1. June, 2003 Arusha, 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

2. 2 To build a sustainable business, A&A needs to realize growth with a more commercial approach 1There is potential to grow and A&A needs to react on this 2A&A has a good proposition to realize growth, however a more commercial approach is needed 3To realize growth A&A needs to improve and expand the organization 4Although management is generally aware of the weak areas in its operations, A&A has to make sure improvements are implemented

3. 3 CONFIDENTIAL 1There is potential to grow and A&A needs to react on this 1.1The IT market in Tanzania is still growing 1.2Customer interviews show that, although some companies have reached their preferred IT level, there are still a lot of sales opportunities for coming year 1.3Arusha is moving toward the third phase of the technology life cycle, which means that competition is growing and customers are getting more mature 1.4A&A needs to grow to be able to build a sustainable business

4. 4 CONFIDENTIAL 1.1The 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

5. 5 CONFIDENTIAL 1.2Customer 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) 311 Medium ( 5 – 20 computers) 251 Large (> 20 computers) 211 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

6. 6 CONFIDENTIAL 1.3Arusha 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:

7. 7 CONFIDENTIAL 1.4A&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: n Government stimulation by eliminating taxes on IT products n Arrival of large international institutes like the UN n Growth in Tourism n 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: n Maximize use of existing infrastructure and technologies n Reduce investments to a minimum n Create lean and mean organization and processes n Find new ways to capitalize on acquired know-how n Look into new technologies and innovations (start again in phase I or II) I IIIII IV

8. 8 CONFIDENTIAL 2A&A has a good proposition to realize growth, however a more commercial approach is needed 2.1In general customers are very loyal to A&A, mainly because the company is considered very reliable 2.2All wanted services, except for some specialized ones, are being provided by A&A 2.3A&A should develop a focused market approach for all its different services, taking the long term potential of each service into account 2.4Unlike Europe there is still a lot of potential for direct marketing 2.5Customer 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

9. 9 CONFIDENTIAL 2.1In 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 1043  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 KnowledgeShop/ selection 10 9873 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

10. 10 CONFIDENTIAL 2.2All 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 4642411  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 NoteMore 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

11. 11 CONFIDENTIAL 2.3A&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

12. 12 CONFIDENTIAL 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 Notesee also excel sheet “survey results”

13. 13 CONFIDENTIAL 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 35324  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

14. 14 CONFIDENTIAL C.There is definitely a market for customer visits, a service most customers are prepared to pay for NoYesNo preference 3113  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)

15. 15 CONFIDENTIAL 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) 454  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 NoteSee also excel sheet “survey results” 1)customers: EAC, ABB, Sacon and Davanu Training courses could be marketed more aggressively. For instance:  Publish schedule in newsletter  Actively approach customers that buy new computer or software  Actively approach customers that often have software problems or questions

16. 16 CONFIDENTIAL 2.4Unlike 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 Notesee also excel sheet “survey results”

17. 17 CONFIDENTIAL 2.5Customer 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  … Notesee also excel sheet “survey results”

18. 18 CONFIDENTIAL 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 Grow potential of contribution to A&A Current 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 NrCompanyIT importanceSize nowPotential 1RotianSupportiveMediumSmall 2Stiggy’sBeneficialSmall 3Redio HMCrucialLargeSmall/ med 4ANMCrucialLargeMed/ large 5ELTCSupportiveMediumSmall 6PopvriendSupportiveMediumSmall 7KK securityCrucialMediumLarge 8WegsSupportiveMediumSmall 9MoivaroSupportiveMediumSmall 10Arusha timesCrucialSmall 11EACCrucialMediumLarge 12BraeburnSupportiveMedium 13ABBCrucialLarge 14SaconsupportiveSmall 15DavanuCrucialSmallLarge 16RASCrucialMediumMed/ large 17AONCrucialSmallMedium SmallLarge 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 n Maintain relationship n Supply consistent good service and quality n Inform regularly about products & services Retain & grow n Strengthen relationship n Offer extra service n Active marketing n Come with suggestions and solutions Make agent n Supply consistent good service and quality n Inform regularly about products & services Grow/ acquire n Acquire new business by building strong relationship n Active marketing n Come with suggestions and solutions Draft 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17

