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Activision Blizzard SWOT & PESTLE Analysis

ID : 52806253| Jan 2021| 18 pages

COMPANY PROFILE -Activision Blizzard

Business Sector :Video Games

Operating Geography :United States, North America, Global

About Activision Blizzard :

Activision Blizzard Inc is an American video game holding company which is headquartered at Santa Monica, California. The company was originally incorporated in California in 1979 and was reincorporated in Delaware in 1992. In June 2008, Activision Blizzard was founded after the merger of Activision, Inc. and Vivendi Games. Activision Blizzard currently includes five business units: Activision Publishing, Blizzard Entertainment, King, Major League Gaming, and Activision Blizzard Studios. The major products produced by Activision Blizzard include Call of duty, Guitar Hero, Tony Hawk’s, and Spyrol/Skylanders through the Activision Studios, StarCraft, Diablo, Heroes of the Storm, World of Warcraft, etc., through Blizzard Entertainment and mobile titles including Candy Crush Saga through King. These titles have broken a number of release records and have made Activision the largest game company in the Americas and Europe in terms of market capitalization and revenue as per the reports.
Based on the 2019 annual reports, platform providers like Sony, Apple, Google, Microsoft or retailers like Walmart or GameStop also contribute significantly of their net revenues (approximately 40% of their revenues) in addition to end customers.
Activision Blizzard’s mission statement reads “Dedicated to creating the most epic entertainment experiences.”

Activision Blizzard Revenue :

US $6,489 million - FY ending 31st December 2019 (Y-O-Y growth of (negative) -15.6%)
US $7,500 million - FY ending 31st December 2018

Competitive Analysis of Activision Blizzard


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

1. Broad distribution and reach
2. Strong product portfolio of leading mobile gaming franchises
3. Strategic partnerships and acquisitions
4. Digital revenue streams more recurring and providing relatively higher profit margins
5. Skilled labour force and recognized for positive work culture
1. High dependence on a few products
2. Reliance on third-party platforms
3. Seasonality in sale increases risk
1. Differentiated experience using latest technology
2. Increased user activity due to ongoing pandemic
3. Growth in interactive entertainment including mobile gaming
4. Opportunities to expand franchises outside of games
1. Increasing importance of free-to-play games
2. Effectively manage growth and business complexity
3. Impact of Technological Innovation
4. High competition in the industry
5. Piracy a persistent problem for the gaming industry
SWOT & PESTLE (combined)
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Detailed SWOT Analysis of Activision Blizzard


1. Broad distribution and reach:Many of the products produced by Activision Blizzard contain software which enables them to easily connect with customers directly. This results in ease of communication and marketing directly to the customer through customized advertising and in-game messaging based on consumer preferences and current trends. To establish a strong connect, the company has also indulged in activities like online social networks, other online advertising techniques; participation in cooperative advertising programs; direct response programs, etc. The company also receives support from hardware manufacturers, retailers in connection with their promotional efforts and producers of consumer products related to a game. The physical merchandise is also available for sale in outlets around the world, through mass market retailers (like Walmart, Target etc.), discount warehouses game speciality stores and other stores or through third party distribution or licensing. In addition to this, most of the products are also available in a digital format, which allows ease of purchase based on the convenience directly on the PC or mobile device. Blizzard also offers a distribution platform with communication features, social networking, player matching and other similar features designed to allow the people to connect irrespective of their games that they are playing on the platform.

2. Strong product portfolio of leading mobile gaming franchises: The company’s portfolio showcases leading mobile gaming franchises like Candy Crush, e-sports opportunities like Call of Duty League and Overwatch League and some of the leading PC and console gaming franchises like World of Warcraft, Star Craft etc. Over the time, based on their expertise and success, the company also plans to roll out media integrations across Activision Blizzard portfolio which will prioritise platforms based on their ability to provide better opportunities for the brand. This varied portfolio of interactive content has managed to garner millions of customers for the company; Overwatch (40 million), World of Warcraft (more than100 million players) to name a few of the trending games of the company. Additionally, due to the huge following, the company have also had the opportunity of partnering will companies like McFarlane (Collectible Figures), USAopoly (Risk and Monopoly board games in North America), Pyramid (Homeware, Accessories). These collaborations serve the dual purpose of marketing as well as financial gain through licensing fees.

The remaining section under "Strengths" is available only in the 'Complete Report' on purchase.


This section is available only in the 'Complete Report' on purchase.


This section is available only in the 'Complete Report' on purchase.


This section is available only in the 'Complete Report' on purchase.

Major Competitors :

SWOT & PESTLE (combined)
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Check Out Analysis of Other Relevant Companies

The Activision Blizzard SWOT and PESTLE Analysis report will offer the following:
  • 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.
References used in Activision Blizzard Analysis Report

1. Activision Blizzard fourth quarter and financial results 2019 -

2. Activision Blizzard annual report 2019 -

3. Activision Blizzard Recognized on Fortune's "100 Best Companies to Work For®" List for Fourth Consecutive Year -

4. Activision Blizzard product portfolio -

5. Activision Blizzard Consumer Products Group Brings Franchises of the Future, Esports and Fan-Favorite Properties to Licensing Expo 2018 -

The detailed complete set of references are available on request in the 'Complete report' on purchase.

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Activision Blizzard SWOT & PESTLE Analysis - SWOT & PESTLE.COM

SWOT & (2021). Activision Blizzard SWOT & PESTLE Analysis - SWOT & [online] Available at: [Accessed 03 Mar, 2021].

In-text: (SWOT &, 2021)

Copyrights and Disclaimer

Activision Blizzard SWOT and PESTLE analysis has been conducted by Pallavi Roy and reviewed by senior analysts from Barakaat Consulting.

Copyright of Activision Blizzard SWOT and PESTLE Analysis is the property of Barakaat Consulting. Please refer to the Terms and Conditions and Disclaimer for usage guidelines.

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