Analysis: Electronic Arts Company

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Electronic Arts (EA) is an American developer, marketer, publisher, and distributor of computer and video games. The gaming industry where the company operates is one of the most competitive and dynamic industries. Perform a PEST analysis and five forces analysis on the industry as well as SWOT analysis and suggest an appropriate strategic course for Electronic Arts.

Electronic Arts, Inc. (EA) is a worldwide developer, dealer, publisher and distributor of video entertainments. The organization was an initiate of the early home computer amusements organization and was remarkable for encouraging the designers and programmers in charge for its games. Initially, EA was a home computing amusement publisher. EA developed via achievement of several successful developers. It had grown to be one of the world’s biggest third party publishers. (Wikipedia ,2010)

Presently, it is mainly successful goods are sports games available under its EA Sports label, entertainments based on trendy film authorizes such as Harry Potter and games from long-running franchises like Medal of Honor, Need for Speed, The Sims, Battlefield and the presently games in the Burnout and Command and Conquer series. With the majority of its sports instruction series being industrial by EA, and the world’s biggest enlargement studio EA Canada which they are also the distributors of the Rock Band series. (Wikipedia ,2010)

2.0 PEST analysis tools

PEST can be described as political, economic, social, technological issues, which are applied to evaluate the marketplace for a company or organizational unit. The PEST analysis headings are a structure for analysis a position, and can also be applied to evaluate a plan or position, trend of a business and marketing proposal. It is a helpful implement for understanding marketplace situation, in which they are working, and the opportunities and threats that be positioned within it. (Strategylabs, 2010)

The model’s issues will vary in significance to a particular company based on its business and the products it manufactures. Moreover, issues which are more probable to alter in the outlook or more related to a specified business will carry greater meaning. Additionally, EA who create a large range of goods can find it more helpful to evaluate one division of its organization at a time with the PEST model, hence concerning on the particular issues appropriate to that one division. (Researchmarkets, 2009)

By understanding the situation in which EA function exterior to the divisions, they know how to take benefit of the opportunities and diminish the threats. Particularly, it is a functional tool for understanding threats linked with market development or decline and as such the situation, prospective and trend for them. It is finding out where they are in the circumstance of what is occurring exterior that will at several point cause what is happening within of the business. (Modelbenders, 2009)

2.1 Five forces analysis

Porter’s five forces analysis contracts with issues external a business that influence the environment of rivalry within it, the forces inside the organization that control the approach in which firms compete, and accordingly the organization’s likely productivity is accomplished in Porter’s five forces model. An industry has to realize the dynamics of its businesses and marketplaces in order to compete successfully in the market. It described the forces which make rivalry, competing that the competitive atmosphere is formed by the relations of five dissimilar forces acting on a company. It seems at five solution parts specifically the threat of entrance, the power of consumers, the power of providers, the threat of substitutes, and competitive challenges. (Emerald Insight Staff , 1993)

Understanding the environment of each of these forces gives associations the essential approaching to allow them to make the right plans to be successful in their marketplace. It is a simple tool that supports EA understanding where power lies in a business situation. It also assists to recognize both the strong point of their current competitive situation, and the strength of a situation of them is looking to move into. With an understandable recognizing of where power lies, it will allow EA to get fair benefit of its strengths, develop weaknesses, and avoid taking incorrect stages. Consequently, to concern this planning instrument efficiently, it is vital to know the position and to look at each of the forces separately. (Modelbenders, 2009)

2.2 SWOT analysis

SWOT analysis is a strategic planning system applied to assess the strengths, weaknesses, opportunities, and threats concerned in a plan or in an industry venture. The interior issues can be analysis as strengths or weaknesses depending upon their force on the company’s goals. The exterior issues can comprise macroeconomic matters, technological alter, legislation, and socio-cultural transforms, as well as alters in the market or competitive situation. (Strategylabs, 2010)

