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Success Stories

Software

Company Profile
This is a start-up software firm in Cambridge in its third year of operation. The firm specialized in designing and building computer games, especially auto racing games. These products were developed on an outsource basis for major software/entertainment firms such as Electronic Arts, Sony, Sierra and similar firms that distributed these software games worldwide through retail outlets.

The Situation
Our small young firm had completed one software driving game that had been successfully received in the marketplace. They were in the process of developing a second driving game. They had insufficient revenues from existing contracts to support their product development activities and keep the company going. They needed a new revenue stream, so that they could last long enough to accrue the benefits of product #1 and complete the development and introduction of product #2. They were gaining a good reputation in the marketplace for developing such products but were a company at risk because of their size and economics. Alpha Associates was asked to help the management solve this problem.

The Alpha Program
Alpha Associates consultants and the management determined that the best approach would be to utilize existing skills of the staff and start a software engineering division of the company to offer programming and software development services to larger software companies on an outsource basis. A program to make this happen was created and implemented with the company president. It had the following components:

  • New division identity and literature.
  • Relationship sales training for the president.
  • Target sales program.
  • Implementation of relationship selling program with targeted software firms.
  • Communications and contact program for new company exposure.
  • Bundling of computer games with other existing products.

Through aggressive sales activities and exposure at software industry events, the company was able to begin to build a reputation for itself and its products.

Results
During the first six months of the start-up of the software engineering division, the president was able to sell services and produce $600,000 in consulting revenues. During the next full year, revenues were $1.6 million. This new revenue stream allowed the management to accrue the benefits of their existing successful product, finish development and introduction of its second major product and eventually produce and publish computer games under its own company name. By the fourth year, combined game products and services revenue of the company was at $14 million. In the fifth year, the company was sold to an international software/entertainment company for $56 million.