19. 19 CONFIDENTIAL 3To realize and support growth, A&A needs to improve and expand its organization 3.1A&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 3.2The 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

20. 20 CONFIDENTIAL 3.1A&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 Notesee 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 acquisition this 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)

21. 21 CONFIDENTIAL 3.2The 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 Notesee also excel sheet “survey results” and appendix A on the internal interview results

22. 22 CONFIDENTIAL 4Although management is generally aware of the weak areas in its operations, A&A has to make sure improvements are implemented 4.1Better monitoring the financial viability of the separate pillars of the business is needed to be able to make accurate business decisions 4.2Stock management should be improved and become an active management tool, both operationally and commercially 4.3To manage the company on basis of clear and consistent information in all areas, a clear structure for performance figures has to be developed

23. 23 CONFIDENTIAL 4.1Better monitoring the financial viability of the separate pillars of the business is needed to be able to make accurate business decisions SalesRepair/ 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

24. 24 CONFIDENTIAL 4.2Stock 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 Notesee also appendix A on the internal interview results

25. 25 CONFIDENTIAL 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) 4.3To 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 Finance Customer & 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

26. 26 CONFIDENTIAL Appendix A – Summary of internal interviews

27. 27 CONFIDENTIAL 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

28. 28 CONFIDENTIAL Summary of internal interviews (2-3) 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

29. 29 CONFIDENTIAL Summary of internal interviews (3-3) 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

30. 30 CONFIDENTIAL Appendix B – Summary of customer interviews (per customer)

31. 31 CONFIDENTIAL 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

32. 32 CONFIDENTIAL Summary of customer interview: Stiggy’s Size:Small Importance of IT:Beneficial Potential for growth:Small 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:- Business opportunity 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

33. 33 CONFIDENTIAL 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 Extra information needs:- Business opportunity 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

34. 34 CONFIDENTIAL Summary of customer interview: ANM Size:Large Importance of IT:Crucial 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 Extra information needs:- Business opportunity 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 Business opportunity

35. 35 CONFIDENTIAL Summary of customer interview: ELTC Size:Medium Importance of IT:Supportive Potential for growth:Small Planning to buy:- Beamer - Laptop (on order) -Network printer (on order) Services of A&A used:Sales, repair Use of competition:No Extra IT needs:- Preventive maintenance:No, but is interested Prefers visits:Yes Receives newsletter:No, but would like to Extra information needs:- Business opportunity 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 opportunity

36. 36 CONFIDENTIAL Summary of customer interview: Popvriend Size:Medium Importance of IT:Supportive Potential for growth:Small 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 Extra information needs:- Business opportunity 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

37. 37 CONFIDENTIAL Summary of customer interview: KK Security Size:Medium Importance of IT:Crucial 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 Use of competition:No Extra IT needs:Wireless equipment More message size per e-mail message Preventive maintenance:Yes, has contract with A&A Prefers visits:Yes Receives newsletter:No, but would like to Extra information needs:- Communication - Back ups - Security industry - Business opportunity 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 Business opportunity

38. 38 CONFIDENTIAL Summary of customer interview: Wegs Size:Medium Importance of IT:Supportive Potential for growth:Small 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 Extra information needs:- - Business opportunity 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

39. 39 CONFIDENTIAL Summary of customer interview: Moivaro lodge Size:Medium Importance of IT:Supportive Potential for growth:Small Planning to buy:- 1 maybe 2 computers - 1 printer Services of A&A used:Sales, repair, maintenance Use of competition:No Extra IT needs:Extra languages for explorer (Dutch) Preventive maintenance:Yes, has contract with A&A but could be implemented stricter Prefers visits:Yes Receives newsletter:No, but would like to Extra information needs:- General technological developments - Special offers Business opportunity 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 Business opportunity

