...interesting to know that “console games software sales represented 82.6% of the market’s overall value. In comparison, the sales of personal computing games represented 17.4% of the market’s aggregate revenues”. In this way, development of new hardware sales usually drive the demand for development of high performance gaming software, as illustrated below9. As depicted previously, the future market value of this industry in the United States is expected to grow by 5% for the next five years, and total market value of $10.3 billion by the end of 201110. In comparison, the Asian market, UK market, and the French market are expected to grow with CAGRS of 15%, 8.9%, and 2.4% over the same five year period11. 2.2 Competitor Analysis The interactive gaming industry is comprised of 86 competitors as of 200812, with more consolidations of companies likely in the future due to the increased threats faced by piracy, increased competitive factors, riskiness due to...
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...Acting On a Strategic Vision Name Institution Case Questions 1. SWOT analysis SWOT analysis is a business tool that helps a corporation of any size to assess its viability. The tool helps to identify major pros and cons in the industry of choice. The SWOT analysis assesses strengths, weaknesses, opportunities and weaknesses for the business. The tool is a great tactic that can be used to identify the state of a market or industry at any point in time. For this case, the company that is given consideration is Electronic Arts. The company was established in 1982 under the operating name Amazin’ software. The company changed the name to Electronic Arts and continued to develop games and sell games. In the decade between 1980 and 1990 the company enjoyed major success in the gaming industry. At the end of 1989, the company had become a publicly traded company. The revenues of the company increased from an average one hundred and thirteen million dollars to two hundred and ninety eight million dollars within two years from 1991. The success continued until 2006, when they were knocked off the number one spot by a rival named Activision. The SWOT analysis is a tool that could have been used to help Electronic Arts to strengthen their position in the gaming industry. The application of the SWOT tool would have analyzed the market trend, the competition, the internal structure of the company, weaknesses of the company, the innovative opportunities available, and also identify the...
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...PURPOSE Recently, Activision Blizzard, Inc. successfully purchased shares from its parent conglomerate, Vivendi, in order to gain more control as a subsidiary. The reasons for the split will be examined in this report, as well as the current shareholders’ reaction to these significant changes. In addition, there will be an analysis of the negative effects for Activision Blizzard, Inc. that results from the deal between the two companies. The report will then discuss the main issue of the low amount of cash on hand. The final stages of the report will provide strategic recommendations for a plan of action to help the company overcome this obstacle, while remaining the top developer and publisher in the interactive gaming industry. There are several goals that the report hopes to accomplish. First, it will provide insight into a company that dominates the entertainment software industry. Second, the study will illustrate the drastic change in a company’s cash on hand after the purchase of shares. Third, it will propose new ways for the company to continue its momentum and match its past success. Finally, the goal of the report is to establish Activision Blizzard, Inc. as a company that has broken free from its parent conglomerate. PROBLEM STATEMENT The Deal The announcement that Activision Blizzard, Inc. and Vivendi would engage in a deal that would make Activision Blizzard, Inc. majority shareholder left the minority shareholders in the dust. As of June 30, 2013...
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...Team 1 Company Analysis 1 Jackson Berry, Will Berman, Amanda Curtis, Jenny Zhang Professor Belz Case Studies in Innovation March 3, 2016 NintenDON’T Nintendo captured many hearts and households in the late 1980s, and its legacy lives on through the games that made it the bestselling console of its time. Revolutionizing the world of video games, Nintendo survived the burst of the video game bubble through its storytelling across multiple game console platforms. Their products were conceived at the intersections of inexpensive hardware and unique, beloved storytelling in their games; this combination made their console a household staple. In an era of heartthrobs and fads, Nintendo rose above and surpassed a simple level of trendiness. The company defined gaming innovation: “to play Nintendo” became synonymous with video gaming. 1983 saw the first recession in the video game industry in the form of the “Atari Shock,” after the market became too populated with so many different games and consoles. This caused an oversaturation of the console industry, which was already competing heavily with home computer games. Thus, the “Atari Shock” was a flooding of a market in which no player had a majority share, and the excess of thirdparty games resulted in decreased shelf space and decreased sales. People started believing video games were a fad, and amidst the chaos, the Nintendo Entertainment System (NES) was born. Nintendo made purposeful branding decisions ...
