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Activision Blizzard SWOT and PESTLE Analysis

ID : 52806253| Jul 2023| 23 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. The Company currently includes four business units: Activision Publishing, Blizzard Entertainment, King Digital Entertainment and Activision Blizzard Distribution. The major products produced by Activision Blizzard include Call of duty, Tony Hawk’s, Spyro, Skylanders & Sekiro 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 been trailblazers, breaking several release records and catapulted Activision as the largest game company in Americas and Europe in terms of market capitalization and revenue. Based on the 2022 annual reports, platform providers like Sony, Apple, Google, Microsoft, Facebook, Valve or retailer like Best Buy, GameStop, Target, and Walmart also contribute significantly to this gaming giant’s net revenues (approximately 50% of their revenues) in addition to end customers. As of 2023, the company had approximately 13,000 employees.

The USP or Unique Selling Proposition of Activision Blizzard lies in being the world's largest gaming company in the Americas and Europe by market capitalization as of 2023. Activision Blizzard’s mission statement reads “connecting and engaging the world through epic entertainment – has never been more relevant and important. As we continue to execute on our strategy, our investments in our biggest opportunities continue to allow us to provide superior shareholder returns.”

Activision Blizzard Revenue :


US $7.5 billion - FY ending 31st December 2022 (Y-O-Y decline of -14%)
US $8.8 billion - FY ending 31st December 2021

Competitive Analysis of Activision Blizzard

SWOT
PESTLE

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

StrengthsWeaknesses
1. Broad distribution and reach
2. Robust product portfolio of leading mobile gaming franchises
3. Strategic partnerships, mergers, and acquisitions
4. Digital revenue streams more recurring and providing relatively higher profit margins
5. Commitment to Workplace Excellence and Diversity
1. High dependence on a few products
2. Reliance on third-party platforms
3. Seasonality in sale increases risk
4. Lawsuits regarding toxic workplace environment
5. Possible failure in effectively manage growth and business complexity
OpportunitiesThreats
1. Merging with Microsoft enhances competitive edge in tech advancements.
2. Target expanding gaming markets in Asia.
3. Capitalize on growing esports industry
4. Emergence of platforms like cloud gaming and VR.
5. Rise of free-to-play games & potential to expand mobile gaming audience
1. Increasing importance of free-to-play games
2. Impact of Technological Innovation
3. High competition in the industry
4. Piracy a persistent problem for the gaming industry
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Detailed SWOT Analysis of Activision Blizzard

Strength

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 Battle.net 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. Robust 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. The company's diverse interactive content portfolio has attracted millions of customers, resulting in a substantial increase in net bookings for the FY 2022, compared to the previous year. This growth was primarily driven by a $205 million increase in King net bookings, fueled by higher in-game player purchases within the Candy Crush franchise. Additionally, a $185 million increase in Blizzard net bookings was influenced by the anticipation and success of Diablo Immortal and Overwatch 2. Additionally, the company also partners with companies like Apple, Facebook, Google, Microsoft, Sony, and Valve to serve the purpose of marketing, sales as well as financial gain through licensing fees.

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

Weakness

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Opportunity

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Threat

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Major Competitors :

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TABLE OF CONTENTS
DELIVERY AND FORMAT
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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.

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References used in Activision Blizzard SWOT & PESTLE Analysis Report

1. Games cultural impact on society - https://www.weforum.org/agenda/2019/12/video-games-culture-impact-on-society/
2. Activision Blizzard union could revolutionize the games industry forever - https://www.inverse.com/gaming/activision-blizzard-union-abetterabk-could-change-the-games-industry
3. Activision Blizzard Commits to Expanded Workplace Initiatives, Reaches Agreement with the EEOC | Business Wire - https://www.businesswire.com/news/home/20210927005844/en/Activision-Blizzard-Commits-to-Expanded-Workplace-Initiatives-Reaches-Agreement-with-the-EEOC
4. Game publishers’ detail green credentials - https://www.gamesindustry.biz/articles/game-publishers-detail-green-credentials

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

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

SWOT & PESTLE.com (2025). Activision Blizzard SWOT and PESTLE Analysis - SWOT & PESTLE.com. [online] Available at: https://www.swotandpestle.com/activision-blizzard/ [Accessed 14 Jan, 2025].

In-text: (SWOT & PESTLE.com, 2025)

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

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