Business communication: Vivendi

Résumé du document

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.

Extraits

[...] 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. The company has created, licensed and acquired a group of highly recognizable brands that it markets to a growing variety of consumer demographics. Its fiscal 2007 product portfolio included such best selling products as Call of Duty Guitar Hero II, Tony Hawk's Project Tony Hawk's Downhill Jam, Marvel: Ultimate Alliance, Over the Hedge, and X-Men: The Official Game. [...]

[...] 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. Concerning the synergies between the two actors, they have to appeal in a global scale and across the major platforms of gaming. The developer solution will be one of the main target to create synergies because they will be able to work together and develop more rapidly process, solution and of course games. [...]

[...] The strategy of these two giants is to be a global leader and they faced of competitors in doing this strategic alliance.Vivendi and Activision have to anticipate the new demand but as well the new offers from the emergent markets.Because it will be different and the objectiv is to adapt themselves to it.Moreover, the competition will be different with the new IT support and the face of this entertainment activity, Video Game, will be different and come from different distribution channel.The use of this video game will be through cell phones and in the nineties, Nokia demonstrate that will be possible with its little famous cellphone game “snake”.Nowadays with the iPhone from Apple, customers can entertainment hisself with an all-in-one apparatus, who can makes mp3 player, movie watcher, internet connecter and cell phone.Gaming will have a different face that Vivendi and Activision have to anticipate if they wanted to be the follower of the market and loose their place of global leader.But they choosed to be an actor and stay a global leader of this market, where they will be able to design the new face of the Video Games. Through this merger, they did the be develop themselves instead dying”. Table of contents of the Report 1. 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. [...]

[...] This industry currently does $33 billion of business a year, this will increase to $47 billion by 2009, a increase in just 2 years. Very few other industries are expanding at this rate. It is incredible that the Wii continues to be constrained by manufacturing capacity and sells second-hand at a premium. In a goal to increase the profits, the sales and their own turnover, company is have to develop and invest in this area of business where it still has a high potential of growth. [...]

[...] We are able to see that through the merger between Vivendi Games and Activision. The result of this transaction will be a giant of the video game and the provisional results will reach $18 billion. Both companies have the same core activities but the goal is to create synergies between them, reduce the cost, increase the market share and of course increase their sales. Today, the games industry market knows an impressive growth with the technologies the target is no more only the children but today a large part of this targets are adults. [...]