e Clinton Administration is expected to announce new legislation aimed at revamping federal road expenditures. This new legislation in part would allow states to charge new tolls on existing interstate highways. However, there is stiff competition within this market, all of whom are hoping to take advantage of the projected $210 billion revenue stream over the next 20 years. If Amtech does not take an active role quickly, they will lose out on a potentially profitable revenue stream. ProsTake advantage of both markets.Maintain revenue base with AEI.Reap the benefits of entering into the fast growing IVHS market segment. ConsResources (financial and labor) are spread thin across all product lines.Unfocused strategy.Strong competition from large corporations in IVHS market.Implementation PlanUse the existing AEI rail technology to branch out into foreign markets.Increase revenues in the European market through currently established foreign alliances.Diversify AEI product line by extending its technology to the fleet and cargo ship industries.Integrate shipping distribution cycle.Continue to aggressively market the IVHS product line by targeting large municipalities. Competitively bid for future contracts.Offer state agencies a 90-day test phase designed to make toll collection safer and more efficient. Ensure compatibility amongst different toll road systems running through each state.Follow-Up Monthly Basis:Evaluate financial performance of each product. Compare financial performance to anticipated forecasts.Determine market share in AEI and IVHS markets.Evaluate stock price appreciation.Gauge market expectations and compare performance to market expectations. Alternative 2Diversify AEI market and divest IVHS division.Already well established in the AEI market, and the standard in the rail segment, Amtech has enormous potential in fleet, shipping, and security access markets. It became a market leader by combining innovation and tech...
