Activision Blizzard SWOT Analysis: Strengths, Weaknesses, Opportunities, & Threats - Research Paper

Introduction

The Activision Blizzard has maintained its marketing position through the critical analysis as well as a review of the SWOT analysis that is an interactive process that requires effective coordination in its departments including marketing, finance as well as information management system. The SWOT Analysis framework in Activision Blizzard identifies the strengths and weaknesses as the internal factors and the opportunities and threats as external strategic factors.

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The strengths of the Activision Blizzard are numerous and make it thrive in the market place. The strengths of Activision Blizzard help in protecting the market share and also in penetrating the market. Some of the strengths include good returns on the capital expenditure which makes Activision Blizzard successful at the execution of its projects by building new revenue streams. Another strength is the successful track record that ensures effective integration of the complimentary firms through mergers and acquisition. The automation of activities is also a strength of the Activision Blizzard and ensures consistency of quality to the products of Activision Blizzard thus enabling the company to scale up based on the demands "ACTIVISION BLIZZARD, INC. (Activision Blizzard or the company) is an interactive entertainment publishing company. It is engaged in publishing games across online, personal computer (PC), video game console, tablet, handheld, and mobile platforms. The company operates in the US, Europe and Asia. It is headquartered in Santa Monica, California and employed 6,900 people as on December 31, 2013. The company recorded revenues of $4,583 million during the financial year ended December 2013 (FY2013), a decrease of 5.6% compared to FY2012. The operating profit of the company was $1,372 million in FY2013, a decrease of 5.4% compared to FY2012. The net profit was $1,010 million in FY2013, a decrease of 12.1% compared to FY2012. Other strengths include strong free cash flow, strong distribution network, successful marketing strategies, and reliable suppliers.

The weaknesses of Activision Blizzard include poor integration of films with a different work culture that leads to its share failure to merge with the various work culture. Poor product demand is another weakness of the Activision Blizzard that leads to a high rate of missed opportunities as compared to its competitors. Other weaknesses are the limited success outside the core business, a large gap in the product range and poor financial planning. The low investment in research and development that is below other industries does not enable Activision Blizzard to compete with the leading players in terms of innovation. Also, the lack of choice gives the competitors foothold in the market. With the company unable to handle challenges present, it loses its small market.

The opportunities for Activision Blizzard which is an external strategic factor entails stable free cash flow which provides opportunities for investing in the adjacent product segment. As a result, the window for Activision Blizzard is opened based on the other product categories. The market development ensures the dilution of the competitors' advantage hence increasing the Activision Blizzard's competitiveness. The organization's core competencies are opportunities that provide the success of the Activision Blizzard. With the government green drive, there is an open opportunity for procurement of products. The environmental policies are opportunities that create a level playing field for the players in the Activision Blizzard. Also, the economic uptick which increases the customer spending is an opportunity for Activision Blizzard for capturing customers while expanding the market share.

The threats Activision Blizzard is facing include liability laws in different countries which requires a change in policies in the markets. With the Activision Blizzard operating in various countries, it is exposed to the currency fluctuation which is a threat to the volatile climate. Environmental regulations are a threat to the existing products. Also, the demand for the highly profitable products seasonally is a threat to the industry given the impact it has on the profitability of the company. The imitation of the counterfeit, as well as the low-quality products, is a threat to the Activision Blizzard due to the emerging markets. The inadequate supply of innovative products has led to high and low swings in sales. The new technologies which have been developed by the market disruptors is also a severe threat to the industry.

Reference

"Activision Blizzard, Inc." Activision Blizzard, Inc. SWOT Analysis, 2018.