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World of WarCraft

World of WarCraft. Group 2. Customer Segments. CUSTOMER ANALYSIS. Purchase History : Continued subscription, returning if interrupted. Purchase Problems : lack of steady income, quickly move on to next “hot” item. Benefits Sought : Entertainment, escape from day-to-day life.

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World of WarCraft

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  1. World of WarCraft • Group 2

  2. Customer Segments

  3. CUSTOMER ANALYSIS Purchase History: Continued subscription, returning if interrupted. Purchase Problems: lack of steady income, quickly move on to next “hot” item. Benefits Sought: Entertainment, escape from day-to-day life. Characteristics: Very comfortable with tech and virtual worlds, primarily a way to “pass the time”. Use Situation: In free time, somewhat heavy but continuous. Young Technology-Savvy; Driven By Entertainment Buying Behavior: Largely peer-influenced, affected by other releases. Growth Trends: Was growing strong, slight dip this year. Size: 8 million worldwide.

  4. Competition segments

  5. COMPETITION SEGMENTS • Free MMORPG’s • RuneScape • Fiesta Online • Second Life • Evony • Battlestar Galactica • MMORPG’s • Rift • Aoin • Entropia • Guild Wars • Star Wars: The Old Republic Direct Competition • Internal Competition • (Blizzard Entertainment Products) • Diablo • StarCraft • Computer Games • Dead Space 2 • Mass Effect 3 • Dragon Age 2 • Portal 2 • RAGE Less Direct Competition • 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 Substitutes

  6. Competition ANALYSIS Capabilities/Weaknesses: -Strong Investors -”Launched in Wow's Shadow” Position/Trends: Innovation/MMO market changes daily. Scope/Objectives: Rift was created as an “improvement of existing MMO games” Positioning Strategy: Innovative (Just launched first high end graphics F2P) Target Markets: Rift is our “love letter” to the gamer who has followed the natural progression of MMO gaming Direct Competition: RIFT (Trion Worlds) Unique Capabilities: Several big name investors. Competitive Advantage: One of the first MMORPG with high end graphics that ran across several platforms.

  7. Marketplace ANALYSIS Growth Rate/Life Cycle: There is a 25.4% annual growth rate, Asia markets continue to grow to more than 70% of the industry. Actual/Potential Size: MMOs have a higher growth rate than music or movies, with a potential 50% increase over the next few years. 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: Global revenues of approximately $12.0 billion annually. Historical Background: Gained popularity in the late 1980’s, the MMO industry continued success through the last two decades. • An online game in which a large number of people play the game and simultaneously interact in a persistent world.

  8. 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

  9. Environmental analysis Immediacy Low High High Impact Low

  10. Blizzard Entertainment ADivision 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

  11. RESOURCES • 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?ReleaseID=575495 • http://wow.joystiq.com/2011/05/09/world-of-warcraft-dips-to-a-mere-11-4-million-subscribers/ • http://www.trionworlds.com/en/ • http://www.riftgame.com/en/ • http://files.shareholder.com/downloads/ACTI/1392708319x0x461467/F432BA16-3D54-4EDB-9269-4F744E33B771/Activision_Blizzard_2010_ARS_Final_PDF.pdf

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