june, 2003 arusha, tanzania move towards the future: to build a sustainable business, a&a needs...

June, 2003Arusha, Tanzania

Move towards the future:To build a sustainable business, A&A needs to realize growth with

a more commercial approach

A&A computers

CONFIDENTIAL

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CONFIDENTIAL

To build a sustainable business, A&A needs to realize growth with a more commercial approach

1 There is potential to grow and A&A needs to react on this

2 A&A has a good proposition to realize growth, however a more commercial approach is needed

3 To realize growth A&A needs to improve and expand the organization

4 Although management is generally aware of the weak areas in its operations, A&A has to make sure improvements are implemented

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1 There is potential to grow and A&A needs to react on this

1.1 The IT market in Tanzania is still growing

1.2 Customer interviews show that, although some companies have reached their preferred IT level, there are still a lot of sales opportunities for coming year

1.3 Arusha is moving toward the third phase of the technology life cycle, which means that competition is growing and customers are getting more mature

1.4 A&A needs to grow to be able to build a sustainable business

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1.1 The IT market in Tanzania is still growing

The GDP of Tanzania has been growing steadily at a rate above 5% for the last 3 years

Although most of the money is still made in agriculture, the share of the service and tourism industries are increasing (service is for instance already 40% of the GDP). These are areas where IT plays an important role

The amount of personal computers per 1,000 inhabitants has doubled over the last 5 years, and would still triple if it where to reach sub Saharan average. Government action so far has been aimed at promoting this

Internet use is growing rapidly, with over a thousand internet café’s and an exponential growth in internet users

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1.2 Customer interviews show that, although some companies have reached their preferred IT level, there are still a lot of sales opportunities for coming year

IT level

Company size

Still growing significantly

80% realized; mainly replacement & innovation and some expansion

Maximum reached; only replacements

Small (up to 5 computers)

3 1 1

Medium ( 5 – 20 computers)

2 5 1

Large (> 20 computers)

2 1 1

Buying need for coming year (input from interviews): (1)

Around 100 computers

5 printers

2 lap tops

And numerous accessories

1) See appendix B for complete overview of sales opportunities per customer; see also Excel sheet “survey results”

The majority of the companies is still growing in IT use, a large part of which is still expecting to grow

significantly

Expected growth for interviewed customers

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1.3 Arusha is moving toward the third phase of the technology life cycle, which means that competition is growing and customers are getting more mature

Phase 1: introduction

Phase 2: early growth

Phase 3: late growth

Phase 4: maturity

Learning phase Process of “trail &

error” Low threshold to

enter Dependent on

local market and infrastructure

Sufficient demand needed

Embedding new technologies in society

Further developing of technologies

More interaction between supplier and client

New entries on the market

Standardization of knowledge

All necessary conditions in place

Focus on growth and market share

Market is not saturated yet

Difficult new entry Capital and

management skills needed to realize growth

Saturated market Growth by taking

market share from competition

High fixed cost for entry, but all infrastructure and knowledge in place

Advantage for company that can best optimize costs

Arusha IT market

Technology life cycle

Characteristics:

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1.4 A&A needs to grow to be able to build a sustainable business

Phase 1: introduction

Phase 2: early growth

Phase 3: late growth

Phase 4: maturity

Arusha IT market

Arusha IT market cycle

A&A entered the market in phase I as an “innovator”, with relatively low starting capital but with the necessary knowledge and skills and at a time that the local circumstances where right:

Government stimulation by eliminating taxes on IT products

Arrival of large international institutes like the UN

Growth in Tourism Growth in local demand for IT

The industry in Arusha went trough a phase II, where many “imitators” entered the market. They where able to make use of the conditions that where created by the early entries. These new entries had the right starting capital, but the question now is if they have the right knowledge and skills

Currently the market moves toward phase III. The market is not saturated yet and both demand and supply are still growing. Growth and market share become most important, for which capital and management skills are needed. Because of increasing competition and maturing of the client, quality and service become more important. Entering now will be difficult.To survive in this phase, A&A needs to be aware of these dynamics and steer towards enhancing its image and market share, by knowing and delivering what the client wants and investing there where needed to achieve necessary scale. If a strong position in this phase is secured, entry of phase I technologies can be considered, but only if there are synergies with the existing structure, skills, infrastructure and network of A&A

In the long term the market will mature and become saturated. At that time it becomes important to consolidate and optimize costs as much as possible. Growth can only be established by pushing others out of the market, so price becomes more important. Competition can even increase because new entries with large starting capital can benefit from the existing infrastructure and skills. Actions to take in are:

Maximize use of existing infrastructure and technologies

Reduce investments to a minimum Create lean and mean organization and processes Find new ways to capitalize on acquired know-how Look into new technologies and innovations (start

again in phase I or II)

