AEI technology :: Essays Papers

AEI technologyWho is Amtech?Amtech is a pi integrityer in electronics transportation systems. The follow began in 1983 when the US Department of Agriculture released the patent for an 11-year old radio receiver beam system. The first use of this technology was in the field of livestock monitoring. This later evolved into traffic and inventory management. Today, Amtech focuses its research and technology development on two foodstuff segments Automatic Equipment Identification (AEI) and Intelligent Vehicle alley Systems (IVHS). AEI uses radio beams to track inventory by scanning an electronic just the ticket that is attached to the car or cargo unit. IVHS was a by-product of AEI, in that it uses tags to automatically deduct toll payment as vehicles pass with a tollbooth.Amtech has established itself as the AEI industry leader by befitting the American Association of Railroads mandated standard. On the other hand, the IVHS market is filled with competitors competing for elec tronic toll contracts throughout the United States. AEI and IVHS are in place in both interior(prenominal) and foreign markets. In the domestic market, Amtech is partnering with Motorola. Its pursuing the foreign markets through alliances with Alcatel Amtech in Europe, Mitsubishi in Asia, and Sino-Amtech in China.Whats the Problem?Amtech has almost completed delivery of AEI system tags to the hale companies, and the market isnt showing much growth potential. Also, they have been foiled in securing future contracts. Their stock price has witnessed a decrease from $33 to 10 in a span of three months due to the presentiment of decreased hard currency flow. Pressure has been mounting from the shareholders for management to take body process to boost the stock price back to levels of expected growth. Amtech has the unique quandary of being caught in markets that are neither growing nor mature comme il faut to provide a steady or growing revenue stream. Aspects of the chor eHave yet to determine proper allocation of resources for best viable return. fuddled competitive forces in the IVHS market.Maturing market for AEI. Reliance on one product for critical revenue stream.Product portfolio not diversified.SWOT analysisCompany StrengthsOpportunity to broaden market in AEI because of their market dominance.Strong brand equity as the leader in transportation electronics. tycoon to tap into the IVHS market potential.Foreign market presence through alliances in AEI and IVHS product lines.Established distribution channels in foreign markets. risque debt capacity to finance future growth.$50 million in cash and marketable securities.