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...Company: Activision Blizzard, INC. (ATVI) PESTLE 1. Political Pg. 10 – Our products are sold internationally on a direct-to-retail basis, through third-party distribution and licensing arrangements, and through our wholly-owned European distribution subsidiaries. We conduct our international publishing activities through offices in the United Kingdom ("U.K."), Germany, France, Italy, Spain, Norway, the Netherlands, Sweden, Australia and Ireland. • Activision Blizzard Inc. is an internationally traded company and most of its revenue is generated from foreign trade. Therefore it is subject to various foreign and domestic laws. Fluctuations in these laws such as increased tariffs, duties, transportation costs and instabilities in the currency exchange rates can adversely impact company’s operations in the foreign market. 2. Economic Pg. 13 – Our products involve discretionary spending on the part of consumers. Consumers are generally more willing to make discretionary purchases, including purchases of products like ours, during periods in which favorable economic conditions prevail. • Consumers purchasing trends have a direct relationship with economic condition. Therefore, current economic condition and global recession is likely to reduce consumer spending on the products which can have a negative impact on company’s operations and financial position. 3. Socio-cultural Pg. 10 –We often seek to maximize our worldwide revenues and profits by releasing high-quality...
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...teenagers, and adults in their 20’s and 30’s. The key issue facing Infogrames is whether name branding is a source of sustainable competitive advantage. Conclusion and Recommendations Infogrames’ implementation of a name branding strategy will not be successful for two reasons. First, the following analysis reveals that there are three key success factors for software companies participating in this industry. Infogrames’ acquisition of Hasbro does not help them to better meet any of these three objectives. Second, Infrogames has rationalized the acquisition of Hasbro based on the name branding strategy using the Atari moniker. The analysis, however, reveals that there is no competitive advantage gained on the software side of this industry for name branding. In short, consumers do not appear to make their game purchases with any regard whatsoever for the company that produced the game. As such, the acquisition of Hasbro, and the name branding strategy, will be a failure for ISEA because neither the acquisition nor the branding strategy contributes to the key success factors identified for this industry or to achieving a sustainable competitive advantage. Analysis External Environmental Conditions (General Industry): The gaming industry is growing, but it is consolidated, which produces a high level of competition between companies fighting for market share....
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...Given the increasing use of cross-functional teams in corporate product creation, you may have the opportunity to be a part of this critical process regardless of your planned functional focus. This course will draw upon the recently published book “Strategic Product Creation” (McGraw-Hill, December 2006) coauthored by the course professor. The book takes an executive view of managing corporate product development drawing upon the experiences of global organizations such as Disney Imagineering, Procter & Gamble, Mars Incorporated, Whirlpool Corporation, United Technologies, and IBM. The course will be largely case-based covering a range of industries from software development (Activision) to automotive (GM) but also include some hands on exercises and a group simulation. This course offers a general management view of product creation by exploring frameworks and case examples from a wide range of industries. It should serve students well who seek a career in a corporate environment or as a consultant serving large corporations. Broadly, the course will examine the key processes in corporate product creation including: Product Creation Leadership Product Idea Generation Technology Capabilities Product Creation Process Design The Competitive Product Portfolio People and Project Management Innovation Partnerships In addition to exploring the general processes of corporate product creation, students will conduct research supported by executive interviews to...
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...Electronic Arts Case Group D Monday and Wednesday 11:00-12:15 Anthony Allen, Laura Blakeman, Daniel DeMaiolo, Carla Hill, and Mason Shattuck Industry Analysis: Dominant Economic Features Definition of Software Publishers Industry According to the United States Census Bureau, Electronic Arts would fall under the Software Publishers Industry (NAICS code 511210, SIC 7372). The definition of this industry is as follows in the North American Industry Classification System: “This industry comprises establishments primarily engaged in computer software publishing or publishing and reproduction. Establishments in this industry carry out operations necessary for producing and distributing computer software, such as designing, providing documentation, assisting in installation, and providing support services to software purchasers. These establishments may design, develop, and publish, or publish only” (United States Census Bureau, Software Publishers Definition). Electronic Arts (EA) does, in fact, make up one of the world’s largest independent developers, publishers, and marketers of video games. Market Size, Growth Rate, and Industry Life Cycle According to research provided by Thompson, author of the EA case, in 2005, the video game industry made up a $35 billion global market (Thompson 2007). In 2005, the United States alone made up $7 billion in sales out of the $35 billion. The United States also had 228.5 million unit sales which included video games played on...
