Electronic Arts Strategic Management Essay Example

develop games based on Movie or certain type of sports. The creative process is only in making the game more interactive and not in developing the new characters and plots. -Massively Multiplayer Online Games (MMOG), with this online community a strong bond between games and players can be established.

This will make easier for EA to get feedback for their games and increase evenue. -Emergence of mobile gaming and collaboration with cellular provider. WeaknessThreat -Slower transition adopting new technology, new platforms and new markets. -Some of the leading profit makers in video games is associated to other entity such as FIFA, NFL, NBA and also collaboration with movie industry such as Harry Potter, Monster Inc, Tomb Raider and almost all new movie releases targeted to young audiences. This relationship could be a blessing and a burden, since EA has to pay for the royalty and attached to the agreement between both party.

Rapid change of game platform and technology -Sharply rising in development cost -Declining price for video games -Royalty fee and license to other party -Dependent on game console. If new console released is delayed, than the game produced by EA, will also be delayed -Higher competition between game developer in turn will make higher promotion budget Macroenvironment Analysis: Recommendations: In order to to become the biggest and best entertainment company in the world, there should be a collaboration between the company, academia and the government. They should make efforts on the following three strategies:The first being a “development strategy”; the second a “business strategy”; and the third a “communications strategy. ” Development Strategy (1) Establish an environment that brings out the creator’s potential - Internal,

national and also international to acknowledge and reward outstanding game creators should be created. - Conferences for game developers should be held, and the scope of game companies’ confidentiality obligations and procedures for authorizing a game’s release should be clarified. (2) Reinforce the system for ensuring the promotion of high-caliber human resources within the company The skills and career paths required for games developers and other posts should be clarified, the introduction of a screening system should be considered.

Programs to acknowledge and reward students who produce games as well as the creation of a recruitment portal site for the game industry should be considered. (3) Promote human resources development through company-academia coordination - Internships in the game industry should be promoted. - Establishing a contact point in the game industry for coordination with educational institutions should be considered. (4) Establish a system for the promotion of R&D Game-related research conducted at universities should be studied; industry-academia coordination and inter-company coordination should be promoted. -Presenting awards for new technologies and essays related to games should be considered. Business Strategy (1) Promote business development that makes use of the broadband environment - Establishing a forum for coordination between home video game companies and online game companies, as well as a forum for exploring measures to cope with new issues that accompany the development of online games, should be considered.

Promote business development of small- and medium-sized venture firms - The exhibition of the incubation (support for new projects) functions of universities should be promoted, along with the improvement of a fund procurement environment for games companies. Communication Strategy (1) Implement efforts aimed at two-way communication - Efforts should

be made to establish two-way communication with society and people by setting up a forum for dialogue between industry and customers, parents and guardians, those in the education field, the media, etc. Reinforce efforts for the sound development of young people - Regarding the “new rating system by age” of the Computer Entertainment Rating Organization (CERO), activities should be undertaken to disseminate this system throughout society and among the people, and constant reviews should be made that take the social context into account. Furthermore, activities should be advanced to ensure that the new system is in line with other rating systems (for example those for movies, videos, etc.), and efforts should be made to realize an even clearer rating system.Similar essay: “Benefits and Limitations of Strategic Management Process”