Essay About Archimax Shares Values And Software Housesturnkey Product

Archimax Strategy
Archimax StrategyThe development of virtual reality experiences for the entertainment marketOriginal, and current company goal is to release the “C21”Image generator and control system specifically for virtual reality applications in entertainment.Would give them an industry leading position in low cost, high quality graphics.CustomersPrimary Customer: Sell C21 to equipment IntegratorsSecondary Customer: Theme parks and Shopping mallsWould be done through alliances with design firms and software housesTurnkey product and merchandising service to these customers.Not yet released (delays).TacticsAcquisition of PS Technologies, an Austin, Texas-based developer of image generators.Short-term cash flow → PS has an attractive inventory of finished/unfinished PS 100’s (a weaker/cheaper C21)Worth $2.8 million → Most likely sold at a discount of 40-60%Opportunity to obtain a NASDAQ listingBought for $900,000, $1.4 million in liabilities and Archimax shares values at $1.8 million.SIGGRAPH & IAPPACompany & industry exposure to potential investors and customersKey Success FactorsNeed cash flow for product developmentNeed good, technical peopleAbility to produce a product to release on the marketNeeds a product to obtain a reliable stream of revenueNeeds exposure to attract investors as well as alliances with other firmsBeing present at SIGGRAPH & IAPPA.Evaluating OptionsNo changesPros: Plan is already underway, no extra time and resources have to be moved.Cons: Archimax needs to attract investors at SIGGRAPH as a last ditch effort to operate. Not allocating enough towards its budget may be detrimental.Could go bankrupt by OctoberImprove ExhibitPros: Increase chances of picking up investorsCons: difficult to come up with the extra $500,000 in 6 weeksWould have to cut budgets to budget the extra $500,000 (Take from the IAPPA budget?)Cancel SIGGRAPHPros: Save cash in the short-term & focus on C21 completionCons: No interaction/exposure to investors → less foreseeable cash in the future.