Strategic Management - EXTERNAL ANALYSIS Report

Project​ ​2.​ ​In​ ​Charge​ ​for​ ​the​ ​Game​ ​-​ ​Electronic​ ​Arts   

With​ ​27​ ​titles​ ​selling​ ​more​ ​than​ ​one​ ​million​ ​units​ ​each,​ ​2012-2013​ ​exclusive​ ​strategic 

partnership​ ​with​ ​Disney​ ​and​ ​revenue​ ​almost​ ​US$5​ ​billion​ ​in​ ​2016,​ ​Electronic​ ​Arts​ ​(EA)​ ​is​ ​the 

largest​ ​and​ ​the​ ​most​ ​successful​ ​video​ ​firm​ ​in​ ​the​ ​world.​ ​Some​ ​of​ ​the​ ​best​ ​known​ ​EA​ ​video 

games​ ​include​ ​The​ ​Sims​ ​and​ ​Harry​ ​Potter​ ​games​ ​and​ ​the​ ​FIFA​ ​Soccer,​ ​James​ ​Bond,​ ​Madden 

NFL​ ​Football.​ ​Each​ ​of​ ​the​ ​titles​ ​takes​ ​from​ ​12​ ​to​ ​36​ ​months​ ​to​ ​develop​ ​and​ ​costs​ ​from​ ​US$5 

to​ ​US$10​ ​million,​ ​but​ ​successful​ ​titles​ ​can​ ​generate​ ​hundreds​ ​of​ ​millions​ ​of​ ​sales.​ ​In​ ​2002, 

when​ ​domestic​ ​video​ ​games​ ​sales​ ​in​ ​the​ ​United​ ​States​ ​overtaken​ ​domestic​ ​box​ ​office 

receipts,​ ​the​ ​video​ ​games​ ​industry​ ​became​ ​larger​ ​than​ ​the​ ​movies.​ ​The​ ​video​ ​games​ ​are 

created​ ​not​ ​just​ ​for​ ​teenage​ ​boys.​ ​One-third​ ​of​ ​adults​ ​over​ ​the​ ​age​ ​of​ ​18​ ​play​ ​video​ ​games. 

In​ ​recent​ ​years​ ​Electronic​ ​Arts​ ​introduced​ ​various​ ​new​ ​projects,​ ​including​ ​virtual​ ​reality 

platforms​ ​and​ ​virtual​ ​humans.​ ​​How​ ​would​ ​you​ ​define​ ​the​ ​industry​ ​in​ ​which​ ​Electronic​ ​Arts 

operates?​ ​Who​ ​are​ ​the​ ​other​ ​players​ ​operating​ ​within​ ​that​ ​industry?​​ ​What​ ​are​ ​the​ ​key​ ​success 

factors​ ​in​ ​this​ ​industry?​ ​What​ ​is​ ​the​ ​role​ ​of​ ​technological​ ​innovation​ ​in​ ​this​ ​industry?  

Who​ ​are​ ​the​ ​other​ ​players​ ​operating​ ​within​ ​that​ ​industry? 

- PESTLE 

- Opportunities 

- Threats 

- Industry​ ​and​ ​competitors’​ ​environment​ ​of​ ​the​ ​company​ ​(Porters​ ​Five​ ​Force​ ​Model) 

PESTLE​ ​ANALYSIS​ ​OF​ ​THE​ ​VIDEO​ ​GAME​ ​INDUSTRY 

POLITICAL  

- Different​ ​countries​ ​have​ ​different​ ​Government​ ​regulations​ ​and​ ​industry​ ​laws 

- Brexit​ ​-​ ​The​ ​2016​ ​referendum​ ​affected​ ​the​ ​distribution​ ​of​ ​EA 

- European​ ​Protectionism​ ​laws​ ​and​ ​trade​ ​tariffs 

ECONOMICAL 

- Household​ ​income 

- Highly​ ​seasonal​ ​video​ ​game​ ​industry 

SOCIAL  

- Changing​ ​demands​ ​of​ ​gamers 

- Contrasting​ ​views​ ​on​ ​violent​ ​video​ ​games 

TECHNOLOGICAL 

- Technological​ ​upgrades​ ​to​ ​meet​ ​demands 

LEGAL 

- Software​ ​piracy 

- Licensing 

- Lawsuits 

ENVIRONMENTAL  

- Digital​ ​transformation 

- Energy​ ​efficient​ ​products​ ​and​ ​green​ ​sustainable​ ​initiatives 

OPPORTUNITIES 

- Complete​ ​online​ ​gaming​ ​portal  

- Stimulation​ ​training​ ​games​ ​for​ ​the​ ​military 

- Strengthen​ ​relationships​ ​with​ ​Console​ ​Giants​ ​-​ ​Playstation,​ ​Xbox 

- Interactive​ ​game​ ​products  

THREATS 

- Tough​ ​Competition​ ​from​ ​rival​ ​companies 

- Piracy​ ​of​ ​games 

- Legal​ ​Lawsuits​ ​(violation​ ​of​ ​image​ ​rights,​ ​class​ ​action​ ​lawsuits,​ ​etc) 

- Rise​ ​of​ ​Mobile​ ​apps​ ​and​ ​games 

COMPETITORS 

- Blizzard,​ ​Activision,​ ​Square​ ​ENIX,​ ​Konami,​ ​Nintendo,​ ​RIOT 

 

Electronic​ ​Arts​ ​Inc​ ​Case​ ​Study​ ​Report 

-​ ​A​ ​Video​ ​Game​ ​industry​ ​PESTLE​ ​Analysis 

-​ ​Opportunities​ ​and​ ​Threats​ ​analysis​ ​of​ ​Electronic​ ​Arts​ ​Inc.​ ​(EA) 

-​ ​Porters​ ​Five​ ​Force​ ​Model 

 

1000​ ​words 

Referencing​ ​-​ ​MIN​ ​6​ ​journal​ ​articles,​ ​2​ ​books​ ​AND​ ​1​ ​website 

Chicago​ ​16​ ​style