1. Porter’s 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 2/16/01 4/28/01 2/16/01 Start Gathering Data for Surveys 3/11/01 Deadline for All Surveys. Begin Analyzation with Access. Begin Gathering All Secondary Data 3/16/01 Deadline of Analyzation of Survey Data with Access. Begin Research on Websites 2/28/01 Decide on All other Form of Primary Research and Start Gathering Data 4/11/01 CAP Written and Executive Summary 3/26/01 CAP Homepage Presentation. 3/30/01 Finish Gathering All Data. Begin All Analyzation. Gather Ideas for Video 4/6/01 Finish Analyzing. Begin Writing for CAP and Executive Summary. Start Video Shooting 4/23/01 Deadline for Video 4/28/01 CAP Party for Group 3- Don’t Fight the Sweetness!

11. The End Thanks. Any Questions?