Understanding the Strategies of Activision Blizzard

Understanding the Strategies of Acti r eerie rash, Inc. What is the vision of Activision efflorescence, Inc.? Activision skin rash, Inc. s corporate vision is to be a worldwide attraction in the development, publishing, and diffusion of quality synergetic pastime software, online meat and function that deliver a super satisfying entertainment experience (Activision rash 2013 moment Form 10-K/A Amended formly Report). plane integration & Synergy Activision blizzard, Inc. s approach to success. Activision Blizzard, Inc. s a worldwide online, individual(prenominal) computer, console, handheld, and mobile granulose publisher (Activision Blizzard 2011 yearly Report). The attach to was created via the nuclear fusion 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, line of battle outlets and ultimately allowed the formerly separate companies to profit from the other(a)s expertise (Turow 175). The new company expenditures three separate operating segments. Activision Publishing, Inc. , Blizzard Entertainment, Inc. , and Activision Blizzard distribution. Activision Blizzard, Inc. holds leading commercialize positions across every major category of the rapidly growing synergistic entertainment software industry (Activision Blizzard 2011 Annual Report), and is a innocent example of synergy, a situation where the final product is more invaluable 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 interpolate in size from small companies with limited resources to large corporations who may lease greater financial, mar keting, and product development resources than Activision Blizzard, Inc. (Activision Blizzard 2013 SEC Form 10-K/A Amended Annual Report). Whom is Activision competing with in the marketplace? Activision Blizzard, Inc. competes primarily with other publishers of PC, online and goggle box patch console interactive entertainment software. Most similar in operating structure is Electronic Arts, which has the largest portfolio of blockbuster games, including many sports titles, and other game franchises with long histories of success. Sony, Nintendo and Microsoft compete directly with them in the development of software titles for their respective(prenominal) platforms.They also compete for the leisure time and discretionary spending of consumers with other interactive entertainment companies, as well as with providers of different forms of entertainment, much(prenominal) as motion pictures, television, social networking, online casual entertainment and music (Activision Blizzard 2 013 SEC Form 10-K/A Amended Annual Report). What does Activision see as their primary competition? Activision Blizzard, Inc. elieves the primary competitive factors in the interactive entertainment industry include product features, game quality, and playability brand name realization compatibility of products with popular platforms access to distribution channels online capability and functionality ease of use price marketing support and quality of customer service. (Activision Blizzard 2013 SEC Form 10-K/A Amended Annual Report). What strategies and specific activities is Activision considering to compete with others? spread out product development Activision Blizzard, Inc. s creating a publishing arm that leave behind bring third-party mobile games to market. Through the program, it depart assist independent game makers with funding, development, distribution and promotion of their titles across both iPhone and iOS. The company is collaborating with Flurry to help onesel f with this transition (Duryee, Tricia. Activision Starting to Take the Plastic Wrap off Its rambling Strategy. anyThingsDigital. com, 13 Jun 2012. Web). Increase online capability & functionality access new customers & sense of hearings Skylanders Is officially Activisions newest $1 Billion Franchise. The Skylanders franchise became the first kids video game IP to cross the $1 billion mark in just 15 months, and I think we are still just starting to date its potential, Activision publishing CEO Eric Hirshberg said in a statement (LeJacq, Yannick . Skylanders Is Officially Activisions newest $1 Billion Franchise. IBTimes. com, 11 Feb 2013. Web. ). Access new distribution channels Activision Blizzard, Inc. announces in-game live be adrift via YouTube for Black Ops II (McGlaun, Shane. Activision announces in-game live streaming via YouTube for Black Ops II. SlashGear. com, 8 Nov 2012. Web. ). What might an Activision customer see in scathe of different offerings or appro aches because of the strategies the company is undertaking? Increased Content and Online Services. Activision Blizzard, Inc. s shift towards digital delivery of content will result in more diverse online product offerings. Expansion of Mobile Products and Services Activision Blizzard, Inc. will continue to expanding into the mobile arena by supporting legacy franchises as well as creating new brand assets.A Narrowing of the Gap surrounded by the real and virtual worlds Riding an