AEI technology :: Essays Papers

AEI technologyWho is Amtech?Amtech is a pi hotshoter in electronics transportation systems. The conjunction began in 1983 when the US Department of Agriculture released the patent for an 11-year old communicate beam system. The first use of this technology was in the field of breed monitoring. This later evolved into traffic and inventory management. Today, Amtech focuses its research and technology development on two market place segments Automatic Equipment Identification (AEI) and Intelligent Vehicle road Systems (IVHS). AEI uses radio beams to track inventory by scanning an electronic judge 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 through a tollbooth.Amtech has established itself as the AEI industry leader by becoming the American Association of Railroads mandated standard. On the other hand, the IVHS market is filled with competitors competing for electronic to ll contracts throughout the United States. AEI and IVHS are in place in both domestic 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 railroad line companies, and the market isnt showing much growth potential. Also, they have been thwarted in securing future contracts. Their stock price has witnessed a decrease from $33 to 10 in a span of three months due to the antepast of decreased silver flow. Pressure has been mounting from the shareholders for management to take exertion to boost the stock price back to levels of expected growth. Amtech has the unique predicament of being caught in markets that are neither growing nor mature nice to provide a steady or growing revenue stream. Aspects of the botherHave yet to determine proper allocation of resources for best come-at-able return. sozzled 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. king to tap into the IVHS market potential.Foreign market presence through alliances in AEI and IVHS product lines.Established distribution channels in foreign markets. exalted debt capacity to finance future growth.$50 million in cash and marketable securities.