Activision Blizzard SWOT & PESTLE Analysis

Activision Blizzard, Inc. is an American computer game company based in Santa Monica, California. It’s one of the most important game company within the Americas and Europe in terms of revenue and market capitalization. SWOT analysis is essentially a vital strategic planning tool which is employed to analyze strategic factors impacting an organization. It's a handy technique to research, inspect and weigh out the different Strengths (S), Weakness (W), Opportunities (O) & Threats (T) that Activision Blizzard is facing in its current business environment. The core purpose of the SWOT matrix is to spot the strategies that a corporation can employ to leverage its competitive advantages, grab opportunities, counter threats, and workout on dissolving its weaknesses.

As one of the leading organizations in its industry, Activision Blizzard has numerous strengths that enable it to thrive within the market place. These strengths not only help it to guard its wallet share in existing markets but also helps in penetrating new markets with its strong product portfolio gaining competitive advantage. Strategic alliances and acquisitions have helped the gaming giant conquer rapid growth. Activision Blizzard has some inherent weaknesses due to reliance on third party for few products. In the wake of the pandemic, the gaming wizard has increased its gamut of offerings, thanks to differentiated experience using latest technology and growth in mobile gaming. The company faces external hindrances due to high competition in the industry, piracy being a potential killer. New technologies developed by competitors or rapid market technology disruptors might be significant threats thwarting growth.

The SWOT analysis for Activision Blizzard is presented below in a matrix followed by a detailed analysis

SWOT & PESTLE (combined)
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Detailed SWOT Analysis of Activision Blizzard

PESTLE analysis is a strategic tool to analyze the macro environment of the organization. PESTLE stands for - Political, Economic, Social, Technological, Legal & Environmental factors; These factors collectively impact the macro environment of an organization. PESTEL/PESTLE/PEST analysis provides greatdetail about operating challenges that Activision Blizzard will face in the prevalent macro environment alongside competitive forces. For example an industry may be highly profitable with a strong growth potential but it won’t be of much good if the company is situated in an unstable political environment. Political factors play an important role in long term profitability. Political instability and tensions poses threats to the company. The economic factors such as inflation, deflation, aggregate demand and supply, interest rates, foreign exchange rates, etc. affect the company’s environment to a great extent.

Society’s culture and way of doing things impact the culture of a corporation in an environment. Shared beliefs and attitudes of the population play a great role in how marketers at Activision Blizzard, Inc. will understand the customers of a given market and how they design the marketing message for Multimedia & Graphics Software industry consumers.

Technology provides opportunities due to emerging innovations and threat due to risk of emergence of mobile gaming and free-to-play games. Different countries have different laws which affect Activision Blizzard due to its wide reach in legal aspects. There is even increased regulatory scrutiny on content and risk of inadequate intellectual property laws. With regards to environmental factors Activision Blizzard has commented on using environment friendly packing whenever possible. It also uses soy-based inks for printing, limiting the toxic content.

The PESTLE analysis for Activision Blizzard is presented below in a nutshell followed by detailed analysis

SWOT & PESTLE (combined)
Complete Report
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Detailed Pestle Analysis of Activision Blizzard

• Activision Blizzards SWOT and PESTLE analysis report demonstrates an understanding of the complex internal and external factors shaping the brand and its operations.
• SWOT analysis is a tool to analyze the internal and external factors. Internal analysis evinces a discussion on how Activision Blizzard can ameliorate its strengths and overcome its weaknesses, whereas the external analysis helps to identify the opportunities for development and eliminate threats that can hamper growth.
• The PESTLE analysis gives a bird’s eye view of the whole environment (macro factors) of Activision Blizzard from many different angles that one wants to check and keep a track of while contemplating a certain idea/plan.
• The analysis report helps the users to understand the business models of Activision Blizzard with regards to influencers like political, economic, social, technological, legal and environmental factors.
• Activision Blizzard’s comprehensive analysis to conclude information about its company position, marketing strategy, business plans and performance of it’s brands, partners and subsidiaries.
• A summary of Activision Blizzard’s mission, vision and unique strategies to capture the market.
• Record of strategic initiatives extended by Activision Blizzard to stay ahead of its competitors and attain competitive advantage.
• A brief idea about company’s mergers, acquisitions, profit appraisal, deals, alliances/partnership/ventures.
• Identifying the core values, key performance indicators, and success factors that contribute to sustainable growth for Activision Blizzard.