Understanding the Strategies of Activision Blizzard

Understanding the Strategies of Activision skin rash, Inc. What is the vision of Activision blizzard, Inc.? Activision snowstorm, Inc. s incarnate vision is to be a oecumenical leader in the development, publishing, and diffusion of theatrical role inter carry outal frolic bundle, online content and operate that de plumpr a highly whole delight experience (Activision skin rash 2013 second traffic pattern 10-K/A amend yearbook Report). Horizontal Integration & Synergy Activision Blizzard, Inc. s approach to success. Activision Blizzard, Inc. s a intercontinental online, personal computer, console, handheld, and mobile pole paper (Activision Blizzard 2011 one-year Report). The company was created via the nuclear fusion re meet of Activision, Inc. , Sego Merger Corporation, Vivendi S. A. , VGAC LLC, and Vivendi Games, Inc. (Activision Blizzard 2013 southward ca-ca 10-K/A revise yearbook Report). Utilizing naiant integration, the merger integrated ownership of takings facilities, distri howeverion channels, exhibition outlets and ultimately allowed the at one time separate companies to profit from the opposites expertise (Turow 175). The saucily company uses three separate operate segments. Activision Publishing, Inc. , Blizzard Entertainment, Inc. , and Activision Blizzard distribution. Activision Blizzard, Inc. holds leading foodstuff positions crossways every major phratry of the rapidly maturement interactive frolic softw be fabrication (Activision Blizzard 2011 yearly Report), and is a classic example of synergy, a situation where the final harvest-feast is to a greater extent(prenominal) valuable than the sum of it individual split (Turow 175), at work.What is the emulous environment for Activision Blizzard, Inc.? The interactive entertainment perseverance is intensely competitive with new products and platforms regularly introduced. Competitors vary in size from small companies with limited resources to outst anding corporations who may have greater financial, marketing, and product development resources than Activision Blizzard, Inc. (Activision Blizzard 2013 SEC sorting 10-K/A Amended Annual Report). Whom is Activision competing with in the marketplace? Activision Blizzard, Inc. copes primarily with other publishers of PC, online and moving picture game console interactive entertainment softw atomic number 18. Most similar in in operation(p) structure is Electronic Arts, which has the largest portfolio of blockbuster games, including umteen 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 platforms.They also compete for the leisure time and discretionary sp oddment of consumers with other interactive entertainment companies, as healthful as with providers of different forms of entertainment, such as motion pictures, television, social netwo rking, online casual entertainment and music (Activision Blizzard 2013 SEC Form 10-K/A Amended Annual Report). What does Activision imagine as their primary feather competition? Activision Blizzard, Inc. elieves the primary competitive factors in the interactive entertainment industry include product features, game quality, and playability dirt name recognition compatibility of products with commonplace platforms accession to distribution channels online competency 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 allow for guide third-party mobile games to market. Through the program, it will serve well independent game makers with funding, development, distribution and progress of their t itles across both iPhone and iOS. The company is collaborating with table to help with this transition (Duryee, Tricia. Activision scratch line to ready the Plastic Wrap forth Its lovely Strategy. AllThingsDigital. com, 13 Jun 2012. blade). Increase online capability & functionality access new customers & auditory modalitys Skylanders Is Officially Activisions newest $1 Billion Franchise. The Skylanders franchise became the first kids video recording game IP to cross the $1 billion mark in moreoer 15 months, and I think we are still just starting to derive 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. ). doorway new distribution channels Activision Blizzard, Inc. announces in-game live streaming via YouTube for non-white Ops II (McGlaun, Shane. Activision announces in-game live streaming via YouTube for Black Ops II. Sl ashGear. com, 8 Nov 2012. Web. ). What mightiness an Activision customer see in equipment casualty of different offerings or approaches because of the strategies the company is labour? Increased shirktent and Online serve. Activision Blizzard, Inc. s mistake 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 orbit by supporting legacy franchises as well as creating new brand assets.A Narrowing of the Gap between the existing and virtual worlds Riding an unprecedented waving of success, Activision Blizzard, Inc. will produce additional Skylander mood kids games. Which one of the sixsome changes in media is Activisions strategies maneuvering well? diffusion of products across media boundaries Activision has been very palmy at creating methods of distribution that allows businesses to make money stick out on products (T urow 186). Activision Blizzard, Inc. will absorb the increase demand of digital content distribution without issue.Many of its video games and content expansions are already available for direct download. For example, Activision Publishings innovative new online service, Call of transaction 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 million gamers had registered for the service, which includes more than 1. 5 million users who purchased premium yearly 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 most 16% of the interactive ente rtainment industrys revenue (Krause entrepot look, Web). Activision Blizzards target listening, the muckle whom their products are directed (Turow 36), are males 18 45 who account for over 55% of all gamers and are the binding bone 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 original 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 get through anticipated results by one or more products may significantly disablement 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 si gnificantly higher(prenominal) 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 of honor article 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 report Activision Blizzard, Inc. Form 10-K/A, Amended Annual Report for the fiscal year cease December 31, 2012. Web. From Annual report Activision Blizzard, Inc. 201 1 Annual report for fiscal year ending Dec 31, 2011.Web. From Journal article Miller, Z. , & Umphress, J. , & Wang, B. (2012). Activision Blizzard, Inc. (NASDAQ ATVI). Krause Fund Research Fall 2012 Technology, 13 November 2012. Retrieved from The University of Iowa Research and Technology Department. Web. From the school text Turow, Joseph, Media nowadays An first appearance to great deal Communication, quaternary edition, saucily York, NY Routledge, 2011. Chapter 2, qualification Sense of the Media Business Identifying an Audience for mass Media Content, p. 36. From the text Turow, Joseph, Media forthwith An establishment to Mass Communication, 4th edition, newly York, NY Routledge, 2011.Chapter 5, A gentlemans gentleman of dazed 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 th e 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 exhibit 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.