Market Validation Report

Abstract

Recommendations and Conclusions Based on the foregoing, there is definitely a large and growing market for CTIS solutions in the US. Shin Seung will face significant competition and may be challenged by the time and expense in trying to “go it alone” in the US market. Our recommendations are as follows: 1. Identify and partner with an appropriate North America-based company that is in this space. Because CTIS is still viewed as a “niche” high-end market, it may be possible to partner with another vendor that has a complementary portfolio of products to a CTIS. Shin Seung may want to approach Pressure Systems International, Inc. 2. Consider a strategic partnership with a Korean vendor with branding in the US market. 3. US customers will require extensive independent testing, validation and field use trials with verified independent data, preferably by a US-based company. Shin Seung should be prepared to provide this data. 4. The US market may require a longer warranty than may be the norm in Korea and a demonstrable network for warranty/repair/replacement. 5. Given the size and nature of competitors who sell CTIS solutions, we would recommend Shin Seung carefully evaluate and bolster its Intellectual Property strategy. 6. Consider smaller pilot projects as a first step in market entry. We have identified in the body of this Report potential partners who have expressed an interest in running a pilot project. 7. Attend specific trade shows such as the Society of Automotive Engineers Commercial Trucking Expo in October of each year; Mid America, the largest heavy duty truck event in the world to be held in Louisville, KY in March 2015; Association of Equipment Dealers in Las Vegas; Military Expo in DC in October.