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...Electronic Arts Case Group D Monday and Wednesday 11:00-12:15 Anthony Allen, Laura Blakeman, Daniel DeMaiolo, Carla Hill, and Mason Shattuck Industry Analysis: Dominant Economic Features Definition of Software Publishers Industry According to the United States Census Bureau, Electronic Arts would fall under the Software Publishers Industry (NAICS code 511210, SIC 7372). The definition of this industry is as follows in the North American Industry Classification System: “This industry comprises establishments primarily engaged in computer software publishing or publishing and reproduction. Establishments in this industry carry out operations necessary for producing and distributing computer software, such as designing, providing documentation, assisting in installation, and providing support services to software purchasers. These establishments may design, develop, and publish, or publish only” (United States Census Bureau, Software Publishers Definition). Electronic Arts (EA) does, in fact, make up one of the world’s largest independent developers, publishers, and marketers of video games. Market Size, Growth Rate, and Industry Life Cycle According to research provided by Thompson, author of the EA case, in 2005, the video game industry made up a $35 billion global market (Thompson 2007). In 2005, the United States alone made up $7 billion in sales out of the $35 billion. The United States also had 228.5 million unit sales which included video games played on...
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...Upon immediate release of the Wii one quickly realised that once again Nintendo had revolutionized the video game industry. In a way that only Nintendo knows how they have managed to separate themselves from competitors and set out to create new markets. Their latest product is loved by consumers for the experience, price point and unique Nintendo content that it offers. The Wii experience offers something not seen before in the industry. The immersive, motion-sensor gameplay makes the Wii unique. The product differentiation Nintendo chose has resulted from the target market Nintendo focused on. It identified and targeted groups of people who had no interest in video games. Before long the product was popular in nursing homes and kindergartens, demographics that no company in the industry once catered for. The unique experience not only “battled the difference between the indifference of people who have no interest in video games” and succeeded, it also proved attractive to innovators and early adopters. This strategy has been identified by the Journal of advertising research as a key component to rapid market penetration and high profits . As suggested by the article energy policy late majority and laggards are categories of innovation that lack willingness to adopt new products. The article proves that to reach these groups the innovators and early adopters must first embrace the product and that the late majority and laggards can’t be financially burdened by their...
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...Journal of Economic Geography Advance Access published June 22, 2005 Journal of Economic Geography (2005) Page 1 of 30 doi:10.1093/jeg/lbi001 Video games production networks: value capture, power relations and embeddedness Jennifer Johns* Abstract This paper has two main aims. Firstly to conceptualize the production networks of the video games industry through an examination of its evolution into a multi-million dollar industry. Secondly, to use the video games industry to demonstrate the utility of Global Production Network approaches to understanding the geographically uneven impacts of globalization processes. In particular, three key notions of value, power and embeddedness are used to reveal the most powerful actors in the production network, how they maintain and exercise their power, and how the organization of production is manipulated as a result. It is argued that while hardware production is organized by console manufacturers using truly global sourcing strategies, the production of software is far more complex. In fact, software production networks are bounded within three major economic regions: Western Europe, North America and Asia Pacific. This paper seeks to explain how and why this has occurred. Keywords: video games, global production networks, value, power, embeddedness JEL classifications: L14, L23, L82 Date submitted: 4 October 2004 Date accepted: 12 April 2005 1. Introduction The video games industry1 was born during the early 1960s and has rapidly...
