Porter

1
Porters Five Forces Make a Splash with EA
and Activision!

• Group 3
• Jess Myers Sandy Chang
• Chris Corkery Steve
  Glichowski
• Mike Perdomo

2
The Overview

• The External Environment
• Intensity of Rivalry
• Barriers to Entry
• Bargaining Powers of Suppliers
• Bargaining Power of Customers
• Threat of Substitutes
• Wrap-it-up and Sweep it Away

3
Rivals
ELECTRONIC ARTS INC SMARTFORCE PLC ADR
MACROMEDIA INC PIXAR ATI TECHNOLOGIES INC
ADVANTAGE LEARNING SYSTM OPENTV CORPORATION CL
A THQ INC ACTIVISION INC
4
Barriers To Entry

• The Activision Annual Report
• The barriers to entry in our industry remain
  high.
• Why?
• Development Talent Is Hard To Find
• Connections to Suppliers Are Hard To Make
• Brands Are Taken

5
Bargaining Power of Suppliers

• Suppliers of Branding
• Formula One Racing
• MGM Interactive
• Universal Studios
• Suppliers of Platforms
• Playstation
• PC
• Suppliers of Parts

• Disney Interactive
• Marvel Comics
• Lucas Arts

• Sega Dreamcast
• Gameboy

6
Bargaining Power of Customers
GAMERS' LEVEL OF INTEREST, BY GENDER
Women Men
Casual 61 43
Interested 26 32 Avid
9 21 Fanatical
3 4 Source PC Data
7
Customer, Supplier, Or Partner?
Co-Branding and Joint Marketing wash away the
competition. Or do they?
8
Threat of Substitutes

• Playing Out-of-Doors
• Going to the Gym
• Paintball and Laser Tag
• Board Games, Dolls, Traditional Toys
• Total Consumer Media Down .6 whereas Video Game
  Use up 11.6

9
Wrap Up

• Difficult to Get In To Industry
• Fierce Competition
• Environment

10
Timeline - CAP
11
The End

• Thanks. Any Questions?