I II III

IV

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2 A&A has a good proposition to realize growth, however a more commercial approach is needed

2.1 In general customers are very loyal to A&A, mainly because the company is considered very reliable

2.2 All wanted services, except for some specialized ones, are being provided by A&A

2.3 A&A should develop a focused market approach for all its different services, taking the long term potential of each service into account

2.4 Unlike Europe there is still a lot of potential for direct marketing

2.5 Customer relationship management is becoming increasingly important

2.6 Segmenting (potential) customers, can help A&A develop a sales strategy that sets priorities and focuses on customers that really contribute to the business

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2.1 In general customers are very loyal to A&A, mainly because the company is considered very reliable

Exclusively at A&A

Sometimes somewhere else because of price

Sometimes somewhere else because A&A doesn’t have it

10 4 3

Most customers buy exclusively at A&A Some do compare prices, but choose

A&A, usually for the price - quality/ service balance

Reasons to buy elsewhere Cheaper A&A doesn’t have it Tender

Where do customers buy? (1)

Reliability or trust

Alex/ Dutch management

Quality of (after sales) service

Quality – price balance

Knowledge Shop/ selection

10 10 9 8 7 3

Why do they buy at A&A? (top 5) (2)

The open, direct way of doing business is generally appreciated

This results in people trusting A&A Customers appreciate the extra quality

both of products and services, for which they are prepared to pay a premium

Also: The general opinion on the company is

good; the named weaknesses of A&A are much more based on incidents, with a longer list and not one that is widely recognized (max 5 votes) (2)

1) Out of 17; see also Excel sheet “survey results”2) More than one answer could be given; see for complete list appendix C

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2.2 All wanted services, except for some specialized ones, are being provided by A&A

None Common goods with not enough demand to have on stock, but which could be ordered (1)

Faster internet

Wireless equipment

Industry specific products (hard- & software)

Electronic payments

Larger e-mail possibilities

4 6 4 2 4 1 1

In general all services and products needed, can be obtained at A&A, although sometimes they are not in stock and have to be ordered

People are eager to get ahead in internet and e-mail use, with faster and newer equipment and software (like wireless and electronic payments)

Some industry specific products might be needed, but this is a market usually served by specialized suppliers (like security industry gadgets and production machinery software)

Additional services customers want

Note More then one answer could be given; see also Excel sheet “survey results”1) Items: lap top, plotter, auto cad, lotus notes and extra languages for Microsoft software

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2.3 A&A should develop a focused market approach for all its different services, taking the long term potential of each service into account

A. Sales and repair are highly complementary and form the backbone of A&A and should therefore be used as most important proposition to approach the market

B. Some market exists for preventive maintenance, although it’s the first activity companies start doing themselves

C. There is definitely a market for customer visits, a service most customers are prepared to pay for

D. There are some opportunities to improve the cross selling of training

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A. Sales and repair are highly complementary and form the backbone of A&A and should therefore be used as most important proposition to approach the market

All interviewed customers buy AND have (part of) their repairs done at A&A

Sales currently contributes by far the largest part to the result of A&A

The number of repair jobs has been steadily and significantly increasing over the last couple of years (from 500 in 1997 to 2000 in 2002), and will continue to do so as a result of increased computer use and good reputation (prognoses 2003 is 2500)

Almost all reasons why customers go to A&A have to do with sales and/or after sales service (see 2.1). In general it’s the factor that differentiates them from the competition and is therefore a major selling point

Significant growth for A&A can only be realized in these two

areas. When approaching the market these should therefore

get most focus, whereby the assets that differentiate A&A

from the competition (quality of products and service) should be

maximally exploited

Note see also excel sheet “survey results”

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B. Some market exists for preventive maintenance, although it’s the first activity companies start doing themselves

Not done and interested (2)

Done by A&A on contract basis

Done by A&A, but no contract

Done by others

Done by themselves

3 5 3 2 4

50% of the interviewed customers use A&A for preventive maintenance

In most cases A&A informs them when an appointment needs to de made

However, in some cases it is not formalized, although customers would generally like it to be (e.g. get feedback at the end of the year what was realized)

The customers that do not do preventive maintenance yet are usually small companies, but all are interested in it

25% says it has the knowledge and skill to do the work themselves. These are large as well as small companies

How is preventive maintenance done? (1)

1) Out of 17; see also excel sheet “survey results”2) Companies with interest in preventive maintenace: ELTC, Arusha Times and Sacon

A&A should embed the execution of preventive maintenance, and the feedback to customers on this, more

A&A should try and increase the share of preventive maintenance in the total workload, because it is a good way of evening out the peaks in repairs

In approaching the market for this service, A&A should focus on its existing customers, actively starting with the ones that have shown interest

