Ea Games

Topics: Electronic Arts, Video game industry, Video game Pages: 9 (3006 words) Published: February 10, 2011
Change is part of organizational growth and survival in our modern global economy. If an organization is going to grow and survive, it needs more than traditional strategic business plans. One of the principal drivers of competition is technological advancements. Company’s can develop a strong competitive advantage through the strategic use of information technology. This white paper will discuss information technology (IT) concepts that have successfully been utilized by other organizations. The purpose is to benchmark how other companies have successfully implemented information technology and how SaveWithUS can conceptualize these strategies. The focus of IT is not just on the internal applications or computer systems that reside on the network; rather the focus is the strategic approach that information systems can have to support the business plans, goals, and objectives of the organization. Ultimately, a strategic approach to information technology should improve a company’s competitive advantage, business intelligence, reduce costs, increase margin, streamline business processes speed, accuracy, and reliability, communication, data based decision making, and increase overall customer value (Mickler, 2008). Many start-up companies develop a business plan but rely heavily on their own experience when it comes to business decision making rather than facts that an existing company would use. As the company grows, mistakes become more costly, they will rely more and more in information to base sound decisions. SaveWithUS is at the juncture where business decisions need to be based on facts not guesses. To remain competitive and profitable, SaveWithUS needs to reduce costs of merchandise manufactured and products purchased for resale. Technology has changed the way information is captured, stored, processed, analyzed, distributed, communicated; and the organizational infrastructure which is used to reduce costs, increase profits, and gain a competitive advantage. The effective use of information technology requires an organization and cultural change. The most important component in the change equation is making the decision to change. If resistance to change permeates, this will lead to the breakdown and irrelevancy of what was once a strong organization (CTU Online, 2008). Change is forever part of business sustainability. Understanding the external business environment can improve the strategic approach that an organization should adopt in a competitive market. A highly competitive environment includes multiple firms targeting the same market to win the same business. The external environment has forces which business must contend with for survival. Michal Porter has devised a five forces model that focus on these external pressures. The five pressures are 1) rivalry among existing competition, 2) threats of substitute products, 3) bargaining power of suppliers, 4) bargaining power of channels and end users, 5) barriers to entry. This model can be very helpful to think of competition in its broadest sense which suggests areas for competitive posture. Porter’s five-force’s model provides the framework to judge an organizations position and analyze a business level strategy which will describe how an organization competes in the marketplace (Frenzel & Frenzel, 2004). These are just a few reasons why information technology is the critical infrastructure of any organization. The case study referenced herein is Electronic Arts (EA), the leading independent video game publishing company, producing popular titles such as The Sims, Madden NFL, and Medal of Honor. They also publish games based on Hollywood franchises such as the Lord of the Rings, Harry Potter, and The Godfather. Nestled in Silicon Valley, Electronic Arts is a very successful organization with more than 50 best-sellers that sold more than a million copies each. Many people would believe that Electronic Art’s is a video game development company which base its...
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