nology. Amtech needs to focus its attention even more intensively in the AEI market in order to survive in the future.The IVHS market is extremely competitive, leading to the likelihood of a price war which will inevitably lower margins. There are numerous competitors within this market compared to AEI. Many of the competitors are large corporations with the ability to pursue the strategy of absorbing great losses in order to gain market share. Amtech will have greater difficulty in finding an immediate boost to the revenue stream.ProsLump sum payment from IVHS divestiture boosts bottom line. Frees up capital formerly devoted to R&D for IVHS technology to broaden AEI product line.Focus resources by increasing R&D.Integration of product shipping cycle through ships, trucks, rail (intermodal market control).Strengthen brand image in AEI.Increase market share for AEI products.European railroad market opportunity 5 times larger than domestic market.Association of American Railroads standards were adopted as European standard in 1993.Domestic market leader.ConsMaturing domestic market for AEI railroad product lineLost opportunity in IVHS market-domestic and internationalCompanies revenue solely dependent upon AEI product line.Higher product portfolio risk.Implementation PlanFinding a buyer for the IVHS division. Approach competitors who are looking to increase market share and have the ability to fund the acquisition. The capital generated by this sale will go to fund the diversification of the AEI market through intermodal transfer.The intermodal transfer will consist of a large network involving shipment of products via water, roadways and railway.The diversification of the AEI market through intermodal transfer will allow Amtech to become a dominant player not only in the AEI rail division, but also in the entire product delivery cycle for foreign and domestically produced goods.Follow-up PlanMonthly Basis:Evaluation of all foreign al...
