World of
WarCraft
Group 2
Customer Segments
Professionals/
Networking
Hardcore Gamer
Young TechnologySavvy
International
Driven By Social
Aspect
Light/Casual User
Driven By
Entertainment
CUSTOMER ANALYSIS
Purchase Problems:
lack of steady income,
quickly move on to
next “hot” item.
Characteristics:
Very comfortable with
tech and virtual worlds,
primarily a way to “pass
the time”.
Growth Trends:
Was growing strong,
slight dip this year.
Benefits Sought:
Entertainment, escape
from day-to-day life.
Young Technology-Savvy;
Driven By Entertainment
Buying Behavior:
Largely peerinfluenced, affected
by other releases.
Purchase History:
Continued
subscription, returning
if interrupted.
Use Situation:
In free time, somewhat
heavy but continuous.
Size:
8 million worldwide.
Competition segments
Alternative
Entertainment
Game Systems
Computer Games
MMORPG's
Free MMORPG's
Internal
Competition
COMPETITION SEGMENTS
MMORPG’s
- Rift
- Aoin
- Entropia
- Guild Wars
- Star Wars: The Old Republic
Free MMORPG’s
- RuneScape
- Fiesta Online
- Second Life
- Evony
- Battlestar Galactica
Computer Games
- Dead Space 2
- Mass Effect 3
- Dragon Age 2
- Portal 2
- RAGE
Internal Competition
(Blizzard Entertainment Products)
Alternative Entertainment
- Movies/DVD
- Board Games
- Music/IPod/IPad
- Television
- Books/E-Reading
- Telephone/Smartphones
- Sports
Game Systems
- Nintendo Wii
- Sony Playstation 3
- Microsoft XBOX 360
- Nintendo DS
- Sony PSP Go
-
Diablo
StarCraft
Competition ANALYSIS
Position/Trends:
Innovation/MMO
market changes daily.
Positioning Strategy:
Innovative (Just
launched first high end
graphics F2P)
Unique Capabilities:
Several big name
investors.
Scope/Objectives:
Rift was created as an
“improvement of
existing MMO games”
Direct Competition:
RIFT (Trion Worlds)
Capabilities/Weaknesses:
-Strong Investors
-”Launched in Wow's
Shadow”
Target Markets:
Rift is our “love letter”
to the gamer who has
followed the natural
progression of MMO
gaming
Competitive Advantage:
One of the first
MMORPG with high end
graphics that ran across
several platforms.
Marketplace ANALYSIS
Actual/Potential Size:
MMOs have a higher
growth rate than music or
movies, with a potential
50% increase over the
next few years.
Growth Rate/Life Cycle:
There is a 25.4% annual
growth rate, Asia markets
continue to grow to more
than 70% of the industry.
Participants/Structure:
Thousands/millions of
players simultaneously.
Massive-Multiplayer
Online Games
Trends/
Success Factors:
Success comes from the
massive online worlds &
how players can interact
in this virtual world.
Cost/Profitability:
Historical Background:
Gained popularity in the
late 1980’s, the MMO
industry continued success
through the last two
decades.
Global revenues of
approximately $12.0
billion annually.
An online game in which a large number of people play the game and simultaneously interact in
a persistent world.
Environmental Trends
 Economic downturn
 Technology innovations- hardware
(graphics cards, processors, etc)
 Technology innovations- software
(development of new games, more
realistic virtual worlds)
 Gaming Industry Growth –20%
annually
 Aging of customers – ideal player
age 16-34
 Growth in social networking
 Increase in health focus on national
scale, fighting obesity, increasing
activity
 International conflict
 Mass Prediction Technology
 Cross Cultural Exposure
 Increase in Tolerant Market
 Increase in Security Concern
Environmental analysis
Immediacy
Low
High
•Increase Health Focus
•Increase in Tolerant Market
•Technology Innovations
Hardware
Software
•Growth in Social Networking
•Gaming Industry Growth
•Security Concern
•International Conflict
•Cross Cultural Exposure
•Mass Prediction Technology
•Economic Downturn
•Aging of Customers
High
Impact
Low
Blizzard Entertainment
A Division of Activision Blizzard Inc.
A. Financial Performance

2010 sales revenues: $1.6 billion (an increase of $460m from 2009)

Market Share: “The leader in terms of subscriber base and revenues generated in the subscription-based
MMORPG category. “
B. Other Performance Indicators

Quality: Dedicated to providing gamers with the greatest high quality entertainment experience

Service: around the world 24/7 game support to WOW players

Brand Loyalty: establish long-term relationships with gamers

New Product Activity: developing new content for all 3 of their franchises: WOW, StarCraft and Diablo; Working on an
unannounced project that will become their next generation MMORPG.
C. Determinants of Strategic Options and Choices

Strategy: “Maintain and Build upon Our Leadership Position in the MMORPG Category and PC Online Categories”

Strategic Problems:
 Possibility of new technologies that replace MMORPG games
 If consumer preferences trend away from MMORPG games
 If new business models emerge
Primary RESOURCES
IN PERSON WOW PLAYERS:
- Alec l
- Justin r
- Jason d
GAMERS IN GENERAL:
- Brett G (Roger’s Son)
- Veronica P
IN GAME WOW PLAYERS:
- Chopptopp
- Jimsbakk
- Morrowini
- Bromantana
RETAILERS:
- Gamestop Manager
(Store # 5149)
MMO PLAYERS:
- 2 co-workers of faith
(apple store)
- Players on rift/wow forums
Blizzard Entertainment:
- Public Relations (press kit)
- Rob Pardo (Executive vice
president of game design)
- Neal Hubbard (senior vice
president of marketing  still
waiting to hear back)
secondary RESOURCES
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http://us.battle.net/wow/en/
http://us.blizzard.com/en-us/
http://www.wowwiki.com/Portal:Main
http://www.wowhead.com/
http://investor.activision.com/releasedetail.cfm?Releas
eID=575495
http://wow.joystiq.com/2011/05/09/world-ofwarcraft-dips-to-a-mere-11-4-million-subscribers/
http://www.trionworlds.com/en/
http://www.riftgame.com/en/
http://files.shareholder.com/downloads/ACTI/139270
8319x0x461467/F432BA16-3D54-4EDB-92694F744E33B771/Activision_Blizzard_2010_ARS_Final_PDF.
pdf
http://na.leagueoflegends.com/board/showthread.php?
t=530190
http://www.mmo-champion.com/threads/829266-Worldof-warcraft-SUCKS-heres-why