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C. There is definitely a market for customer visits, a service most customers are prepared to pay for

No Yes No preference

3 11 3

The majority (65%) prefers visits when it’s technically possible to fix it on location (that would for most be more then is done now), but the technician has to come in reasonable time

They prefer visits because: It’s more convenient The technician only works on that problem

when he’s there (goes faster) The client can watch the technician and learn

for next time The ones that prefer taking it in, do that because:

They’re close to A&A They don’t want the technician to see/ be in

their office The shop is cheaper

Do you prefer customer visits, even if it would mean extra cost (1)

1) Out of 17; see also excel sheet “survey results”

A&A should fill this demand for visits as a service to customers, but also as a business opportunity that will lead to growth

To do this A&A has to define a procedure concerning:

A clear price structure for visits (km and extra time)

A response time in which the technician will be at customer

What the customer has to provide (clear symptom description, direct access for technician when he arrives, etc.)

With which symptoms it’s possible and when it has to be taken into the shop anyway

An preferred technician per customer (for large customers)

This (renewed) service should then be communicated on broad scale (e.g. e-mail to all customers)

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D. There are some opportunities to improve the cross selling of training

Make use of A&A training

Don’t know A&A offers training

Indicate interest for training (1)

4 5 4

Only 4 customers indicate that they make use of A&As training services and 5 customers don’t even mention training among the services they know A&A provides

4 customers indicate that A&A could improve it’s sales of (refreshment) courses

It seems that especially in African run companies people think the knowledge level of IT of their own personnel could be improved a lot

Training

Note See also excel sheet “survey results”1) customers: EAC, ABB, Sacon and Davanu

Training courses could be marketed more aggressively. For instance:

Publish schedule in newsletterActively approach customers that buy new

computer or softwareActively approach customers that often

have software problems or questions

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2.4 Unlike Europe there is still a lot of potential for direct marketing

Only one customer indicates not to be interested in the newsletter and all customers that don’t receive the newsletter would like to

The majority of the customers (12) indicate that they are dependent on A&A or other, ad hoc, input to keep informed on IT developments, while 11 admit there are subjects they would like to hear more about

Subjects customers would like to hear more about usually have to do with new gadgets and software, which offers a great sales opportunity

Customers here are clearly still looking for more information and are not yet overloaded with bulletins, newsletters and special offers. Also in general they are receptive for new gadgets.

This offers great sales opportunities through direct marketing channels like newsletters or special offer bulletins.

A&A should:

Enlarge its mailing list (e-mail) and also find ways to include potential customers in this

Send regular virus warnings as a service and a name reminder/ recognition tool

Send newsletter, focused on providing information, every month to a large (potential) customer base

Send special offers bulletins to regular customers every 2/3 months, to get them into the shop


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2.5 Customer relationship management is becoming increasingly important

Competition is growing and becoming more aggressive in acquiring, especially large accounts

Customers are becoming more demanding(faster service, faster internet, wider range of products, timely and accurate status reports, etc.)

The majority indicates that (after sales) service is a major reason to buy at a certain place, because the customer feels he’s being listened to and appreciated

3 of the larger companies (all African run) indicate that A&A could improve it’s customer relationship, also because competition is actively pursuing the accounts of these clients (ABB, EAC and RAS)

The Western run companies indicate that it is exactly what Alex is good at and that’s the reason they’re customers, but that has largely to do with being “one of them”

To beat the competition and to keep increasingly demanding customers happy, A&A needs to develop more active customer relationship management, especially with the larger, African run companies, because there there’s not the automatic advantage of being “one of them”

Activities that could be done with important customers:

Periodical meeting to discuss IT needs and developments (like account visits)

Actively inform customers on developments in their industry/ work field

Supply customer with a list of for them interesting internet sites to keep informed

…


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2.6 Segmenting (potential) customers, can help A&A develop a sales strategy that sets priorities and focuses on customers that really contribute to the business

Gro

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cont

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to

A&

ACurrent

contribution to A&A

In setting priorities, take the importance of IT for the business into account:

Step 1: Segment all customers and also potential customers

Step 2: Map all companies and set priorities to determine strategy

Nr Company IT importance Size now Potential

1 Rotian Supportive Medium Small

2 Stiggy’s Beneficial Small Small

3 Redio HM Crucial Large Small/ med

4 ANM Crucial Large Med/ large

5 ELTC Supportive Medium Small

6 Popvriend Supportive Medium Small

7 KK security Crucial Medium Large

8 Wegs Supportive Medium Small

9 Moivaro Supportive Medium Small

10 Arusha times Crucial Small Small

11 EAC Crucial Medium Large

12 Braeburn Supportive Medium Medium

13 ABB Crucial Large Large

14 Sacon supportive Small Small

15 Davanu Crucial Small Large

16 RAS Crucial Medium Med/ large

17 AON Crucial Small Medium

Small Large

Small

Large

Companies for whom IT is supportive: medium probability of spending Companies for whom IT is beneficial: low probability of spending