unprecedented wave of success, Activision Blizzard, Inc. will elicit channelitional Skylander style kids games. Which one of the six changes in media is Activisions strategies addressing well? Distribution of products across media boundaries Activision has been very successful at creating methods of distribution that allows businesses to make money back on products (Turow 186). Activision Blizzard, Inc. will gull the growing gather up of digital content distribution without issue.Many of its video gam es and content expansions are already available for direct download. For example, Activision Publishings forward-looking new online service, Call of Duty Elite, which launched with Call of Duty Modern war 3 is one of the fastest growing premium online services ever created. As of January 2012, more than seven one thousand meg gamers had registered for the service, which includes more than 1. 5 million users who purchased premium annual memberships. Additionally, the franchise is estimated to have had over 40 million monthly active users across five Call of Duty titles (Activision Blizzard 2011 Annual Report). Which of the six changes in media is Activision neglecting to address? Audience Segmentation Activision Blizzard specializes in developing, publishing and distributing first-person action games, which account for approximately 16% of the interactive entertainment industrys revenue (Krause Fund Research, Web). Activision Blizzards target audience, the people whom their prod ucts are directed (Turow 36), are males 18 45 who account for over 55% of all gamers and are the back turn out of the industry (Krause Fund Research, Web). Activision Blizzard has been wildly successful with their media franchises, properties that are highly profitable over time and in many media formats beyond their master key appearance (Paul, Nora, slide 10), but has neglected to address the need for audience segmentation, creating products designed to reach different types of people (Turow 160). Due to this dependence on a specific target audience, failure to achieve anticipated results by one or more products may significantly harm their business.For example, Activision Blizzards four largest first-person action franchises (Paul, Understanding the Strategies of Media Giants slide 10), accounted for approximately 83% of net revenues, and a significantly higher percentage of their operating income, for the year (Activision Blizzard 2013 SEC Form 10-K/A Amended Annual Report) . If consumer demand trends away from first-person action games and Activision Blizzard fails to attract new audiences or add other sources of revenue, their lack of audience segmentation could significantly harm their business. References From word oblige McGlaun, Shane. Activision announces in-game live streaming via YouTube for Black Ops II. SlashGear. com, 8 Nov 2012. Web. From news article Duryee, Tricia. Activision Starting to Take the Plastic Wrap off Its Mobile Strategy. All Things Digital. com, 13 Jun 2012. Web From news article LeJacq, Yannick. Skylanders Is Officially Activisions newest $1 Billion Franchise. IBTimes. com, 11 Feb 2013. Web. From SEC make known Activision Blizzard, Inc. Form 10-K/A, Amended Annual Report for the fiscal year ending December 31, 2012. Web. From Annual report Activision Blizzard, Inc. 2011 Annual report for fiscal year ending Dec 31, 2011.Web. From ledger article Miller, Z. , & Umphress, J. , & Wang, B. (2012). Activision Blizzard, Inc . (NASDAQ ATVI). Krause Fund Research Fall 2012 engine room, 13 November 2012. Retrieved from The University of Iowa Research and Technology Department. Web. From the text Turow, Joseph, Media Today An inlet to Mass Communication, quaternate edition, New York, NY Routledge, 2011. Chapter 2, reservation Sense of the Media Business Identifying an Audience for Mass Media Content, p. 36. From the text Turow, Joseph, Media Today An Introduction to Mass Communication, 4th edition, New York, NY Routledge, 2011.Chapter 5, A World of Blurred Media Boundaries Horizontal Integration, p. 175. From the text Turow, Joseph, Media Today An Introduction to Mass Communication, 4th edition, New York, NY Routledge, 2011. Chapter 5, A World of Blurred Media Boundaries Synergy, p. 175. From the text Turow, Joseph, Media Today An Introduction to Mass Communication, 4th edition, New York, NY Routledge, 2011. Chapter 5, A World of Blurred Media Boundaries Contrasting Views on the social Pros and Con of Media Trends, Distribution allows businesses to make money back on products, p. 86 From the text Turow, Joseph, Media Today An Introduction to Mass Communication, 4th edition, New York, NY Routledge, 2011. Chapter 5, A World of Blurred Media Boundaries Audience Segmentation, creating products designed to reach different types of people, p. 160. From PowerPoint origination Paul, Nora, Jour 1001 002, Chapter 6, Understanding the Strategies of Media Giants, PowerPoint presentation in Introduction to Mass Communication, Slide 10 Media Franchise, February 10, 2013.