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Strategic Management Assignment Unilever and Blizzard

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Strategic Management Assignment Unilever and Blizzard
Manchester Business School Global MBA
Strategic Management
Course Assessment 1

Contents
1.1 Video Game Industry in the USA ----------------------------------------------------------3
1.2 Activision Blizzard Inc -----------------------------------------------------------------------3
2.1 Video Game Industry in USA: Porter’s Five Forces Analysis -----------------------4
2.2 Actvision Blizzard: BCG Portfolio Analysis ---------------------------------------------5
3.1 Ice Cream Market in Singapore: Strategic Group Analysis --------------------------6
3.2 Unilever: Resources and Capability Analysis -----------------------------------------7-8
4. References ----------------------------------------------------------------------------------------9

1.1 Video Game Industry in the USA
The video game industry includes video game software, hardware and digital gaming. The USA has the largest market share of 27% and revenue of $18.3 billion (Euromonitor, 2014). The industry is stagnant with an annual growth rate of 0.3% in 2013 (Euromonitor, 2014). The industry is also transforming from traditional PC or console software purchases to digital game downloads. Specifically, the mobile and tablets game segment of digital gaming in the USA has a strong 38% annual growth in 2013 (Newzoo Market Research, 2013). With the growing customer base and lower barrier in digital distribution, traditional gaming giants are losing market share to new entrants.

1.2 Activision Blizzard Inc

Activision Blizzard had a decrease in revenue of $273 million in 2013. Despite a 2% drop in margin in 2013, it is still very profitable at 22% net margin. Its biggest segment is video game software which contributes 53% of its total revenue. The company is ranked second in the gaming industry in USA with a value share of 16% in 2013 (Euromonitor, 2014). It is ranked first in the digital gaming segment with 13.6% share. Digital gaming has been their key focus, with


References: Activision Blizzard Inc (2014) Annual Report 2013 Activision Blizzard Inc (2014) Proxy Statement 2014 Blizzard.com (2014) Offical website of Blizzard Entertaiment Euromonitor (2014) Activision Blizzard Inc In Toys and Games (USA) Euromonitor (2014) Ice Cream in Singapore Euromonitor (2014) Video Games Industry Report Newzoo Market Research (2013) ExSmartphone and tablet gaming 2013 – Games market sector report SuperData Research (2014) MMO market report 2015 Unilever (2014) Annual Report and Accounts 2013 Jagiello Associates (2014) Case A: Unilever Jagiello Associates (2014) Case B: Unilever and Ice Cream
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