing in its proprietary developed encryption technology, and seeks to maintain its position in the market through R&D and JV alliances with business partners including Swiss-based id-Quantique, and US-based SafeNet. These two parties having an agreement with Senetas for distribution rights and technology sharing. Redistribution and reseller partners are company-specific depending on the geography. Earnings have been historically volatile however, due to the specialised nature of the product offerings, and thus vulnerability to contract agreements and terminations. Also the R&D required to maintain competitive advantage can conceivably be mimicked anywhere in the world should the patents and proprietary technology Senetas provides become outdated