Vectron Systems AG

Vectron Systems AG
Opportunities
� International business expansion: Although the company still has to
establish a more sophisticated international distribution network, the
geographic expansion of its business activities will result in higher
revenues in the future
� Product and customer diversification: With new innovations and value
adding product improvement Vectron intends to tap new niche and price
segments. Moreover, the company aims put a stronger emphasis on the
acquisition of key accounts
� The introduction of the “Fiskalspeicher” could result in significant
growth prospects in the mid-term
� Growth prospects arising from market consolidation: Since demand is
Threats
becoming more sophisticated most of the small regional operating
companies face serious problems to deliver appropriate product solutions.
Vectron as a technologically and financially strong company could benefit
from the squeeze out of these small market players
� Exposure to macroeconomic environment: The company´s targeted
customers have business models which are sensitive to general economic
conditions. In times of economic downturn most of these customers hold
back their investments
� Risk of deflating prices: In premium and mid-range market segments the
price development has been quite stable over the last years. However,
given the competitive business environment and tough economic
conditions the risk of a margin diluting price competition could become a
realistic scenario
� Risk associated to legal changes as well as product warranties
� Dependency on distribution partners: Vectron commercialises its
products via distribution partners a “bad” relationship with distributors
would affect the company´s business activities significantly
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