The Evolution of Electronic Arts

For example, up to now if Sony were to become even more dominant in the marketplace, EA would still want to give way and distribute games that worked on Sony's competitors' game consoles. Another anchorstone achievement cistron involves managing inventory levels and properly forecasting demand. EA uses its industry start out to forecast demand on a product-by-product basis and thus manufacture based on these forecasts. To be successful, EA must be right about demand far more oftentimes than they argon wrong. EA's business is extremely seasonal, so if one or more of the new products is not advantageously accepted and so EA's sales revenues and profits could be adversely affected.

For EA, another key success factor involves the ability to attract and retain fit employees ? particularly those in product development. These creative employees are an subjective factor in EA's growth and development. It is probably not an parody to suggest that the company's future success depends, in large measure, on its ability to continue to attract and retain certain key employees.

Another key or critical success factor is North American sales. For fiscal 2003, net revenue from sales in North America increased by 31 percent to $1.4?billion versus $1.1?billion in fiscal 2002.

2A4. patience Competitive analysis: The business EA is involved in is highly competitive. It requires the continuous development and introduction of new titles. Competitors vary in size from sma

2A4.1.a. Bargaining designer of buyers: New releases from EA typically retail for between $30.00 and $50.00 and it is possible that consumers leave behind one day balk at paying this oftentimes for a game ? especially if they learned how inexpensive these products are to produce.

However, the bargaining power of consumers is low because purchasing is made by individuals. The bargaining power of retailers is higher because they purchase in bulk, and because they sock how profit up to(p) EA has become, and how inexpensive a game is to manufacture. Buyers for retailers are able to demand concessions from EA including price protection and stock balancing privileges.

inclined the fat that EA fails to deliver products at the right times, sales get out suffer one alternative would be to create recourse stocks ? in effect to over build certain products to process prevent stock outs. The risk is unbalanced inventories, as well as stale and obsolete products in EA's owned inventory.

ll companies with check resources to large, diversified corporations with substantial financial resources and marketing expertise.

EA only has an treaty with AOL on its Internet based games. If AOL changes its mind, EA would have trouble determination a business partners of sufficient size and with the scope of offerings open to AOL subscribers.

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