Saparmurat

Khadzhimurzaev
Academic Supervisor: Prof.
Liam Ryan
Case Study
31 May
Moscow Touro University
Company overview
• Founded in 9th of July, 2008
• Activision Blizzard is a merger of two companies Activision and Blizzard
Entertainment
• One of the biggest video games company in the world
• Headquarters in Santa Monica, California
• Best known for Call of Duty, Overwatch, World of Warcraft, StarCraft,
Diablo series
• Biggest video game company by market cap of $61.14 billion
Company structure
• Bobby Kotick is a Director and Chief Executive Officer.
• Board consist of 11 Directors.
• Activision Blizzard is divided into three subsidiary companies: Activision, Blizzard
and King.
• Most of its shares hold by Robert A. Kotick, Daniel Alegre, Dennis Durkin, Vanguard
Group Inc., FMR LLC, and BlackRock Inc.
• Activision Blizzard has more than 9.500 employees.
Core Values
• “Respecting each other”
• “Protecting our company”
• “Maintaining our shareholder’s
trust”
• “Protecting our fans and
customers”
• “Working with our business
partners and communities”
• “How we act”
Mission and
Vision
“We create the most epic interactive gaming and
entertainment experiences on earth immersing
players in new, unimagined worlds. Our products
help build community and create social platforms
that bring people together. We are relentlessly
curious, pushing the boundaries of what is possible
to create games of our dreams—and yours. To put
it simply, our goal is to make every day more fun
with games such as Candy Crush™, Call of
Duty®, World of Warcraft®, Overwatch®,
Hearthstone® and Diablo®.”
PESTEL Analysis
• Video games regulations
• Video games market contribution to the economy
• COVID – 19, Esports, Expo
• 3D graphics, Cloud gaming, AR/VR
• Negative impact of video game industry on environment
• Piracy
SWOT Analysis
Strengths
• Multi-platform presence
• Diversified global market
• One of the esports leaders
• Large company with a big
portfolio of products and
services
Opportunities
• Growing mobiles game market
• Positive outlook on online gaming
market
• Leveraging on robust games market
Weaknesses
• Reliance on its key franchises (Call
of Duty, World of Warcraft,
Overwatch)
• High dependance on hardware
manufacturers (Example: Sony,
Microsoft)
Threats
• Intense competition
• Fast technological changes
• Piracy
Porter’s 5 Forces
Threat of new
entrants - High

Rivalry
Bargaining power among Bargaining power
of suppliers – Low existing of buyers - High
to moderate competitors -
High

Threats from
substitutes - Low
Global Presence
Activision Blizzard revenue by region

9000

1075 2797
8000

972 2680
1002 2618
7000

946 2464
964 2221

909 2239
6000
360 1990

452 1968

514 1741 2,409

394 1824 2,190
295 1743 2,409
263 1798 2,217

5000
227 1288 1,494

4000

4,434
3000

4,931
3,607

3,880

3,341
3,423
164

2000
2,405

2,436
555620

1000
0
07 0 08 0 09 010 0 11 0 12 0 14 0 15 0 16 0 17 0 18 0 19 0 20 0 21
20 2 2 2 2 2 2 2 2 2 2 2 2 2

Americas EMEA Asia Pacific

Financial Highlights
• Net revenue amounted to $8,803 billion for 2021 (8.87% increase from 2020)
• Operating income amounted to $3,259 billion for 2021 (19.20% increase from
2020)
• Net income amounted to $2,699 billion for 2021 (22.85% increase from 2020)

Net sales breakdown

6.492.31
2; 1;
74%26%

Product sales
In-game, subscription and othe revenues
Financial Ratios
Ratio 2021 2020
Current ratio 5.21 3.41
Quick Ratio 0.55 0.42
Profit margin 30.7% 27.2%
Return on equity 16.6% 15.8%
2021 & 2022 Highlights

• Sexual harassment scandal

• Microsoft acquisition of Activision Blizzard
Recommendations
• Create more accountable workplace
• Hiring creative talents
• Become less dependent on their franchises
• Metaverse
THANKS!
THANKS! THANKS! THANKS! THANKS! THANKS!
THANKS! THANKS!