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Activision Blizzard, Inc. (SWOT Analysis) - December 2012

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“SWOT is an acronym for the internal Strengths and Weaknesses of a firm and the environmental Opportunities and Threats facing that firm. SWOT analysis is a widely used technique through which managers create a quick overview of a company’s strategic situation. The technique is based on the assumption that an effective strategy derives from a sound “fit” between a firm’s internal resources (strengths and weaknesses) and its external situation (opportunities and threats). A good fit maximizes a firm’s strengths and opportunities and minimizes its weaknesses and threats. Accurately applied, this simple assumption has powerful implications for the design of a successful strategy.”

Activision Blizzard, Inc.

Activision Blizzard, Inc. (Activision Blizzard or "the company") is a worldwide publisher of online, personal computer (PC), console, handheld, and mobile interactive entertainment products. The company has operations in North America, Europe and Asia. Activision Blizzard is headquartered in Santa Monica, California and employed about 7,300 people as of December 31, 2011.

Strengths, Weaknesses, Opportunities and Threats (SWOT)

Location of Factor

TYPE OF FACTOR

Favorable

Unfavorable

Internal

Strengths

  • Large company with successful franchise history
  • Multiple platforms and international presence expands the market
  • Improved profitability and a healthy balance sheet

Weaknesses

  • High dependence on few titles
  • Dependence on console manufacturers for the success of company’s products

External

Opportunities

  • Positive outlook for online gaming market
  • Growing mobile gaming industry

Threats

  • Intense competition
  • Software piracy
  • Short products lifecycle
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