AMT is built on the assumption that the management of information technology for business is like legal advice, accounting, graphic arts, and other bodies of knowledge, in that it is not inherently a do-it-yourself prospect.
Smart business people who aren't computer hobbyists need to find quality vendors of reliable hardware, software, service, and support and they need to use these quality vendors as they use their other professional service suppliers—as trusted allies. It serves its clients as a trusted ally, providing them with the loyalty of a business partner and the economics of an outside vendor.
We make sure that our clients have what they need in order to run their businesses at peak performance levels, with maximum efficiency and reliability.
AMT is a 10-year-old computer reseller with sales of $7 million per year, declining margins, and market pressure.
We make sure that our clients have what they need to run their businesses at peak performance levels, with maximum efficiency and reliability.
Since many of our information applications are mission-critical, we give our clients the confidence that we'll be there when they need us.We are also under pressure to improve our understanding of the direct-connect Internet and related communications.Finally, although we have a good command of desktop publishing, we are concerned about improving integrated fax, copier, printer, and voicemail technology into the computer system.We will not be able to compete in any effective way with the chains using boxes or products as appliances.We need to offer a real alliance that feels personal.Copies of our brochure and advertisements are attached as appendices.Of course, one of our first tasks will be to change the messaging of our literature to make sure we are selling the company, rather than the product.We are also starting to see that same trend with software...(add relevant information) To hold costs down as much as possible, we concentrate our purchasing with Hauser, which offers 30-day net terms and overnight shipping from the warehouse in Dayton.We need to continue to make sure our volume gives us negotiating strength.Although the chart titled "Past Financial Performance" shows that we've had healthy growth in sales, it also indicates declining gross margin and declining profits.The more detailed numbers in Table 2.2 include other indicators of some concern: As can be seen in the chart, the gross margin percentage has been declining steadily, and nventory turnover is getting steadily worse as well.