In many rival analyses, EA make completed outlines of each competitor in the marketplace, concerning particularly on their virtual competitive strengths and weaknesses utilizing SWOT analysis. EA will observing each competitor’s price structure, sources of earnings, resources and competencies, competitive situation and manufactured goods isolation, degree of vertical combination, historical reactions to business enlargements and other issues. (Emerald Insight Staff , 1993)

Another instance is EA, which is a great example of how computer amusements business can utilize a SWOT analysis to shape out a strong company strategy. They have known that its strength was selling openly to customers and keeping its prices lower than those of other competitors. EA put together a company strategy that integrated mass customization and just-in-time manufacturing and allowing consumers enjoy their computer amusements with complete imagination in the games world. (Researchmarkets, 2009)

2.3 The analytical tools in solutions

It helps EA in discovery the true resolution that best meets their requirements and can play a dynamic role in the accomplishment as well as support. To make easy this development, they have recognized strategic deal with key vendors. The growing resolutions portfolio presents customers with leading skill by world-class partners and developed in the marketplace. EA suggests proven resolutions that provide stability, scalability and the elasticity needed to maximize effectiveness and performance in a extremely competitive atmosphere. (Sadler, Philip , 1993)

EA bring value to their customers by joining that recognize how with an entire suite of feature rich resolutions that offers the best functionality part. Thus, the system to develop the productivity and efficiency of company analysts, EA must continue to enlarge the width and strength of their data storehouses, which will diminish the number of data sources that analysts need to entrance directly. They must also equip analysts with improved analytical tools that manage the way they do. (Coate, Patricia , 2007)

In line with the ever growing complexity of the competitive marketplace EA has abilities far beyond those of the conventional intermediary, letting them to manage as their customers’ reliance risk partner with resources to contain every part of their business. They give the firm with the most proper resolutions, through consultancy services, systematic tools and risk goods that continue and improve their customers’ situation in the market. (Sadler, Philip , 1993)

3.0 Conclusion

Any company must seek to understand the nature of its competitive environment if it is to be successful in achieving its objectives and in establishing appropriate strategies. If a company fully understands the nature of the analysis, and particularly appreciates which one is the most important, it will be in a stronger position to defend itself against any threats and to influence the forces with its strategy. The situation is fluid, and the nature and relative power of the forces will change. Thus, the need to monitor and stay aware is continuous. (Coate, Patricia , 2007)

Some issues during the implementation of these analyses strategic are crucially important for organizations to build long-term business strategy and sustaining competitive advantages rather than simply list the forces. Successful use of the analysis includes identifying the sources of competition, the strength and likelihood of that competition existing, and strategic recommendations for the action a company should take in order to develop barriers to competition. (Researchmarkets, 2009)

It is important to make sure that the sources are reliable and relevant to the current condition of the organization. It has to be viable, reliable and valid, in order to conduct a good analysis of the model. For this purpose, the gathered data and information has to be checked and be applied to the current business conditions. Further limitations could be present in the nature of market forces that reduce the applicability of the information sources to present situations and the amount of detailed information required. (Wikipedia, 2010)

4.0 Reference

Question 1

Wikipedia (2010), Electronic arts, retrieved on February 12,2011

from en.wikipedia.org/wiki/Electronic_Arts

Strategylabs (2010), Analysis of electronic arts, Retrieved on February 13,2011

from www.strategylabs.net/search-swot-analysis-of-electronic-arts_p8.asp

Researchmarkets (2009), Swot analysis , Retrieved on February 12,2011

from www.researchandmarkets.com/reports/…/electronic_arts_swot_analysis

Modelbenders (2009), Electronic arts, Retrieved on February 12, 2011

from www.modelbenders.com/papers/Smith_Game_Impact_Theory.pd

E-library

Emerald Insight Staff (1993), 1st ed., Strategic Management,  

Emerald Group Pub lishing Ltd

Sadler, Philip  (1993), 1st ed., Strategic Management ,

Kogan Page Ltd.

Coate, Patricia (2007), 1st ed., Focus on strategic management ,

 Emerald Group Publishing Ltd

Question 2

Suggest why different approaches to strategy development might be appropriate in different organizations such as a university, a fashion retailer and a high technology company.

