Electronic Arts: SWOT Analysis

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  • Topic: Electronic Arts, Madden NFL, Game
  • Pages : 2 (352 words )
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  • Published : October 18, 2010
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* Ability to Change
* Example: when they realized that sales only increased by 4.7% they decided they needed to restructure the way they were doing business. By narrowing the company to four major divisions, they believe they will increase the speed of developing products and increase sales * Focus on research and development

* the company invested about $1,041 million in research and development for fiscal years ended March 2007, much more than other competitors * Popularity of Games
* Example: Madden NFL 07 alone sold over 5 million copies last year, which puts the total tally of Madden games sold to just over 60 million Weaknesses
* Dependence on consoles
* Just because a new and amazing console is created, that doesn’t mean that people will run out to buy it (Playstation 3) * Niche Market
* For the 2007 fiscal year over 70% of the company’s revenues from the US were derived from seven key customers * Weak Global Sales
* In order to remain globally competitive, EA must increase sales worldwide and in the valuable Asian market Opportunities
* Mobile Gaming
* With recent acquisitions, like that of JAMDAT, and also announcements of creating games for iPods, it is clear that EA will be focusing on this ever increasing market * Increase of Online Gaming

* They have increased the Pogo.com division to international arenas like the UK and also are set to acquire Mythic Entertainment, a creator if multiplayer online role-playing games * Change in Target Consumer

* Part of EA Casual Entertainment’s role is to focus on courting to non-traditional gamers, that is to say women and adults. Threats
* Issues with Consoles
* The industry fluctuates along with rise and fall of the hardware systems (again the Playstation 3 issue) * Increased Software Piracy
* As the ability to pirate software becomes easier and cheaper the number of pirated copies continues...
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