Companies for whom IT is crucial: high probability of spending

Retain & make agent Maintain relationship Supply consistent good

service and quality Inform regularly about

products & services

Retain & grow Strengthen relationship Offer extra service Active marketing Come with suggestions

and solutions

Make agent Supply consistent good service and quality Inform regularly about products & services

Grow/ acquire Acquire new business by building strong relationship Active marketing Come with suggestions and solutions

Draft

1

2

3

4

5

6

7

89

10

11

12

13

14

15

1617

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3 To realize and support growth, A&A needs to improve and expand its organization

3.1 A&As major strength is also its major weakness: the whole company is build on one person, so to spread the risk and actually realize growth while maintaining the quality level, a second manager with a commercial focus is needed

3.2 The frequent changes in personnel results in loss of quality, so a personnel policy, aimed at raising the quality level and increase the employee commitment while realizing growth, is needed

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3.1 A&As major strength is also its major weakness: the whole company is build on one person, so to spread the risk and actually realize growth while maintaining the quality level, a second manager with a commercial focus is needed

Most customers refer to Alex rather then A&A and 3 of them specifically state the whole company is build on Alex

Staff changes relatively frequent, which puts pressure on the quality the staff can deliver

Alex has to manage the whole company, while specific areas, like the workshop, could use more attention to raise the overall quality and efficiency level (by: optimizing work division, creating a certain sense of time pressure and getting good insight in development needs of employees) .

To grow, an active sales approach towards (possible) customers is needed. Alex cannot do that, run the whole company and at the same time raise the quality level and efficiency of the workshop

Currently there’s no one in the organization that can grow to such a role in the near future

A&A should start an active search for a commercial manager to operate next to Alex. Main tasks would be bringing in new business (large clients) and developing customer relations with existing (large) clients

Note see also excel sheet “survey results” and appendix A on the internal interview results

There are two possible ways of realizing this, but the second option should be explored first:

1. Bring someone in but this has proven to be difficult and the current size is not really able to support two managers

2. A merger or acquisitionthis has as advantages that it brings in extra business at once. This will need investment and a careful process to protect the quality level. But to realize growth this seems like the only option (and the size of the new company at least supports bringing in a competent commercial manager)

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3.2 The frequent changes in personnel results in loss of quality, so a personnel policy, aimed at raising the quality level and increase the employee commitment while realizing growth, is needed

Staff changes relatively frequent, which puts pressure on the quality the staff can deliver

5 customers indicated that the frequent changes in staff where seen as a problem because the quality of the technicians was unpredictable and they didn’t like to see someone else every time

Internal interviews supported this difference in quality (mainly in workshop and shop)

Internal interviews, however, also indicated that most people enjoy working at A&A

A&A should implement a more formal personnel policy to realize:Less changes in personnel by creating more employee loyalty A growth plan, with functional descriptions, growth targets,

potential resources (get from competition, incorporate one man companies, recruit straight out of school), and action plan Note: when maintenance and visits become a larger part of the business, growth of the organization is needed, even with the same customer base

Higher overall quality of staff by maximally utilizing everybody's potential and actively looking for adequate replacement for certain jobs, where the new employee needs to show a certain sense of commitment (mainly issue in workshop and shop)

It is important in this policy to pay special attention to:A development plan per employee, with training need and career

path/ goals (yearly)A performance evaluation of every employee (yearly)

Together with the development plan this is meant to be a two way medium to discuss issues

Employee commitment, by making them participants in reaching goals and offering good employment conditions (healthcare, pension, possibility to get further schooling, bonuses, etc.)

The “social aspect”, like an office party and/or a yearly presentation of results and goals

Note see also excel sheet “survey results” and appendix A on the internal interview results

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4 Although management is generally aware of the weak areas in its operations, A&A has to make sure improvements are implemented

4.1 Better monitoring the financial viability of the separate pillars of the business is needed to be able to make accurate business decisions

4.2 Stock management should be improved and become an active management tool, both operationally and commercially

4.3 To manage the company on basis of clear and consistent information in all areas, a clear structure for performance figures has to be developed

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4.1 Better monitoring the financial viability of the separate pillars of the business is needed to be able to make accurate business decisions

