Market Position
Meaning and Purpose
Market position shows a firm its performance in comparison to its competitors, reflecting on its market share and what it specialises in. This helps firms to develop new business strategies with regards to how to gain more market share and out perform competitors, thus increasing profits.
This graph below shows the increase in AB's share price, after the release of the CoD series this grew exponentially larger.
Market position shows the managers of Activision Blizzard the performance of the business in comparison to it's competitors, mostly with regards to financial performance. The advantage of this is that it allows then to gain perspective on what they are doing right and wrong in their operation, allowing them to make adjustments to projects or policies that could be causing issues, thus being able to remove any error while also adapting to the market and their competition. This allows AB to plan the release of new titles and helps them manage stocks and investment protecting share holders.
The information below is from AB's 2014 annual report and illustrates to shareholders how well AB have grown financially.
Activision Blizzard has dominated the FPS domain for the last 5 years, primarily driven by the Call of Duty franchise. Activision went into the holiday period with two new and highly awaited titles: Call of Duty: Advanced Warfare and Destiny. Call of Duty: Advanced Warfare sold nearly 7.2 million units on all the major platforms in the first week of its release. As of January 3, the title has sold approximately 17.6 million units, leading in the FPS genre.
Already a dominant force in the FPS genre, Activision aims at strengthening its hold over the segment, as Electronic Arts is rapidly climbing up the ladders in this segment with its Titanfall & Battlefield franchises stealing market share from Activision’s Call of Duty.
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