Recommendations: ·         MicroAge should expand their informational services division. Demand for informational services in subscriber line will continue to grow as cyberspace found e-commerce expands. Profit margins of the distribution segment ar dwindling and these trends are expected to continue. The information services division concentrates on prize added IT advantages that every business will be forced to crush given the increasingly competitive environments for all businesses.
·         MicroAge may contend selling the distribution portion of the company and use the blood transfusion of the cash from the sale of this unit to focusing more on the systems integration business which has margins of 30-40%. If MicroAge increased the integration business by 50% in sales they would make up for the governance of the distribution service.
·         MicroAge should focus on trivialer to mid-size companies. MicroAges role would be to introduce IT in their organizations via practical and efficient solutions that streamline processes for small to midsize companies. focusing on this sector will yield high margins than the cutthroat competition now taking place in the Distribution Group.
·         Strategic alliances and partnerships with other IT providers will perpetuate MicroAges act advance in the informational services food grocery store segment. To maintain their market share in this segment MicroAge should continue with these alliances.
·         Continue to deepen flow of information. MicroAge was the first in the industry to provide non-proprietary, internet based configuration and electronic catalogs for its product and products in competitors warehouses. Since more often than not every competitor will be able to market and sell items on the internet, they must continue to innovate.
Updates: ·         MicroAge have expand services from 34 countries to 46 since January of 1998 and corporation currently employs 6000, up from 2892 in 1997.
·         MicroAge created Pinacor, which handles the distribution segment of their business.
·         MicroAges Teleservices division continues to be a major component of their overall business structure and success.
·         1998 profits were 5.5 billion up from 4.4 billion in 1997.
·         Feb 1, 1999 - Unveils MicroAge Enterprise IT - this is touted as the first complete pre-engineered business solution for distributed computing.
·         4/19-MicroAge jumps 35 spots up in the Fortune 500 list, pathetic up 38 places to No. 297
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