PAMANTASAN NG LUNGSOD NG MAYNILA

(University of the City of Manila)

Intramuros, Manila

Graduate School of Management

Case Title: Acting on a Vision of Change

Submitted by:
Consuegra, Vanesa Lou

Submitted to:
Dr. Honorata Pagaduan

April 2018
VIEWPOINT

Robert Kotick - an American businessman who serves as CEO of Activision

Blizzard

TIME CONTEXT
2007

I. PROBLEM STATEMENT

The merger of the two big company that known now as Activision Blizzard
made them as the top in gaming industry.

How are they going to make the franchise of their products, that has been
proven in development expertise, maintain their stand as the top providers in
gaming to its subscribers?

II. STATEMENT OF THE OBJECTIVE

This study aims to provide a new strategic planning on how pro-gamers and
non-pro gamers subscribes the product offers by Activision Blizzard, since the
competition in the gaming industry is now globally competitive. In todays
stand in technology, it has a big potential to the other company to invest in
this line of business. This is also to be able to develop and create a new strategy
that will suits to all the target market in this field.

III. AREAS OF CONSIDERATION

To provide the better understanding of the case, the following are the factors
from the internal and the external environment were identified:
INTERNAL ANALYSIS
Strengths

 Worldwide popularity
 Good Returns on Capital Expenditure
 Strong Free Cash Flow
 Strong distribution network
2 of 6
  Competitiveness in the market
 Product innovation

Weaknesses

 Recessions
 Intense competition means limited margins
 High product development costs
 Not highly successful at integrating firms with different work culture

EXTERNAL ANALYSIS
Opportunities

 Fast growing online gaming segment

 Expansion into other entertainment mediums
 Increase in use of interactive peripheral based games
 Mobile and Online gaming
Threats

 Piracy (Imitation of the counterfeit)

 New technologies developed by the competitor or market disruptor
 Failure of high-cost game titles
 Other companies are blending the genres of games
 Government regulations

IV. ASSUMPTIONS
Propose a necessary strategy on how to develop more the products offered
to the target market. Since the target market is any range of age now, it will
have a broad opportunity and advantage to the company. By developing
innovative business models like subscription-based of online gaming and
researching the possible trends from today until the future we can now create
a new strategy.

V. ALTERNATIVE COURSES OF ACTION

The following are the proposed alternative courses of action in this study to
3 of 6
 determine the possible solution in the problem.

ACA 1. Activision Blizzard should spend in research and development of

today’s trends and hire people that globally competitive in the gaming
industry.

ACA 2. Activision Blizzard should continue transforming into a global

entertainment conglomerate that can take advantage of today’s
emerging trends.

ACA 3. Activision Blizzard should continue expanding their market by

branching out new sectors of gaming retailing.

VI. ANALYSIS

ACA 1. Activision Blizzard should spend in research and development of

today’s trends and hire people that globally competitive in the gaming
industry.

Advantage: Research and development is very important to all the distinct

types of industry to be knowledgeable on the trends that will suit to its target
market. Hiring competitive people will make the company competitive as well.

Disadvantage: It will consume a lot of time and money by doing research

and not 100% that people you will hire is really a competitive one.

ACA 2. Activision Blizzard should continue transforming into a global

entertainment conglomerate that can take advantage of today’s emerging
trends.

Advantage: The fast changing trends and references of the people is very
challenging to the company to meet the taste of the market. By continuing
transforming and developing, the market has now different preferences to
choose that suits to their options.
Disadvantage: Market can subscribe to any other company that offers the
same, if they see that the offers by other company is more favorable to their
taste.

ACA 3. Activision Blizzard should continue expanding their market by

branching out new sectors of gaming retailing.

4 of 6
 Advantage: Aside from gaming, they can still expand the company offers
to the other field of business. This will open to the new opportunity not only
focusing in the online gaming.

Disadvantage: It will cost time and money for the research and
implementation. They may not be succeeded in other line of business.

Alternative Course of Action Decision Matrix

Criteria ACA 1 ACA 2 ACA 3

Ease of Implementation 2 3 1
Timeliness 2 3 1
Efficiency 3 2 1
TOTAL Score 7 8 3

Scores Legend: 1 – Good, 2 – Better, 3- Best

The table shows that ACA 2 having a 8 score has a strategic position among
the other two which only has 7 and 3 scores. When it comes to overall ease of
implementation, timeliness and efficiency, the ACA 2 is a strong opportunity
and that can be implemented and succeeded.

VII. CONCLUSION

The researcher come up to two solutions of the existing problem, so the researcher
used the “hybrid method” to solve existing problem. ACA 2 and ACA 1 could be
the best solution to the problem.

5 of 6
VIII. PLAN OF ACTION

Plan of Action
Responsible/
Strategy Objectives Persons Timeline
Involved
Activision Blizzard should To continue CEO, Board 2007 – (as
continue transforming into a providing the of Directors, long as the
global entertainment market an Developers trends of the
conglomerate that can entertainment market is
take advantage of today’s that suits to their changing)
emerging trends. preferences. This
can also
maintain the
stand of the
company of
being top in the
gaming industry.
Activision Blizzard should To develop CEO, 2007 –
spend in research and knowledge Research December
development of today’s regarding with and 2020 (until the
trends and hire people that the industry. And Development ongoing
globally competitive in the meets the Team research and
gaming industry. standard of the development
people in terms is completed)
of entertainment.

6 of 6