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...Matthew Tango Course Project Part 2 Task 4 1. The project’s IRR is going to be 22%. The way to figure it out is going to be on the excel spreadsheet that is attached to this project 2. To calculate the NPV you are going to use the formula NPV=(1,100,000/1.15)+(1,450,000/1.15)^2+(1,300,000/1.15)^3+ (950,000/1.15)^4-3,000,000=$450,866.74. Attached is the excel spreadsheet that shows the work. 3. Based on what the NPV is for this project the company should definitely consider accepting this project because the NPV is greater than 0. Anytime the NPV is greater than 0 it means it will make the company money so therefore the company should be accepting the project. 4. Well first to answer the question you have to know what depreciation is a non-cash expense that reduces the value of an asset over time. So now knowing that, depreciation is not considered a cash flow but it does generally reduces a company’s tax liability. Anytime you reduce a company’s tax liability it will cause an increase to the present value of the project. 5. So first thing we need to do is explain what each one of these means and then we can relate them to the project. * Sunk Cost: Sunk costs are cost to the company that have already been incurred and cannot be recovered by any means. In this example Air Jet hired a group to come in and evaluate the feasibility and the utility of acquiring a new machine for them to use. Even if the company does not get the machine the money...
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...As of December 3, 2014, our portfolio ranked #3 overall with $103,639.82 3.64% in return with only 5 trade. You might think we are lazy to put effort into the stock simulator. This is not true because we had a strategy behind our action. Most teams pick stock with fundamental analysis (P/E or debt-to-equity ratio etc.) buying lots of different company stock and diversify the risk of losing money. But this is not the case for our team, we pick stock based on our personal interest. For example, some people like using Windows computer while others prefer Mac computer. As you can see, we made a lot of money on EA (23.96% return as of December 3, 2014) we were both interested in the entertainment industry and we decide to go with it. (I ensure you we are not a huge gamer!) I believe buying stock is like choosing something you interested or familiar with. Otherwise, you are gambling your money because you are buying something you have limited knowledge and not familiar with the industry. Before our first trade, I first defined our objective. Instead of making the most return, “Don’t lose money” is our #1 rule because we are winning as long as we don’t lose money. For this reason, we only buy stock that we believe it will growth within the 3 months period. KMB is our first stock that we bought. We bought it at $105.83 and is now selling $114.7. I like KMB long time ago because its steady growth trend had lasted for the past 3 years. The reason why KMB can growth steadily is because...
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...10-K integration Project Take- Two Interactive Software, Inc. 10-K report date: 5/23/2012 10-K Report Link: http://secfilings.nasdaq.com/edgar_conv_html%2f2012%2f05%2f23%2f0001047469-12-006226.html#FIS_BUSINESS Article: Fff PESTLE Forces: 1. Political- Page 17- many foreign countries, particularly in those with developing economies, it may be common to engage in business practices that are prohibited by United States laws and regulations, such as the Foreign Corrupt Practices Act, and by local laws, such as laws prohibiting corrupt payments to government officials. Although we implement policies and procedures designed to ensure compliance with these laws, there can be no assurance that all of our employees, contractors and agents, as well as those companies to which we outsource certain of our business operations, including those based in or from countries where practices which violate such laws may be customary, will not take actions in violation of our policies. Any such violation, even if prohibited by our policies, could have a material adverse effect on our business. Because of the growing international operations of Take-Two the risks of not complying to foreign laws and regulations could result in increased costs and decreased sales. Take-Two has policies and procedures that follow laws like the Foreign Corrupt Practices Act. But there is no guarantee that all employees or involved parties will follow these laws and regulations. 2. Economic- Page...
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...member of a team of managers wanting to know how to go about introducing a new product. The paper will discuss if it is better to use a late-mover theory or a first-mover theory through the use of positives and negatives of each which will be supported by examples of sixteen companies. Finally, a decision will be made as to which style should be used and why. Introduction Within this paper the late mover theory and the first mover theory will be defined. Once they are both defined each one will be shown to have advantages as well as disadvantages. All of these advantages and disadvantages will be supported with real life situations and businesses that have used both for the positive as well as the negative. This analysis is being done because the head company wants to know which theory to go with in terms of releasing its new product. Unfortunately, the product is unknown as well as many other facets of the company. The benefit to that is the decision can be made with an unbiased approach and only the facts will hold true within this report. Advantages & Disadvantages of the Theories The “First-mover” theory and the “Late-mover” theory are both ways of attacking the global marketplace with regard to product placement as well as the best time to strike. Many corporations in the world will come up with similar or even identical ideas at the same time. The difference is whether to try and be the first to put it on the market or wait and see how the...
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