Vivendi-Blizzard Case Study: a Situation Analysis Paper Outline
SCHOOL OF BUSINESS ADMINISTRATION STRATEGIC MANAGEMENT
VIVENDI-BLIZZARD CASE STUDY: A SITUATION ANALYSIS PAPER OUTLINE
Instructor: Professor Clarisse Molad, PhD
Student: Ilija Kuzmanovski
Skopje, December 2012
CONTENTS
1. 2. 3. 4. ABSTRACT ............................................................................................................................ 2 INTRODUCTION ................................................................................................................... 3 COMPANY OVERVIEW .......................................................................................................4 EXTERNAL ENVIRONMENT VIVENDI/ACTIVISION BLIZZARD: MACROECONOMIC CONDITIONS AND PORTER’S 5 FORCES ...................................5 5. INTERNAL ENVIRONMENT VIVEDNI/ACTIVISION BLIZZARD: RESOURCES AND CAPABILITIES AND VRIO ANALYSIS .............................................................................8 7. 8. 9. SWOT ANALYSIS VIVENDI/ACTIVISION BLIZZARD ................................................. 10 CONCLUSION: WHAT DOES THE FUTURE HOLDS .................................................... 17 REFERENCES ...................................................................................................................... 19
1
1. ABSTRACT
The paper analyse French international company Vivendi and its subsidiary Activision Blizzard. This company has $15 billion US debt which decreases bond credit ranking and it is an obstacle for rising of the stock share price. Vivendi is on the crossroad to change the strategy in order to find solution for these problems. There is a suggestion to sell Activision Blizzard and reduce the debt. In this paper I have made external and internal analysis of Vivendi (SWOT, PASTLE, Porters Five forces and VRIO). The results are opposite of the suggestion of selling Activision Blizzard. Actually the industry will grow in next 3 years with 15,3 % and the interactive entertainment industry revenues
VIVENDI-BLIZZARD CASE STUDY: A SITUATION ANALYSIS PAPER OUTLINE
Instructor: Professor Clarisse Molad, PhD
Student: Ilija Kuzmanovski
Skopje, December 2012
CONTENTS
1. 2. 3. 4. ABSTRACT ............................................................................................................................ 2 INTRODUCTION ................................................................................................................... 3 COMPANY OVERVIEW .......................................................................................................4 EXTERNAL ENVIRONMENT VIVENDI/ACTIVISION BLIZZARD: MACROECONOMIC CONDITIONS AND PORTER’S 5 FORCES ...................................5 5. INTERNAL ENVIRONMENT VIVEDNI/ACTIVISION BLIZZARD: RESOURCES AND CAPABILITIES AND VRIO ANALYSIS .............................................................................8 7. 8. 9. SWOT ANALYSIS VIVENDI/ACTIVISION BLIZZARD ................................................. 10 CONCLUSION: WHAT DOES THE FUTURE HOLDS .................................................... 17 REFERENCES ...................................................................................................................... 19
1
1. ABSTRACT
The paper analyse French international company Vivendi and its subsidiary Activision Blizzard. This company has $15 billion US debt which decreases bond credit ranking and it is an obstacle for rising of the stock share price. Vivendi is on the crossroad to change the strategy in order to find solution for these problems. There is a suggestion to sell Activision Blizzard and reduce the debt. In this paper I have made external and internal analysis of Vivendi (SWOT, PASTLE, Porters Five forces and VRIO). The results are opposite of the suggestion of selling Activision Blizzard. Actually the industry will grow in next 3 years with 15,3 % and the interactive entertainment industry revenues
References: Barney J., Hesterly W., (2008), Strategic Management and competitive Advantage, 2nd Edition, Pearson Prentice Hall, New Jersey, USA Bloomberg (2012) Vivendi Buys Time With Cost Cuts as Strategy Calls Loom, [online] Bloomberg L.P, Available at: http://www.bloomberg.com/news/2012-11-13/vivendi-raises-full-year-forecastafter-profit-beats-estimates.html, [Accessed 14 December 2012] Capcom (2012), Market Strategy, [online] Capcom, Available at: http://www.capcom.co.jp/ir/english/data/oar/growth/market.html, [Accessed 13 December 2012] MAVISE (2012), TV Market in France, [online] MAVISE, Available at: http://mavise.obs.coe.int/country?id=1, [Accessed 14 December 2012] Teleco (2011), Teleco Update Market, [online] Teleco, Available at: http://www.teleco.com.br/en/en_comentario/en_com421.asp, [Accessed 14 December 2012] Thompson, Jr., A.A, Strickland III, A.J. & Gamble, J.E., (2007), Crafting and Executing Strategy: The Quest for Competitive Advantage: Concept and Cases, 15th edition, McGraw-Hill International Edition Trading Economies (2012), France GDP growth, [online] TA, Available at: http://www.tradingeconomics.com/france/gdp-growth, [Accessed 13 December 2012] US SEC (2012), Annual report for 2011, Form 10-K, [online] US SEC, Available at: http://investor.activision.com/secfiling.cfm?filingID=1047469-12-1775&CIK=718877, [Accessed 14 December 2012] Vivendi (2012), First half 2012 results, [online] Vivendi, Available at: http://www.vivendi.com/wp-content/uploads/2012/09/20120830_Prez_1H2012_EN.pdf, [Accessed 13 December 2012] Vivendi (2012), Financial Report and Unaudited Condensed Financial Statements for the First Quarter Ended March 31, 20 12, [online] Vivendi, Available at: http://quicktake.morningstar.com/stocknet/bonds.aspx?symbol=vivhy,[Accessed 13 December 2012] Wireless Intelligence (2012), Market analysis, [online] GSMA, Available at: https://wirelessintelligence.com/markets/1038/data/?report=50699ff16260a, [Accessed 14 December 2012] WorldBank (2012), Data, [Online], World Bank, Available at: http://data.worldbank.org/indicator/NY.GDP.PCAP.CD, [Accessed 14 December 2012] 19