Activisionblizzard Marketinganalysis

Topics: Video game, Video game industry, Blizzard Entertainment Pages: 10 (2729 words) Published: November 11, 2012
Group 3|
Activision Blizzard|
Marketing Report|

“Video games sit at the confluence of history, technology, and art in such a way that’s found in no other medium, a place where influences from every creative field meet, mix, and recombine.” - Daniel D. Synder, The Atlantic| Activision Blizzard, Inc. is one of the leading companies in the entertainment and game software industry in the world. Since its creation in 1979, Activision has been able to keep up with the ever changing aspects to the industry to be sure that it is still producing exceptional products for the video game market. If not for its adaptability, Activision would not be consistently making a profit when other companies are taking losses. Through the analysis of Activision’s current strategy, this report points out the key issues Activision is facing as a company today and recommendations on how to improve upon and benefit financially from these issues. Activision Blizzard has four main products, StarCraft, World of Warcraft, Call of Duty and Diablo.

Situation Analysis
The interactive gaming industry is comprised of manufacturing and developing of home entertainment software for the PC (including Macintosh), console gaming systems (Xbox 360,Nintendo Wii & GameCube, Sony Playstation 2 & 3), portable gaming systems – Playstation System Portable, Gameboy Advance, Nintendo DS), online gaming (web and Java based software), and mobile platforms (iPod, iPhone and Smartphones)6. In this way, this industry is very much global in terms of the development of games to the end users of software that are comprised of hardcore and casual gamers across many multiple platforms. PEST Analysis:

– for detailed PEST Analysis please refer to the Appendix

Activision Blizzard SWOT Analysis
– for detailed SWOT Analysis please refer to the Appendix

Strengths| Weaknesses|
* Worldwide popularity * Digital distribution * Strong line of successful game franchises: World of Warcraft, Starcraft, Diablo, Call of Duty Series * Diverse portfolio of gaming products: online games, action figures, cards, board games, novels. * Leading R&D department with 250 designers; Attention to detail| * No option for profitable expansion in case of drop in popularity levels * Sales seasonality * High product development costs * High risk in developing new franchises * Large dependency on single product success| Opportunities| Threats|

* Lower subscription costs to attract new customers * Creation of TV series * Expansion in the growing Social Gaming: Facebook games, iPhone and Android Apps, etc. * In-game advertising| * Bad press image: “addictive” * Growing popularity of competitor products * Government regulation * Slowdown in the economy| Action Planning and Implementation

1. Activision Blizzard Goals:
“We continue to pursue our mission to be one of the largest, most profitable and well-respected interactive entertainment software companies of the world.” – Activision Blizzard Mission Statement

2. Strategy: Market Structure & Segmentation
Activision Blizzard is a worldwide developer and distributor of video games, its games can be downloaded through the internet or bought in the retail stores in the data devices as CDs. The company has developed all kind of video games targeting different segments in the video game industry. Company

As mentioned in the business model section, Activision-Blizzard Inc.’s strategy is primarily based on marketing video gaming software and online based MMORPGs that are subscription-based such as StarCraft, Diablo, Call of Duty and WarCraft. This organization “focuses on diversified categories of games which include action sports, simulation, first-person action, racing, role-playing, action and adventure and music-based gaming.”64 This is particularly evident with its recent acquisition strategy of Bizarre Creations in order to...
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