Vivendi is a worldwide company with a large portfolio of products and services. The company is divided into business units like environment and of course the core activity that we will interest us: the Video Games industry. The market knows an important growth with emerging markets like India and China, the demand is exposing and the impact on the growth of the sector is really interesting for investor and future shareholders. But the sector knows an increase of the competitors in the same time. So Vivendi Games decides to merge with Activision. They are both global leaders in their market, for Vivendi is the video games and Activision the online video games. Two different positioning but they have same core competencies. So this merger will create results of $18 billion, stocks were selling. This merger will create synergies, reduces cost, use of licenses and reach new customers and new markets.
[...] In the same time, companies have to invest in a different scale as a start of business because they create synergies. That means the sales is increasing, the investment is reducing and of course the profit margin is increasing as well. So IT companies like Vivendi or Activision in this case, are able to generate large income and large profits. In a shareholders prospective, the earn per share is more and more interesting because the growth is strong, but in this area of business these companies have to upgrade and update their software but less than 5 years ago. [...]
[...] The interests in this transaction are huge and the goal is to develop their own business in order to reach the market of the other company. That means, Vivendi is trying to reach the US market and Activision to reach the European market, to increase their sales and turnover. 3.Why and how Vivendi should invest in Activision ? The Activision Brand Activision, Inc. is a leading international publisher of interactive entertainment software products. The company has built a diverse portfolio of products that span a wide range of categories and target markets and that is used on a variety of game hardware platforms and operating systems. [...]
[...] Executive summary 2.Introduction 3.Why Vivendi should investing in Activision The Activision Brand Activision : its mission statement 4. Market Analysis 5. Marketing strategy 5.1 Marketing strategy from Vivendi Marketing strategy from Activision 5.3 .Goals of this alliance 6. Conclusion and Recommendations 7. References 1. Executive summary Vivendi is a company with a large portfolio of products and services. In this case, they have subsidiaries like Vivendi environment, Vivendi Communication and of course the unit that we are going to study, Vivendi Games. [...]
[...] That is why they agreed to merge with Vivendi Game Goals of this alliance In the Vivendi point of view, the merger with Activision has for objectives to be the leader on the online and PC franchises and improve their sales. For Vivendi, the transaction is very interesting because Activision has a global and diverse portfolio of interactive entertainment assets through the licenses needed to create new games and use the image to do it for example. Then the Strong presence in every key existing and emerging category of games and the company is well positioned for growth and margin expansion. [...]
[...] Concerning the strategies or in others terms, what are be the drivers of the transaction? They will drive growth of recurring franchises and apply a decentralized studio model focused on quality and operating income. In the same time, they will focus on largest markets/largest customers and develop different area of product and discipline. They plan to add new online revenue streams by a diversification of the offers and in order to do that they have to strengthen customer loyalty. The implementation of a process of customer's fidelization is very important to build a strong base in this merger. [...]
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