40. 40 CONFIDENTIAL Summary of customer interview: Arusha Times Size:Small Importance of IT:Crucial Potential for growth:Small Planning to buy:- Image setter to produce film - 1 computer, if they move to another office Services of A&A used:Sales, repair 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 Extra information needs:- General technological developments - Special offers Business opportunity 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 Business opportunity

41. 41 CONFIDENTIAL Summary of customer interview: EAC Size:Medium (in work done by A&A) Importance of IT:Crucial Potential for growth:Large 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) Business opportunity 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 Business opportunity

42. 42 CONFIDENTIAL Summary of customer interview: Braeburn school Size:Medium Importance of IT:Supportive Potential for growth:Medium Planning to buy:Max 3 extra computers Services of A&A used:Sales, repair 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 Receives newsletter:No, but would like to Extra information needs:- Business opportunity 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 Business opportunity

43. 43 CONFIDENTIAL Summary of customer interview: ABB Tanelec Size:Large Importance of IT:Crucial Potential for growth:Large Planning to buy:In phases everything is replaced for newer models in the next 18 months (35 computers) Services of A&A used:Sales, repair, maintenance Use of competition:No, but competition is growing and actively trying to win the account Extra IT needs:Lotus Notes Machine specific software Preventive maintenance:Yes, has contract with A&A Prefers visits:Yes Receives newsletter:Yes, good and is forwarded to bosses Extra information needs:- General technological developments - More on Viruses/ virus alerts Business opportunity 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.)

44. 44 CONFIDENTIAL Summary of customer interview: Sacon Size:Small Importance of IT:Supportive Potential for growth:Small Planning to buy:- 1 printer - Max 1 computer Services of A&A used:Sales, repair, training Use of competition:No 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 Business opportunity 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 opportunity

45. 45 CONFIDENTIAL Summary of customer interview: Davanu Size:Small Importance of IT:Crucial Potential for growth:Large Planning to buy:20 computers for internet café Services of A&A used:Sales, repair, maintenance, information Use of competition:No 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) Business opportunity 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 Business opportunity

46. 46 CONFIDENTIAL Summary of customer interview: RAS Size:Medium Importance of IT:Crucial Potential for growth:Medium/ large Planning to buy:Max. 4 computers Services of A&A used:Sales, repair, maintenance Use of competition:No, only for quotations Extra IT needs:- Preventive maintenance:Do it themselves Prefers visits:No, shop is cheaper and close by Receives newsletter:No, but would like to Extra information needs:Software development for engineering & design Business opportunity 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 Business opportunity

47. 47 CONFIDENTIAL Summary of customer interview: AON Size:Small Importance of IT:Crucial Potential for growth:Medium Planning to buy:- 1 computer - 1 CD burner Services of A&A used:Sales, repair, internet Use of competition:No 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 Business opportunity 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

48. 48 CONFIDENTIAL Appendix C – Summary of A&A strengths and weaknesses (strengths is incl. what differentiates A&A)

49. 49 CONFIDENTIAL Strengths Times mentioned Alex10 Trust/ reliable10 Quality of (after sales) service9 Quality of goods in balance with price8 Knowledge7 Shop/ selection3 Speed of response3 More experience then competition2 Deliver what you need2 Marketing1 pick up for repairs1 Larger operation1 Fixed prices1 Location1 Weaknesses Times mentioned Quality staff5 House call services4 Communication on status3 Product range3 Dependency on Alex3 Delivery time3 Customer relationship3 Prices2 Not enough stock2 Not open to customer whishes2 Long term services: refreshment training2 Mistakes in repairs1 Missing commercial opportunities1 No knowledge of certain subject1 Marketing1 No credit1 Parking1