4.What is your assessment of the attractiveness of the businesses/product markets that Avid has diversified into? Has Avid used acquisitions as a substitute for internal innovation? Just how innovative has Avid been? The businesses/product markets that Avid had diversified into were all very attractive. These markets all showed high opportunity for future growth. Many of these markets were still using old technology and the industry had not produced an industry leader yet. This allowed huge opportunity for Avid to establish market share, grow, and develop large revenue sources. Some industries were still in their infancy, which meant it would take them a while before large growth into new technological sector took place, these still being huge opportunities for growth in the future. Below is a summary of Avid’s revenue sources and products. Avid has diversified and served three markets. Their ‘primary revenue source was the film, television, and related industries” (C-538). Avid produced state of the art digital technologies that helped make this industry. These tape based industries were going to benefit largely from Avid’s use of digital technology which moved away from the analog technology that was being used. The digital technology allowed these industries to not only produce things faster and at less cost, but they did not lose quality which was the case with analog/tape. The film industry adapted Avid technology quickly. This gave Avid 80% market share of the one billion-dollar film industry (C-538). Avid still saw tremendous growth in two billion dollar television industry as well as 900 million dollar audio industry and 985 million dollar corporate and institutional video industry which were still highly tape based.
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