Avtech Systems Limited Presented by Syndicate 1 Entrepreneurship Eunice Ronoh, Anne Mwangi, Mary Luseka, Peter Mahinda, Ashford Karuga, Stan Ngure and Brian Lukwiya
Audio-visual Industry Analysis Company Overview Business Model Canvas for Avtech Systems Limited Overview of challenges facing the company Q & A Outline
Industry Analysis Political - Devolution - Conferences - Regulation - VAT - Terrorism threats Economic - Entry of Multi- nationals - Macroeconomic stability and Economic growth (4.7%) - EAC integration - Upward pressure on labour costs Social - Clustering of population in cities - Growing population Technological - Emerging technologies Key Competitors ProAV (E.A) Limited Pillar AV services Audio Visual Control Systems Com21 Teledata Briefcase companies
Company Overview Directors (2) General Manager Technical and Operations (16) Administration (4) Sales (4) Avtech Systems is a full service Audio Visual & Broadcast Company specializes in Projection, Sound, Presentation, Audio, Video and Studio Equipment for Rentals, Sales, Design, Repair, Installation and System Integration. Company started in 2001 Company Vision To exceed our clients expectations by employing unique, proven and highly successful approach to the A/V Industry
Company Overview Products and Services IT equipment Conference systems Security systems Public Address systems
Products
Business Model Canvas Key Partners -Suppliers – Owner Equipment Manufacturers (OEM) - Banks - Customers - Contractors and other professionals e.g. Architects, Quantity Surveyors 0 0 Key Activities - System integration - Installation and service contract - User training Key Resources - Staff (mainly technical staff) - CEO (creates 90% of new business) -Technical Knowledge & training - Finances Value Proposition Quality services through partnering with quality OEMs Through: -Quality Assurance staff - Professional advice - Product delivery and installation - Customer training - Solution customization - Integrated services - Technological changes and updates 0 0 Customer Relationships -After sales services -Collaborations - Invitations to product introductions/launch and upgrades Channels - Sales team - Referrals -Tenders - Product launch/upgrades - Low key promotions - Website -Partnership with professionals Customer Segments -Mass market -Government -Public sector agencies Revenue -Equipment sales (80% of revenue, 2009 estimate) -Installations -Training -Service/maintenance Cost Structure - Staff - Financing - Equipment Group#: Syndicate One -Storage and holding costs - Maintenance and service
Company challenges Marketing Challenges No clear Marketing strategy, plan or budget (including segmentation, targeting and positioning) Weak sales force (rely on 4 sales people who bring in less than 1% of sales annually) No clear communication and distribution channels Lack well trained marketing personnel to initiate and execute strategy No feedback from or follow up with clients Weak brand association
Final Working capital – No upfront payments yet running a large import business. Huge growth in sales can mitigate forex and interest charges Sales culture - Weak sales culture of the sales team. No deliberate strategy around marketing. Heavy reliance on owner for marketing effort “Despite the challenges encountered, Avtech system has exhibited an admirable growth story. The company is now looking to grow into the next level- towards sustained industry leadership.” Company challenges Tender terms – Tenders generally have long gestation periods Other Business Challenges