The following case involves financial analysis of Activision Blizzard, Inc. (“Activision” or “the Company”). Activision has its corporate headquarters in California, it is listed on the NASDAQ (ATVI), and it is a worldwide publisher of online, personal computer, video game console, handheld, mobile and tablet games. This case involves the analysis of Activision’s business strategy, accounting policy and financial performance.
Required:
address the following questions and post your responses with supporting documentation based on your evaluation of the Form 10-Ks for Activision for the five years ended December 31, 2018. Begin your analysis with the spreadsheet posted online containing the raw data associated with the financial statement information (file entitled “Discussion Case – FSA (Activision Data)”).
Industry Characteristics, Company Strategies :
Industry Characteristics
The first step in analyzing a Company is to understand the industry in which it operates and its position in that industry. One tool used to understand a Company’s industry is Porter’s Five Forces (see diagram picture attached).
Using Porter’s Five Forces, identify the key characteristics of the video game production industry.
Company Strategies
Identify key elements of Activision’s business strategy. Consider the characteristics of the industry analysis noted above and explain the Company’s plan for creating a competitive advantage.