Introduction

A business strategy naturally is an article that obviously expressive the way an industry will pursue and the steps it will take to accomplish its objectives. In a quality of business plan, the business approach results from objectives created to support the stated assignment of the business. In the examination step of business plan development, one of several processes is applied to evaluate a firm’s market, resources, barriers to achievement and specific advantages. The aim of strategic examination is to classify what a business needs to achieve, the strengths it can bring to bear on achieving the objective and weaknesses that require to be addressed prior to combination and accomplishment. (Sadler, Philip  ,1993)

Strategic consideration methodologies can comprise estimating the business circumstances, several of competitive situations, verifying what market forces are at work and ranking competitors, among others. Integrating a business approach typically is one of many steps in a larger production planning process. A business strategy starts with an overall vision. From the vision, a mission statement for the industry is constructed, regularly the shorter and more accurate the better. A mission guides to specific objectives the business will accomplish to complete its mission and that in turn guides to approach to attain goals. Specific plans are regularly then developed to support the business plan. (Coate, Patricia ,2007)

Corporate strategy

It is verifying the greatest plan to be competitive in the market. It assists to classifies, evaluates, and clarifies the main issues facing productions to deliver insights corporations can apply to develop performance and achieve a competitive advantage. It is focused with the overall principle and scale of the business to meet stakeholder outlooks. This is an essential level since it is seriously influenced by investors in the production and performs to lead strategic decision-making throughout the business. Corporate strategy is frequently stated openly in an operation statement. The associations have a vision and a plan for accomplishing that vision. They apply that strategy through everything they accomplish. These great associations are able to make and capture value and situation themselves for better value. (Businessdictionary,2009)

2.1 Business unit strategy

Strategic business unit (SBU) is focused more with how an industry competes profitably in an exacting marketplace. It focuses strategic decisions about option of goods, meeting wants of clients, gaining benefit over rivals, developing or making new opportunities. It is known as a business unit within the overall corporate identify which is distinguishable from other business because it serves a defined external market where management can conduct strategic planning in relation to products and markets. (Wikipedia ,2010)

The unique small business unit advantages that a firm insistently promotes in a constant manner. When organizations become truly large, they are greatest thought of as being collected of a number of productions. These organizational units are large enough and standardized enough to exercise organize over most strategic issues influencing their performance. They are controlled as self contained planning units for which distinct business strategies can be enlarged. A strategic business unit can include an entire organization, or can basically be a smaller division of an organization set up to execute a specific job. The SBU has its own business approach, goals and rivals and these will frequently be dissimilar from those of the parent organization. (Wikipedia ,2010)

Operational strategy

It is focused with how each division of the business is managed to bring the company and business unit level strategic way. It concerns on problems of resources, progressions, and groups. The operating strategy intends to close the strategic gap between business strategy and accomplishment. It transforms the strategic objectives into obviously described achievement aims and aligns the implementation process to the value intention. The operating strategy consists of several parts starting with the operating business form as the basis for development, function, and technical and human performance style. An operating business form is the association’s crucial logic for constantly accomplishing its principle goals. The desired outcome is to have a tactical to carry out the operating strategic plan. (Tmginconline ,2009)

A number of the key essentials comprise classify required decisions and correlated issues for business process such as key production processes, managing approaches. Additionally, it gives creative ideas for operating problems and to make new value opportunities. It is a model to close business development gaps and to understand business value. It can be described as the business development direction based on the general vision. For example, key decisions and leading values for key business processes and managing approaches. (Tmginconline ,2009)

2.3 Olympia College

Olympia College was established to meet the rising require for private top education in the country and is an associate of the well-known Raffles Education Group. There are choices of analysis of the strategic plan process within Olympia College. The operational strategy shows that direction into generating strategic competitive advantage in the development. Therefore, they can get a new system to structure their business functions and make sure the successful enlargement of their business in the competitive market. (Olympia ,2010)