Sales Repair/ service

Training

Mutually enhancing each other

Strategic

Beneficial

Training is complementary to sales, but sales is supportive of training as a marketing/ sales

channel

Training is complementary to service, but service is supportive

of training as a possible sales channel

Next to the strategic importance of each of the pillars to the business, the financial performance of each has to be clear, so in the future business decisions can be made

based on the right and complete information set. To facilitate this a bookkeeping methodology and good filing systems needs to be

set up as soon as possible

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4.2 Stock management should be improved and become an active management tool, both operationally and commercially

In the current stock registration mistakes are too common according management, however the employees that keep the stock are under the impression stock registration is accurate enough

A new system for internal monitoring of when new stock needs to be ordered is just developed, however the minimum amount of necessary stock is now determined based on feeling, instead on actual stock turnover time and total demand figures

No actual system is in place to monitor what products are especially “in fashion” and what is not sold at all

By implementing a more dynamic stock registration system, with a external instead of internal perspective, that monitors turnover time and things like (seasonal) popularity, A&A could optimize its stock levels, and therefore cashflow, better based on dynamic sales numbers. At the same time customers can be served better by never running out of stock and always having the right products in the shop

Insight in sales patterns per customer could help A&A to become even more professional, whereby sales opportunities can actively be pursued. This is not yet common or wished for on a large scale in Arusha, but A&A should not neglect to

explore these opportunities

Note see also appendix A on the internal interview results

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Some KPIs should be defined to give separate insight in sales, repair and training, others to give an overall view of the business. Preferably there are not more then 4-5 KPIs per dashboard segment and 4-5 for each

“pillar” and overall (16 to 20 in total)

4.3 To manage the company on basis of clear and consistent information in all areas, a clear structure for performance figures has to be developed

Management dashboard

FinanceCustomer &

Market

Supply/ stock Process & Organization

Possible key indicators(1) :• # of repairs per employee• % repaired within 24 hrs• # trainings given• # follow up trainings• …

Possible key indicators(1) :• # complaints• # active customers• Cross sell %• …

Possible key indicators(1) :• Cash flow• Cost level as % of turnover• Stock value• Profit per sector• …

Possible key indicators(1) :• # new products in assortment• # times run out of stock• Stock turnover time• % in time delivery• # times product/ service unavailable• …

1) The frequencies can differ per indicator: weekly, monthly, quarterly or yearly

Key performance indicators (KPIs) give a clear indication on the performance of the total business, without lengthy reports or close daily involvement

They can be used to steer the business and make strategic decisions Problem areas are shown clearly and timely, so priorities can be set to address issues Over time, clear trends can be identified and monitored Some indicators are a useful management tool towards creating commitment and

motivation among employees by setting targets

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Appendix A –Summary of internal interviews

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Summary of internal interviews (1-3)

Repair services

The internal process of repairs & service are understood; every body knows what to do and what to report when and how (Red.: customer interviews contradict this a bit, showing that sometimes it doesn’t work the way it is supposed to)

The technical problems that the technician have to solve haven’t changed much over the last 2 years

The delivery time of spare parts for hardware problems is the major bottleneck for timely repair

Technicians notice that customers want more “house calls”

Technicians keep themselves trained and informed by internet and “just trying”

No trend analysis for repairs is being done

Viruses play an increasingly important role, together with internet downloads, in software problems

There is hardly any competition for repairs

Everybody has his own specialty

No work division is being done; everybody take what he likes. So there’s no real control over how long a product stands there

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The shop & customers The key strength of A&A is, as seen by personnel, the service and quality level. The higher prices

chase some people away at first, but they come back if they learn how important quality is There is a strong return of customers Customers are starting to show more interest in preventive maintenance The employees (3) that have to do with stock levels are under the impression the registration

accurate enough, while management thinks there are woo many mistakes The cash register is usually correct enough Recent special offers have worked well to attract people to come to the shop The availability of in dept technical help when buying in the shop, is greatly appreciated by

customers In the shop, the other services A&A provides are only mentioned when the girls think the customer

might be interested If there’s a regular demand for a certain product that A&A doesn’t have, the girls communicate this

to Alex The majority of the customers are businesses, only a few are private customers The shop is visited by many existing customers, but also a significant part of new customers Although both are friendly, there’s a clear difference in assertiveness between the two sales girls

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Training

There is a lot of competition in the training market, leading to reduced numbers of customers

A&A is more expensive then others, but the quality is better, which mainly attracts business people

Currently the course material and duration is being reviewed and shortened, to become more competitive

A lot of trainings come from businesses that have bought in the shop

There is some repeat work

The trainers seem very adequate and manage the whole business between the 3 (or mostly 2) of them

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Appendix B –Summary of customer interviews

(per customer)

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Summary of customer interview: Rotian Seed

