Understanding the Strategies of Activision Blizzard

Understanding the Strategies of Acti imaging skin rash, Inc. What is the vision of Activision snowstorm, Inc.? Activision blizzard, Inc. s corporate vision is to be a worldwide attraction in the development, publishing, and dispersal of quality interactional pastime software, online content and run that deliver a passing satisfying entertainment experience (Activision efflorescence 2013 mo Form 10-K/A Amended one- division Report). crosswise integrating &038 Synergy Activision snowstorm, Inc. s approach to success. Activision Blizzard, Inc. s a worldwide online, in the flesh(predicate) computer, console, handheld, and mobile granular publisher (Activision Blizzard 2011 one-year Report). The participation was created via the uniting 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 use ups three separate operating segments. Activision Publishing, Inc. , Blizzard Entertainment, Inc. , and Activision Blizzard distribution. Activision Blizzard, Inc. holds leading marketplace positions across of all timey major category of the rapidly growing synergistic entertainment software industry (Activision Blizzard 2011 Annual Report), and is a authorized example of synergy, a situation where the final product is more worthy than the sum of it individual parts (Turow 175), at work.What is the competitive environment for Activision Blizzard, Inc.? The synergetic entertainment industry is intensely competitive with new products and platforms regularly introduced. Competitors diversify in size from small companies with limited resources to large corporations who may admit gre ater financial, marketing, 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 television receiver support 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 various(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, such as motion pictures, television, social networking, online casual entertainment and music (Activ ision Blizzard 2013 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 perception 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? grow product development Activision Blizzard, Inc. s creating a publishing arm that pull up stakes bring third-party mobile games to market. Through the program, it give 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 st and by with this transition (Duryee, Tricia. Activision Starting to Take the Plastic Wrap off Its rambling Strategy. each(prenominal)ThingsDigital. com, 13 Jun 2012. Web). Increase online capability &038 functionality access new customers &038 interviews 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 give 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 drift 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 call of different offering s or approaches 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 among the real and virtual worlds Riding an unprecedented wave of success, Activision Blizzard, Inc. will nominate 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 clear the growing beg of digital content distribution without issue.Many of its video game s and content expansions are already available for direct download. For example, Activision Publishings in advance(p) new online service, Call of Duty Elite, which launched with Call of Duty Modern state of war 3 is one of the fastest growing premium online services ever created. As of January 2012, more than seven meg gamers had registered for the service, which includes more than 1. 5 jillion 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 products ar e directed (Turow 36), are males 18 45 who account for over 55% of all gamers and are the back jam 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 real 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 dem and 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 intelligence operation hold 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 paper 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 journal article Miller, Z. , &038 Umphress, J. , &038 Wang, B. (2012). Activision Blizzard, Inc. (NASDAQ ATVI). Krause Fund Research Fall 2012 engineering science, 13 November 2012. Retrieved from The University of Iowa Research and Technology Department. Web. From the text Turow, Joseph, Media Today An door to Mass Communication, quaternary edition, New York, NY Routledge, 2011. Chapter 2, devising 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 well-disposed Pros a nd 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.