Houston, TX (PRWEB) February 9, 2005
Directron.com, the largest online store based in Houston, Texas has acquired the web site, inventory, and other business assets of the oldest, live online store in Houston Â AxionTech.com from Axion Technologies, LP. The deal was reached in December 2004. Twelve AxionTech.com employees have joined forces at Directron.com. The acquisition shall be completed in February 2005.
AxionTech.com was one of the first e-commerce companies in Houston. It started selling computer hardware and software online about ten years ago in 1995. Later it expanded into IT services, POS, security surveillance, and telephony businesses. Over the years, AxionTech.com has served many segments of the market such as government, education, corporate, health, and medicine. It created many of its own technologies behind its web store front such as virtual stores for resellers and back-end management system called Avalon. The owner of Axion Technologies wanted to exit the PC business and focus on his other businesses.
This merge makes sense from many aspects. The synergy of these two companies shall help the combined company to compete better in the market. Many skills, technologies, and product categories are complementary to each other between them while some are over-lapped. The merge shall make the combined company stronger and better.
The joined company can provide lower prices, more product selection, and better services to the customers than two separate companies. It will make it more convenient for customers to shop, upgrade, and build their own computers from one-stop resource. The management teams at Directron.com and AxionTech.com plan to keep the strong points from both sides while eliminating or reducing the weak areas.
The PC industry has gone through dramatic changes in the last several years. As the prices keep decreasing, the market gets tighter for the resellers as shown by many resellers getting out of the business. However, Directron.com managers believe:
As long as there are people out there who want to build/repair/upgrade their own computers for fun, saving money, or the challenge, there is a market for their products. As long as the ÂbigÂ system builders can't provide satisfactory after-sale services, there is a market for their services.
Directron.com has been growing in average 25% annually in the last ten years for several reasons. Here are the top three:
1. Flexibility. Directron.com can build, deliver, install, and service 1000x computers with 10x and even 100x different hard drive images/configurations within a short period of time without charging the customers an arm and leg. They have the capacity to do mass production of highly customized systems. They are still a relatively small company, which means they can make decisions quickly in response to market changes and customer needs.
2. Location. Directron.comÂs business is to provide discount computer hardware, parts, software, desktops, laptops, servers, peripherals, and accessories. Not too many companies are left in Houston area to provide such products and related services, especially from a 100,000 sq. ft. warehouse space.
3. Experience. The parent company of Directron.com was started in 1991 as a wholesaler. Their business model has gone through many phases including wholesale, e-tailor, system integration, IT consulting, etc. Such a wide range of experience has put Directron.com in a strong position to serve their customer base - whether it's individual, public school, government agency, or giant corporation. Directron.com has the talent, know-how, capacity, and experience to serve their computer needs.
It will take time and efforts for such an acquisition to work. Initially, they have to combine the technologies behind these two companies to have a well-integrated and more efficient back-end system. The customers should see immediate benefits from the integrated system that take advantages of two systems.
Directron.com plans to keep AxionTech.com as a separate web store, taking advantages of its unique back-end technologies. They hope to have two slightly different but equally successful business models while the backend is integrated.
Directron.com is the online store of a privately held company under Chang-Sheng, Inc. that was incorporated in 1996. Their online division was started in 1997.
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