Business Memo (AVID) Essay Example | Topics and Well Written Essays - 750 words

Business Memo (AVID) - Essay Example This report analyzes the strategic position of the company, the external environment and the financial performance of company based on its financial statements during the years 1999 and 2000. The first big strategic decision the company made was in 1993 when the firm launched its initial public offering (IPO) to become a publicly traded company and raised $53 million. His capital was utilized to spur the firm’s future growth. The three markets Avid serves are: Media composer was the initial product helped the company become such a popular firm in the industry. As the company matured it realized it needed help from other firms in order to developed new products. They entered into a series of strategic alliance with different companies. Avid System became a mid-size company. In this industry they were at a competitive disadvantage with larger firms such as Sony which had unlimited resources. Avid as a pioneer in the industry pushed for open standards for the participants in the digital industry. The company with the help of 150 other firms in the industry created the Open Media Framework standard. The creation of an open standard indirectly hurt the company because lost its edge of having a unique product in the industry. Avid in the early 1990’s utilized a Mac platform for its software. The company noticed that Apple was not doing to well in the computer industry and it felt continuing operating under a Mac platform was risky. In 1997 the company entered into a strategic alliance with Intel in order to convert its software into Windows based platform. The company gave up 6.75% of its common stock in exchange for Intel’s expertise. In 1993 the company entered into an alliance with Lucas film in order to develop special effects products. The firm entered into a partnership in 1994 with Tsushnki Company to develop the world first full motion digital camera. A huge transaction for the company was the