Size: Medium

Importance of IT: Supportive

Potential for growth: Small

Planning to buy: - Memory stick- Network- Laser printer- 1 computer

Services of A&A used: Sales, repair, maintenance and information

Use of competition:No, but maybe in future for price comparison

Extra IT needs: -

Preventive maintenance: Contract with A&A

Prefers visits: No

Receives newsletter: Yes, basic lay out and too much technical language, but interesting and has bought because of it

Extra information needs: More practical tips/ did you know that …. column, on subjects like:

- Software tips- Beamers- Memory sticks- Data loss over printer cables

Business opportunity

Strengths of A&A:- Spacious new shop- Dutch manager gives trust and has a lot of

knowledge and "daadkracht“- More marketing then competition

Weaknesses of A&A:- Quality of work fundi's is unpredictable- Differences in quality of the shop personnel- If repair takes longer status is not always

communicated on regular basis. You have to go after it yourself

- When A&A renewed the software, no back up was made while it would be little extra trouble, especially since it was known to be a risk for the affected program/ data

- Should have own transport instead of using taxi's to be paid in cash by customer

- Be more commercial: not always a prompt reaction to possible sales opportunity

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Summary of customer interview: Stiggy’s

Size: Small

Importance of IT: Beneficial


Planning to buy: -

Services of A&A used: Sales, customized software

Use of competition:No

Extra IT needs: - Electronic payments

- Custom made software for hotels/ restaurants for his new

coffee shop

Preventive maintenance: Agreement with A&A

Prefers visits: No, doesn’t want them to see the business

Receives newsletter: No and not interested

Extra information needs: -


Strengths of A&A:- Honesty & trust- No BS

Weaknesses of A&A:

-

Other remarks:

- A&A is the best in town, but the no nonsense and direct attitude might be difficult for others

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Summary of customer interview: Redio Haabari Malum

Size: Large

Importance of IT: Crucial

Potential for growth: Small/ medium

Planning to buy: Some computers to replace old ones

Services of A&A used: Sales, repair, training

Use of competition:Yes, if product is not available at A&A or when price is lower at competition (for some products)

Extra IT needs: Faster internet for uploads and downloads

Preventive maintenance: Themselves on ad hoc basis

Prefers visits: Yes, for network related problems, not for hardware problems

Receives newsletter: Yes, interesting, right frequency and length; has already bought

something because of it



Strengths of A&A:- Quality of service- After sales service- Trust- Quality company (good reputation in

repairs)

Weaknesses of A&A:- Prices could be sharper sometimes- If something needs to be done it has to go

trough Alex

Other remarks:- You get good service, but you pay a bit

more to get it

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Summary of customer interview: ANM

Size: Large


Potential for growth: Medium/ large

Planning to buy: 4 to 5 extra computers, to enlarge network

Services of A&A used: Sales, repair, maintenance

Use of competition:Yes, if product is not available at A&A or when price is lower at competition (for some products)

Extra IT needs: - Breeze net items (hardware)- Wireless antennas

Preventive maintenance: Do have the knowledge themselves, but don’t have the time

Prefers visits: Yes

Receives newsletter: Yes, Good, and works if they’re looking for something anyway; otherwise it is ignored



Strengths of A&A:- Pick ups for repairs- Being able to deliver what you need- Quality is good; that's a bit more expensive

because of that is o.k.- Service is good

Weaknesses of A&A:- Not enough choice- Not enough stock- No repair of old equipment- Frequent change of staff affects the service

provided


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Summary of customer interview: ELTC

Size: Medium



Planning to buy: - Beamer- Laptop (on order) -Network printer (on order)

Services of A&A used: Sales, repair


Extra IT needs: -

Preventive maintenance: No, but is interested

Prefers visits: Yes

Receives newsletter: No, but would like to



Strengths of A&A:- Response time for service- They have all necessary knowledge- Trusts what A&A says, both Alex and

technicians- Larger support staff as opposed to 1 or 2

person show- Consistent A products offerings

Weaknesses of A&A:- Delivery on time (ordered lap top and

printer), they keep on saying it's coming while it's not

Other remarks:- Impressed with the technicians that served

him- Appreciates the good working relationship

with Alex

Business opportunityBusiness opportunity

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Summary of customer interview: Popvriend

Size: Medium



Planning to buy: - 2 computers- 1 large printer

Services of A&A used: Sales, repair, maintenance, training

Use of competition:Yes, sometimes for cheaper hardware

Extra IT needs: -

Preventive maintenance: Yes, has agreement with A&A

Prefers visits: Yes

Receives newsletter: Yes, It's advertisement; doesn't really look at it, but doesn't find it disturbing



Strengths of A&A:- Service- Quick response by Alex

Weaknesses of A&A:- Everything is build on Alex- Should have larger assortment of products,

from cheap to quality, to give the customer the choice

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CONFIDENTIAL

Summary of customer interview: KK Security

Size: Medium


Potential for growth: Large

Planning to buy: - Server (on order)

