Section 1.Define the competitive advantage of the company and do a value chain analysis to understand where the company generates its value. Then do the strengths and weaknesses of the internal company.For a long time, video games have been a niche product, mostly played by teenagers and making up for only a small amount in the overall revenue of the media landscape. The medium has come a long way since then, even surpassing the movie industry in revenue in 2015. (Reitmeier, P. , 2016) As this industry keeps growing and as the E-Sports are considered very seriously, video game industry is getting attention more and more. This paper will discuss the case of Blizzard entertainment, the well-known video game developer and publisher, subsidiary of Activision Blizzard.The success of the Blizzard Entertainment is due to the success of their game series. Warcraft(1994) Diablo(1996), StarCraft(1998) and Overwatch(2016) are the game series that they have developed and are still successful in th updated by Blizzard Entertainment, and additional content “gets patched” continuously. This updating of the base product is facilitated by the continuous stream of revenue based on the monthly membership fee. Blizzard Entertainment’s membership strategy has achieved major success in the video game industry. (Brandt, T., & Bresser, R. K. 2012)The membership strategy has changed the value chain. They release and publish their game by online, so the manufacturing department gets reduced, logistic fees, warehouse fees are saved. It also made the pirate copying of the games incapable, which made the sales rise compared to the old CD packaged games. This strategy not only benefited the company but also it also benefited the players. In the past the CD packaged games were pretty expensive. They costed from $50 to $100, which was the reason for illegal piracy. Monthly payment of $15 was affordable for the people who wanted to try the game and if they were unsatisfied with the result, they can even an incident where an anonymous essay criticizing Electronic Arts(game publishing company) has unleashed but because the power of the publishing companies are so strong they treated this as a rumor, but there are many other evidence which indicates the cruel treatment of the game designers in the field. (Ed Frauenheim, 2004) This is another indicator of the low power of suppliers in the industry.Bargaining power of buyers : HighConsumers have the power and the choice to buy games from Blizzard Entertainment. Even though the relatively low price of the products, compared to other manufactured goods, consumers are very cautious when they buy games. The first reason is that there are so many other games to choose in the market. Even though differentiation is very high in the industry, most of the games share the similar genre. For example, in the case of Overwatch, which is a FPS (First Person Shooter) game that Blizzard published, it was leading the market until the games called ‘Pl13)The business strategy Blizzard Entertainment use is differentiation. As they are aiming to sustain their reputation as the leader in the global market their Business level strategies competitive scope is broad target. They are aiming the products not only to the heavy gamers but also for the light users all around the world to gain the market share. The competitive advantage they have is the uniqueness. The games they provide and the service they offer are different from other companies in this industry. As in their annual report one of their objective is to drive deep consumer engagement. There post management and the after service is so great that every consumer who has experienced the game from Blizzard Entertainment positively comments about it.The international entry mode Blizzard Entertainment used was to wholly-own subsidiary. They established their own subsidiaries such as Blizzard Korea, Blizzard Europe and etc in the market they aimed. In this way they could take care of tainment, we have to discuss about the mand who established the fundamental and founded the company. Before the Blizzard Entertainment was acquired by vivendi game, the company was led by 3 co-founders, Morhaime, Allen Adham and Frank Pearce. Out of these three, Morhaime was the president of the Blizzard Entertainment. When the company was first established, the name of the company was actually not Blizzard, it was Silicon & Synapse. The name came from the fundamental that created the computer, silicon, and the brain, synapse.Morhaime served on the Vivendi Games executive committee after the acquisition. The company itself is very focused on the particular industry, the gaming industry. In the past when the company was established, the gaming industry was nothing like that is today. The market size was small and the gamers were teenagers and the computer geeks. Nobody in that time thought about the gaming industry would be this big in the future. But the game Blizzard Entertainment deve
