Swot Analysis & Burgelman Framework for Electronic Art

SWOT ANALYSIS

Strengths

• Another strength of the business is that they develop product families (franchises) around many products. Every year they release new version of most of their sports games.

• Games are capable of operating on multiple platform systems

• EA has exclusive deals with Major League Baseball, Madden Franchises

Weaknesses

• Electronic Arts acquires the rights to include these kinds of intellectual property in their products through license agreements such as those with sports leagues and player associations, movie studios and performing talent, music labels, music publishers and musicians. These licenses are typically limited to use of the licensed rights in products for specific time periods.

• Royalty fees are set by console manufacturers

• Sales are dependent on new release of platform systems

• Year over Year Revenue growth is down 11%

Opportunities

• New consoles set to debut next year

• Growth and Sales potential look promising – one year from now

• On-line gaming can be a potential new distribution source for the company

Threats

• Patent claims

• Rising costs due to development of next generation games

• Increasing licensing fees

Process development

1. Competitive Strategy Stance:

Electronic Arts primary focus before was to develop games for PC and home consoles. But now they had to focus development on current consoles , along with investing in the new prospective advance home consoles , online games and portable console games. Like most entertainment companies, their business is based on the creation, acquisition, exploitation and protection of intellectual property. Some of this intellectual property is in the form of software code, patented technology, and other technology and trade secrets that they use to develop their games and make them run properly on the platforms. EA's products also contain content licensed from others, such as trademarks, fictional characters, storylines and software code. Electronic Arts acquires the rights to include these kinds of intellectual property in their products through license agreements such as those with sports leagues and player associations, movie studios and performing talent, music labels, music publishers and

musicians. These licenses are typically limited to use of the licensed rights in products for specific time periods. Also, their products that play on consoles include technology that is owned by the console manufacturer and licensed non-exclusively for EA to use

2. Value Chain Stance:

In efforts to increase sales and revenue , EA leverage its resources for a best convergence. EA decided to better market their product and reducing cost. They use the online space , the mobile space , the television space and the film space to market their product.

3. Resource Commitment Stance:-

EA had earned a reputation as a game company that could actually produce quality titles based on other intellectual properties . EA's competitive analysis had made them realize that there is an immense opportunity in the online gaming industry. Marketing teams within EA generally referred to the sort of mass-market advertising accomplish