- Lap top

- Expansion of technical area to 8/ 10 computers (is 5 extra)

Services of A&A used: Sales, repair, maintenance, information


Extra IT needs: Wireless equipment

More message size per e-mail message

Preventive maintenance: Yes, has contract with A&A

Prefers visits: Yes


Extra information needs: - Communication- Back ups- Security industry

-


Strengths of A&A:- Service- Reliability- Willing to try and help in any situation- Better knowledge base than competition- Alex is nice and there's a good relationship,

with good information exchange- Reliability, honesty and trust (both ways)

Weaknesses of A&A:- No collection service for things that need to

go into the shop for repair



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CONFIDENTIAL

Summary of customer interview: Wegs

Size: Medium



Planning to buy: Digital photocopier that can serve as printer (also A3)

Services of A&A used: Sales, repair, maintenance, training

Use of competition:Yes, for something A&A couldn’t do

Extra IT needs: Plotter

Preventive maintenance: Yes, has agreement with A&A but could be implemented stricter

Prefers visits: Yes

Receives newsletter: Yes, but wasn’t aware it was a regular feature; it could be more regular


-


Strengths of A&A:- Reliable- Overall good company- Dutch management (“ons kent ons”)

Weaknesses of A&A:- Many changes in personnel is not pleasant:

every time somebody else comes

Other remarks:- Relatively expensive in providing services,

with charges for visits and all

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CONFIDENTIAL

Summary of customer interview: Moivaro lodge

Size: Medium



Planning to buy: - 1 maybe 2 computers- 1 printer



Extra IT needs: Extra languages for explorer (Dutch)

Preventive maintenance: Yes, has contract with A&A but could be implemented stricter

Prefers visits: Yes


Extra information needs: - General technological developments

- Special offers


Strengths of A&A:- Alex

Weaknesses of A&A:- Too dependent on Alex; quality of the

whole team should increase- Too many changes in personnel- Has no knowledge about or is unwilling to

supply network --> be more open for the customers wishes



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CONFIDENTIAL

Summary of customer interview: Arusha Times

Size: Small



Planning to buy: - Image setter to produce film- 1 computer, if they move to

another office


Use of competition:Yes, if not available at A&A

Extra IT needs: Image setter

Preventive maintenance: No, but has interest

Prefers visits: Yes

Receives newsletter: Yes, good, and works if they are looking for something anyway; otherwise it is ignored


- Special offers


Strengths of A&A:- Reliable- Competent staff compared to others- Fixed prices- Organized management

Weaknesses of A&A:

If there needs to be something:- Parking space- Larger stock levels

Other remarks:- The new shop is a good improvement


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CONFIDENTIAL

Summary of customer interview: EAC

Size: Medium (in work done by A&A)



Planning to buy: In next 18 months max. 20 extra computers

Services of A&A used: Sales, repair, customized software

Use of competition:Yes, maintenance and repairs on basis of tenders

Extra IT needs: Some special purpose software

Preventive maintenance: By other party

Prefers visits: N/a hardly any repairs done

Receives newsletter: Yes, good and is saved for possible future use

Extra information needs: A&As other services, like training (for instance the training timetable)


Strengths of A&A:- Good sales: pricing is competitive- Good selection and quality of products- Reliable (what you buy is what you get)

Weaknesses of A&A:- Marketing can be improved- More customer relationship management

Other remarks:- Would like to talk to Alex about

maintenance/ repairs: A&A should be bidding and he should know about that

- Arusha could use a computer exhibition/ fair to see what products and services are available. A&A, being a pioneer in Arusha, could start this



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CONFIDENTIAL

Summary of customer interview: Braeburn school

Size: Medium


Potential for growth: Medium

Planning to buy: Max 3 extra computers


Use of competition:Yes, for special offers or historically determined

Extra IT needs: Reliable and fast internet provider

Preventive maintenance: By other party

Prefers visits: No, not for extra cost




Strengths of A&A:- Reasonable prices- Honest about what you really need- Know what they're talking about- Honest about what they can and cannot do

Weaknesses of A&A:- Prices, they are reasonable but not sharp

Other remarks:- Especially for the education it is

important to renew; they need to be told new developments so they can keep up



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Summary of customer interview: ABB TanelecSize: Large



Planning to buy: In phases everything is replaced for newer models in the next 18

months (35 computers)


Use of competition:No, but competition is growing and actively trying to win the account

Extra IT needs: Lotus NotesMachine specific software

Preventive maintenance: Yes, has contract with A&A

Prefers visits: Yes

Receives newsletter: Yes, good and is forwarded to bosses


- More on Viruses/ virus alerts



Strengths of A&A:- Good training (in house)- Good products (hardware- Good service: advice on what’s really needed- Good knowledge base for repairs & maintenance- Consistent and durable products (competition

sells whatever)- Good after sales service

Weaknesses of A&A:- Having to take whole computer to shop for

repair- Clients can sometimes be treated more as an

equal/ knowledgeable party (once when hardware was changed, A&A deleted files and software THEY thought were not needed anymore, but client thought differently)

- Renew training: approach people for a refreshment course after 3-4 years

Other remarks:- Train customers on what can be

specifically interesting for their business on the internet (interesting sites, search tips, etc.)

