Understanding the Strategies of Activision Blizzard
Understanding the Strategies of Activision Blizzard, Inc.
What is the vision of Activision Blizzard, Inc.? Activision Blizzard, Inc.’s corporate vision is to be a “worldwide leader in the development, publishing, and distribution of quality interactive entertainment software, online content and services that deliver a highly satisfying entertainment experience (Activision Blizzard – 2013 SEC Form 10-K/A Amended Annual Report).” Horizontal Integration & Synergy; Activision Blizzard, Inc.’s approach to success. Activision Blizzard, Inc. is “a worldwide online, personal computer, console, handheld, and mobile game publisher (Activision Blizzard – 2011 Annual Report).” The company was created via the merger of Activision, Inc., Sego Merger Corporation, Vivendi S.A., VGAC LLC, and Vivendi Games, Inc. (Activision Blizzard – 2013 SEC Form 10-K/A Amended Annual Report). Utilizing horizontal integration, the merger integrated “ownership of production facilities, distribution channels, exhibition outlets and ultimately allowed the formerly separate companies to profit from the others expertise (Turow 175).” The new company uses three separate operating segments. Activision Publishing, Inc., Blizzard Entertainment, Inc., and Activision Blizzard distribution. Activision Blizzard, Inc. holds “leading market positions across every major category of the rapidly growing interactive entertainment software industry (Activision Blizzard – 2011 Annual Report),” and is a classic example of synergy, “a situation where the final product is more valuable than the sum of it individual parts (Turow 175),” at work. What is the competitive environment for Activision Blizzard, Inc.? “The interactive entertainment industry is intensely competitive with new products and platforms regularly introduced. Competitors vary in size from small companies with limited resources to large corporations who may have greater financial, marketing, and product development resources than Activision
What is the vision of Activision Blizzard, Inc.? Activision Blizzard, Inc.’s corporate vision is to be a “worldwide leader in the development, publishing, and distribution of quality interactive entertainment software, online content and services that deliver a highly satisfying entertainment experience (Activision Blizzard – 2013 SEC Form 10-K/A Amended Annual Report).” Horizontal Integration & Synergy; Activision Blizzard, Inc.’s approach to success. Activision Blizzard, Inc. is “a worldwide online, personal computer, console, handheld, and mobile game publisher (Activision Blizzard – 2011 Annual Report).” The company was created via the merger of Activision, Inc., Sego Merger Corporation, Vivendi S.A., VGAC LLC, and Vivendi Games, Inc. (Activision Blizzard – 2013 SEC Form 10-K/A Amended Annual Report). Utilizing horizontal integration, the merger integrated “ownership of production facilities, distribution channels, exhibition outlets and ultimately allowed the formerly separate companies to profit from the others expertise (Turow 175).” The new company uses three separate operating segments. Activision Publishing, Inc., Blizzard Entertainment, Inc., and Activision Blizzard distribution. Activision Blizzard, Inc. holds “leading market positions across every major category of the rapidly growing interactive entertainment software industry (Activision Blizzard – 2011 Annual Report),” and is a classic example of synergy, “a situation where the final product is more valuable than the sum of it individual parts (Turow 175),” at work. What is the competitive environment for Activision Blizzard, Inc.? “The interactive entertainment industry is intensely competitive with new products and platforms regularly introduced. Competitors vary in size from small companies with limited resources to large corporations who may have greater financial, marketing, and product development resources than Activision