Strategic planning is a long range planning procedure that helps in setting the direction of Olympic College. The strategic plan originates from the college’s mission and strategic vision and gives detailed actionable strategies for moving towards planned outcomes. Moreover, they have to help student improvement toward objective completion. It is more purposeful and successful in their efforts to bring education at a distance, finalize and realize a long range distance education plan. (Olympia ,2010)

However, they have to exploit community entrance to Olympic College, particularly for enlarge and apply an on-going enrollment management structure that informs instructional plans, student support services, and facilities planning. They are concerning attention on learning and to assist students, ability, personnel, and administrators perceive themselves as a society of beginners, encourage a college wide culture of measurement that embraces the consideration of learning outcomes and encourages the study of teaching and learning. (Olympia ,2010)

2.4 Padini Holdings Berhad

Padini sells ladies’ shoes and accessories, children’s clothes, maternity wear and accessories through different subsidiaries. They can apply the business unit strategy to formulate and execute the plans that will give a competitively greater fit the situation and accomplish the organizational objectives. However, it can assist Padini to emphasize attention on a particular regional market or consumer group. The long term plan of Padini also wants to do the interior and exterior review to strengthen the situation in the global market. ( Padini, 2010)

It shows a fashion viewpoint of each will covers a complete range of goods intended at a targeted customer. The corporation will carry on upgrading the image of its goods while emphasizing value and standard. It is successful grip in the productive but competitive women’s footwear market. There are strategies to strengthen its dominant situation with enhanced production lines and increased competence. Having successfully impressed its brand names into the perception of Malaysian consumers, Padini is moving to turn its different labels into regionally familiar fashion leaders. It aims to fulfill the potential of the export market, particularly in the Asian region, and will also step up in foreign country marketing for its goods. ( Padini, 2010)

2.5 Dell INC.

Dell Inc. is the top retailer of computer systems in the market. Dell sells desktop personal computers, notebook computers, network servers, and a diversity of computer software. They can apply the corporate strategy as a direction in which its production operations work together to get particular objectives. They implement that strategy for accomplishing their vision to build up a strong communication suppliers and customers relationships in the future. It helps Dell to find out the best strategy to be competitive in the marketplace. Thus, it will guide them to improve the work performance and gain a competitive advantage. (Dell, 2010)

Dell’s objective is to generate loyal clients by providing better experience at a great value. They are devoted to direct relationships, giving best goods with standard based technology outperforming the rivalry with value and an advanced client experience. Dell is the association which is recognized worldwide for its approach of direct selling to the customers and business customers due to which it has obtained greater profits and has grabbed large market share from its rivals. As the business develops with the period of time it is largely enterprise strategy is becoming stronger, complicated and established. (Dell, 2010)

Conclusion

Nowadays, competitive market a strategy that assures a constant approach to offering the goods or services in a system that will outperform the competition is significant. However, in performance with defining the marketing strategy associations should also have a well defined method for the day to day progression of executing it. A cost leadership strategy is based on the idea that the associations can manufacture and market a high quality goods or services at a lower cost than their rivals. These low costs must transform to profit margins that are higher than the manufacturing average. Some of the circumstances that must exist to support a cost leadership strategy comprise an on-going accessibility of working capital, excellent process engineering abilities, and close management of work, goods designed for easiness of manufacturing and low cost distribution. (Emerald Insight Staff ,1993)

It is important to know the market segment as described by the viewpoint characteristics associations have chosen as the objective for their offering. It is based on the criticality of the prospect’s require, their approach about alteration, the importance of the benefits, barriers that exist to integrating the offering into daily procedure and the reliability of the offering. The prospective for market penetration involves whether they are selling to past clients or a new outlook, how aware the forecasts are of what they are presenting, rivalry, growth rate of the manufacturing and demographics. The prospect’s willingness to give for product value is established by their understanding of competitive pricing, their capability to give and their want for characteristics such as value, stability and dependability, ease of utilize, consistency and steadiness. (Coate, Patricia ,2007)

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