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CONFIDENTIAL

Summary of customer interview: SaconSize: Small



Planning to buy: - 1 printer- Max 1 computer

Services of A&A used: Sales, repair, training


Extra IT needs: - Auto CAD

- Payroll software suitable for small company (current package to

complicated)

- Fast and affordable internet

Preventive maintenance: No, but would be interested to talk about it

Prefers visits: Yes

Receives newsletter: No, but would be interested

Extra information needs: - Internet and e-mail possibilities - Other options to manage power

fluctuations- Scanners- Software that supports estimates- News on common software like

windows- Digital camera use and how to put it on computer


Strengths of A&A:- Good quality stuff at competitive price- Back up assistance is always available- Is reliable and makes you comfortable- Good showroom- Large range of accessories

Weaknesses of A&A:- It is a lot of effort to get somebody to

customer- When selling/ installing

something, train the customers that have no experience with IT more on how to properly use the equipment (for instance how to shut down)

- Orders take a long time

Other remarks:- When a new customer buys a computer,

A&A should also supply the internet & e-mail connections, or at least advice them on it

Business opportunityBusiness opportunity


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CONFIDENTIAL

Summary of customer interview: DavanuSize: Small



Planning to buy: 20 computers for internet café

Services of A&A used: Sales, repair, maintenance, information


Extra IT needs: Fast & reliable internet

Preventive maintenance: Yes, has agreement with A&A

Prefers visits: No preference

Receives newsletter: Yes, is good to keep you up to date

Extra information needs: Developments in common software (like windows)


Strengths of A&A:- Provides fast and accurate information- Good and informal relationship- Good quality and price balance

Weaknesses of A&A:- Should offer refreshment courses

for customers’ staff


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CONFIDENTIAL

Summary of customer interview: RAS

Size: Medium


Potential for growth: Medium/ large

Planning to buy: Max. 4 computers


Use of competition:No, only for quotations

Extra IT needs: -

Preventive maintenance: Do it themselves

Prefers visits: No, shop is cheaper and close by


Extra information needs: Software development for engineering & design


Strengths of A&A:- Timely and efficient- Cost-effective (good price/ quality balance)- Good system in place for after sales service- More experience then all the others

Weaknesses of A&A:- No credit possibilities - Customer relationship: they are no longer a

monopoly, so they have to work harder on customer retention

- Frequent changes in personnel


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CONFIDENTIAL

Summary of customer interview: AON

Size: Small


Potential for growth: Medium

Planning to buy: - 1 computer- 1 CD burner

Services of A&A used: Sales, repair, internet


Extra IT needs: -

Preventive maintenance: Do it themselves

Prefers visits: Yes, to also learn from technician for next time

Receives newsletter: Yes, should be more about general info instead of special offers

Extra information needs: How to manage/ prevent junk mail and viruses


Strengths of A&A:- Location: it's close- Communication with Alex on an equal

level- A&A offers solutions- A&A is a bit more professional then the

others (can pay with cheque)

Weaknesses of A&A:- Deliver what they promise: if they make an

appointment, then stick to it better- Accessibility: if you phone you sometimes

get sidelines/ get the feeling your not important enough

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CONFIDENTIAL

Appendix C –Summary of A&A strengths and weaknesses

(strengths is incl. what differentiates A&A)

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Strengths Times mentioned

Alex 10

Trust/ reliable 10

Quality of (after sales) service 9

Quality of goods in balance with price 8

Knowledge 7

Shop/ selection 3

Speed of response 3

More experience then competition 2

Deliver what you need 2

Marketing 1

pick up for repairs 1

Larger operation 1

Fixed prices 1

Location 1

Weaknesses Times mentioned

Quality staff 5

House call services 4

Communication on status 3

Product range 3

Dependency on Alex 3

Delivery time 3

Customer relationship 3

Prices 2

Not enough stock 2

Not open to customer whishes 2

Long term services: refreshment training 2

Mistakes in repairs 1

Missing commercial opportunities 1

No knowledge of certain subject 1

Marketing 1

No credit 1

Parking 1

june, 2003 arusha, tanzania move towards the future: to build a sustainable business, a&a needs...

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