FUTURE POTENTIAL CONTINUED
This is taken from the annual report 4/30/97
Business Strategy
The Company has adopted a multi-faceted business strategy to achieve its sales and profitability objectives, which consists of the following key elements:
Increase Sales by Expanding Market.
The Company intends to increasingly expand its business activities beyond those markets and geographic regions in which it is presently engaged. Management believes that many of its currently offered services may be of value to retailers outside the United States. Accordingly, the Company has established relationships with several Canadian retailers and may explore opportunities to solicit new clients in certain European countries.
Aggressive Marketing of Additional Services to Existing Client Base.
Based on discussions with its clients, requests from clients for services, and management's analysis of the retailing and product distribution industries, the Company believes that many of its existing clients could benefit from additional services presently offered or under development by the Company.
In accordance with applicable accounting principles, however, the Company has not recorded any research and development expenses during the two most recently concluded fiscal years. The Company intends to develop, introduce and aggressively market programs and services to its client base, including:
1. A uniform product code (UPC) program designed to assist retailers in implementing price changes and collecting and reporting information concerning sales and inventory of magazines and other product categories which contain a large number of stock keeping units (SKUs) and are subject to frequent changes in price, such as confections and greeting cards.
As currently envisioned, subscribers to the Company's UPC program will receive frequent, on-line updating of product information collected by the Company directly from the product manufacturer. In addition, subscribers will receive reports generated by the Company from data received by the Company through a computer link to the retailers' check out systems.
2. An incentive rebate, advance payment program which would enable clients possessing the necessary point of sale computer systems to receive advances equal to the discounted amounts of the incentive payments otherwise due to the retailer from magazine publishers upon quarterly submission and processing of claims for such payments. |
