est possible return.Strong competitive forces in the IVHS market.Maturing market for AEI. Reliance on one product for critical revenue stream.Product portfolio not diversified.SWOT AnalysisCompany Strengths:Opportunity to broaden market in AEI because of their market dominance.Strong brand equity as the leader in transportation electronics.Ability to tap into the IVHS market potential.Foreign market presence through alliances in AEI and IVHS product lines.Established distribution channels in foreign markets.High debt capacity to finance future growth.$50 million in cash and marketable securities.Company Weaknesses:Lack of diversification within client base.Lack of focus within various IVHS market segments.Market reactors- not market leaders.Inability to secure contracts in vital markets.Declining revenue stream.Company Opportunities:Expansion of AEI market opportunity in intermodal transport.European railroad market 5 times larger than US marketMarket potential for IVHS in ATMS, ATIS, AVCS, APTS, and CVO. Expected changes within government policy aimed at federal road spending enabling the conversion of current highways into toll ways.Growing markets within Asia and Europe for IVHS ATMS product.Company Threats:Declining growth in AEI rail segment.Strong competition for IVHS market from strategic alliances between large corporations.Unable to determine cash flow generation in the IVHS market due to the uncertainty of the market potential. Development of several foreign programs similar to IVHS deterring possible entry into foreign markets.Alternative 1Diversify both AEI and IVHS market segments.The AEI rail market is maturing, causing revenues from this sector to shrink for Amtech. Thus, there is a need to diversify the marketing strategy associated with AEI and apply it to other segments of the shipping distribution cycle.There is a growing opportunity within the IVHS market due to changing policies within the government. In 1997, th...
