MANAGERIAL COMMUNICATION

CASE STUDY

BLIZZARD ENTERTAINMENT INC.: POLITICS IN ESPORTS

Submitted By:

Aman Kumar

21PGDM006
1. Situational Analysis

• E-Sport industry is growing with lucrative prize system, sponsorships, endorsement and

live streaming broadcasts on the internet and television.

• Hearthstone is one of the biggest gaming competitions involving almost all of the world

with all eyes watching it and take participates from all over the world.

• Blitzchung as from Asia-pacific region uses this platform and his fame as the winner of

one of the most popular gaming events tries to protest by presenting a symbolic protest

gesture in support of Hong Kong which is positively received globally and praised.

• Tencent Holdings ltd. is a Chinese MNC owns a major stock of 5% in Activision

Blizzard Inc. which is the parent company of Blizzard. This gives a major overriding and

manipulating power to Tencent and in return to the Chinese government over the

narrative from Blizzard Inc side.

• The ‘Blizcon’ event and a new game ‘Overwatch’ has to be launch on October 2019, the

controversy around Blitzchung erupted which led to a massive fall out in the international

market, a drop in share prices, backlash in America as well as major stakeholder worries.

• The Global e-sports market which is projected to reach $1.79billion by 2022, is highly

competitive, any setback will cost the company losses in coming years moreover their

advantage in the industry. The main source of revenue which is Advertisement and

sponsorship would be gone.

which makes it all the more difficult to take any stand further no stand all will cost even

more because the damage is already done.

• Company’s core values, morals, and employee’s trust in their organization are all at stake

here accompanied by their players and audience retention.

• Not only has Blizzard taken a hit but its parent company ‘Activision’ and its other

subsidiaries also now fall in the collateral damage zone.

2. Problem Analysis

Short term problems -

• Blizzard was facing backlash from gaming community on all social media channels.

• In October 2018 when Brack became president, he said his values were “naturally aligned

with the company’s core.” and also commented “hunger for action’’. Rather they should

have been aligned to address players sentiments in the controversy.

• All stakeholders started questioning regarding reduced gaming individuals and share

prices and are deciding to pullout there shareholding from blizzard and Activision Inc.

• The employees of Blizzard questioned the act and asked their core values of “think

globally’’ and “every voice matters” put out by the company.

• Blizcon was facing issues regarding brand endorsements and sponsorships who did not

want to be associated with Blizzard activities.

• Blizzard has to be take care of its present reputation and number of players because of

backlash and reduced shareholding pattern.

Long term problems –

• Blizzard was facing criticism from angry players that they were biased to China as well

some players wanted Blizzards relation to be strained with China.

• Activision was getting affected due to Blizzards backlash and there profits is also getting

affected.

• The Shareholders and lost confidence in the company because of negative publicity and

people disassociating themselves with the gaming corporation.

3. Decision Analysis

1. Blizzard president Brack Should appear in press conference and made a statement to slow

down backlash:

Pros: Image of blizzard might improve and backlash might be slowed down. Blitzchung might

be back in gaming for Blizzard

Cons: Brack’s image will be at stake and there will be a possibility of getting affected of

shareholding pattern.

2. Blizzard should issue a statement at all social media channels that they are no biased and

continue their original policies:

they are not biased and following original policies.

Cons: Activision Inc might get affect by the profit and shareholding pattern due to statement

because people might get wrongly interpretation.

3. Blizzard Inc should stick to their 8 core values and mean them like “every voice matters” and

also they have to frame some new policies:

Pros: New policies will be taken care of and their core values that declares “every voice matters”

and by this company might get some reputation.

Cons: Players may use the new formed policies to cater their propaganda and may get loopholes.

4. Blizzard should approach the situation with a cautious note and reduce the ban duration and

put up an unconditional apology statement

Pros: It will clear the companies stand to be neutral to every participant, reputation will be

healed, stake holder retention will be solved

Cons: Apology might helps them find new loopholes of their organizational policies.

5. Blizzard can arrange an open house conversation with the employees to discuss the next

course of action in such controversial situations.

Pros: Employee resentment will be reduced by making them feel wanted in the company,

company is sticking to their core value “every voice matter”.

Cons: The decision-making duration of the company will increase, employees might take

unnecessary advantage of this newly found say in decisions.

1). Crisis Communication model

Make redressal committee

Apologize to blitzchung

Press Statement
by brack

Feedback and
reconnaissance

STEP 1: Make redressal committee to take cognizance of the extent of damage.

STEP 2: Brack on behalf of Blizzard Inc. must apologize to blitzchung.

lucrative prize to him.

STEP 4: Feedback and Reconnaissance on the impact of the Damage Control Steps.

2). Employee feedback model

organizational policies and their feedback is utmost important.

5. Learnings

• Corporation should weigh the consequences of their actions based on the political
situation of the globe so that it doesn’t affect their brand and revenue.

• Mobilization of future product launch and events aggressively through a positive

approach in order to recapitulate lost market.

• Any bad decision can affect shareholding pattern a lot and also confidence can be lost of

investors.

6. Key Takeaways

• Assessment of crises must bring changes in policies to avoid future problems of similar

nature.

• Problems that are sensitive in nature must be handled separately with utmost responsibility

• Before taking any decisions consider the pros and cons of the situation.

• Corporation should take decisions after consulting their shareholders, legal team and

employees
• Corporation should be ready with some short-term contingency plans based on

unforeseen political and activism related fall-outs in near future.