Ubisoft is a French video game company that has become a multinational enterprise through expanding globally since its founding in 1986. It has development studios across Europe and North America to take advantage of local talent and lower costs. Going multinational allowed Ubisoft to achieve higher growth, profits, and market share by efficiently transferring resources between countries. However, managing global operations and competing against larger publishers presents ongoing challenges. Ubisoft has seen financial success as the #4 ranked global publisher, but must continue innovating games to maintain this position despite industry competition.

1. Adam Carr-Braint
Nour Hamad
Mursal Mohd Kabir
Mark Moskvitine
Geraldine Waffo

2. Agenda
01 - About Ubisoft
02 - Is Ubisoft an MNE?
03 - Reasons for going global
04 - Benefits of being an MNE
05 - Challenges
06 - Video
07 - Conclusion
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3. Brief History
1986 – Ubisoft is formed in France by five Guillemot
brothers to publish and distribute entertainment
software.
1989 – Ubisoft creates distribution subsidiaries in
Germany and the United States.
1992 – Creative in-house production studios
created in France and Romania. Rayman franchise
is created and literally puts Ubisoft on the map as a
developer.
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4. Brief History
1996 – After a success with its title “Rayman,”
Ubisoft is listed on Paris Stock Exchange and a
Chinese studio is founded.
1998 – Ubisoft expands by acquisitions of
successful studios and creation of new ones like
the Montreal studio.
Today Ubisoft is now a company with world’s
largest production studio located in Montreal,
Canada and annual sales of over 680 million euros
(in 2007).
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5. -France
-Germany
-Italy
-Spain
-United Kingdom
-Bulgaria
-China
-Morocco
-Romania
-Canada
-USA
Development Studios
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6. Major Developers
01 - Nintendo
02 - Electronic Arts
03 - Activision
04 -
Ubisoft
05 - THQ
06 - Take-Two Interactive
07 - Sega (USA)
08 - Sega (Japan)
09 - Microsoft
10 - Eidos
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7. Why go multinational?
By expanding geographically Ubisoft was able to:
- Achieve higher growth and greater profits as well
as larger share of the markets.
- Attract the best talents from all over the world, to
increase its global reach accordingly.
- Take advantage of government grants and lower
costs in other countries.
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8. Why go multinational?
By expanding geographically Ubisoft was able to:
- More efficiently transfer capital, managerial
skills, culture, technology, product design, brand
names, products and services across countries.
-To keep the average operating cost per employee
is $66,000 per year; about a third less than the
industry average, according to Ubisoft CFO Alain
Martinez.
- Produce innovative, high-quality labels and
acquire an in-depth knowledge of its consumers
and their expectations.
07

9. How the French videogame company recruits its
foreign legion:
Going Global
- Go where the talent and students are.
- Go where the competition isn’t.
- Go with the flat organizational chart.
08

10. Global success?
- Ubisoft’s strategy translated into €680 million in
2007 and growing.
- Its market share rose in all key markets, ranking
#4 worldwide.
- Also, it was ranked second leading international
publisher.
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11. Global success?
- Ubisoft won more than 40 prestigious awards.
- Continues to grow and take advantage of
industry’s evolution.
- Projected sale for 2008 are €800 million.
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12. Global success!
-Microsoft’s Xbox 360™ and Sony’s Playstation 3™
continue to gain ground and with their success
Ubisoft gains potential customers.
- Ubisoft seems a very compelling investment
according to various financial analysts.
- Ubisoft has amassed a number of top brands in
recent years and is one of the best publishers in
the business.
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13. Challenges
Competition:
- Huge Budget for The "next generation" of games
- Ubisoft's cost savings a competitive advantage
- American firms profit margins at risk with
soaring labor costs
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14. Challenges
Competition: Marketing shortcoming
- Limited Marketing efforts
- No top sellers in the United States in 2005
- Market research driving competitors like
Electronic Arts
- Low Volume sales result in poor operating
margins
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15. Challenges
Managing its foreign labor:
- Managing young talent is crucial to the business
- Teams of 80 to 90 employees,
- with managers in a single "war room" to create a
game's core technology.
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16. Challenges
Contingencies:
- Electronic Arts purchased an almost 20% share
of Ubisoft, which was viewed hostile.
- Ubisoft is struggling to compete with other large
publishers in the very profitable Massively
Multiplayer Online games market.
- Ubisoft constantly faces PR problems (support,
Starforce, conflict with EGM)
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17. VIDEO
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18. Conclusion
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Ubisoft was able to benefit from becoming an MNE:
- Global reach allowed them to claim their share of
resources and markets.
- Significant financial benefits from settling in
countries where operating costs are lower.
- Possession and development of highly
successful franchises.
- Expansion into CGI animation markets with future
prospects in the movie industry.

19. Questions?
Thank you for your attention!
(please wake up your neighbour now)
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