In fiscal 2005, approximately 16% of Sea’s net revenue was derived from sales Of EAI Studio games designed I I for play on the Oxbow. Nintendo – under the licensing agreement, EAI engages Nintendo to supply Nintendo Gamble] I proprietary optical format disk products for their products. In fiscal 2005, I approximately 7% of Sea’s net revenue was derived from sales of EAI Studio games designed I I Value Chain Stance narrow (game software scope) LIFO play on the Nintendo Gamble. I Broad (total video game market) – EAI focus on the software component and not a complete video game product. N hardware companies in order to pursuit new games. Interdependence Len conjunction to EAI successful online properties, they had engaged in 585 million 209). Co-marketing with America Online (AOL) (page ad traditionally partnered with a specialty mobile game developer, licensing out EAI-contrived properties in exchange for revenue sharing from the sales to mobile I customers (page 210). I EAI had provoked faith media conglomerates like Victim within the Advertorial to integrate EAI videotapes into lifestyle TV shows (page 211).
Branding and specific In 2005, most of EASE interaction with the film industry had been through licensing of I Popular movie series (page 211). I Resource Commitment Stance Deep in absolute, deep in relative terms I Financially – EAI has a strong financial background. Exhibits 3 (EAI Financial from he I Year 2001 to 2005) show that there is a constant increment from year to year in the net I income (page 203). To date, EAI has published games for over 45 different platforms including the on line in I space, the mobile space, the television space and the film space.
Resulted in constant I increment from year to year in the total operating expenses as well (page 203). I I Management Stance Strong Fit with current size Involvement of industry expertise in providing the extreme technologies (hardware) to videotapes software. Dimension I Fairly strong 2. Internal Technology Sourcing I the final product of I I Comprehensiveness Across I Substance Internal technology sourcing I Competitive Strategy stance Industry and technology leader I Electronic Arts (EAI) is famously known for developing high quality and at times real simulation games I ranging from sports to arcade.
Experience fastest growth in video industry as EAI had released 27 fiscal year (page 200). L”platinum titles” in the 2004 EAI was the leading provider in the industry as their net revenue had reached billion dollars II I the year of 2004 over $7. 4 billion in game software within the US and was listed into the Fortune 500 | (page 200). I EAI had maintained leadership in the videotape world. On every major videotape console, EAI had #1 or #2 | I was solidly #1 share for PC’s (page 202). I share and EIA plays a major role in designing the games.
EAI is classified as Tacit Technology where the technology I I programmer (human being). List recited in the mind of the EAI earned a reputation as a game company that produce quality titles based on other intellectual properties (IP). Their business is based on the creation, acquisition, exploitation and protection of I intellectual property. Of this intellectual property is in the form of software code, patented I genealogy, and other technology and trade secrets that they use to develop their games and make them I run properly on the platforms.
Sea’s products also contain content licensed from others, such as trademarks, fictional characters, storyline and software code. EAI transports some of their IP beyond I I console and PC. They talk With potential producers to create an interactive television show (page 208). L I Value chain stance broad (game software scope) Moderate (total video game market) Software of the game is the key component of the whole structure of the video game and possesses FL I Lethe process involved.
EIA can capture all generation to buy video game. An increases of up to 30 years old computer or videotape player and number tot hours people spent on game increase 20th hours/weeks (page 201). As I I result, EAI penetrate the online video game segment, gay 2004, there were over 80 million casual gamers Rollicked (page 202). In conjunction to transition years for console, purchasing of gamers on hardware and software were I I slowing and EAI had at least 25 games under development for next-generation systems (page 204).
Ion top of licensing key IP from outside parties, EAI gives a strong push to develop new IP that could bell I built into franchises with recurring revenue through sequels and expansions (page 204). Relative terms I Internal technology sourcing Deep in absolute, deep in EAI invests in the creation of software tools to more efficiently develop games for multiple platforms. The investment includes facilities and equipment that allow EAI to create and edit video and audio in their games. I recordings that are used EAI develop and publish interactive software games.
The games are broken down into 3 major categories: I I products (2) Co-publishing products | (3) Distribution products. ‘Advertising – Generated Mimi/year (page 202) audio I Financially – EAI has working capital of 52,88 million in 2005, a significant increase from $1. 34 million 2003. This means that while decreasing liquidity risk without impair expected profitability since it I I increases short-term investments, marketable equity securities rather than cash in terms of growth rate I From 2003 to 2005.
These will resulted to the success of EAI company in the near Investment – EAI had already begun the process of investing heavily for next generation titles, and it showed. Cash reserves had fallen from 52. 1 billion to $1 _3 billion, and net income was off the 2004 peak I (though still strong, a testament to EN’S success in implementing their transition management strategies I (page 209). Management stance (org. Fit) I Strong fit With current size Well defined organization Structure. 9,000 employees worldwide as of March 31. 2012 (http://www. EAI. Mom) I The director and the team continuously seek for creative ways in ensuring EAI dominant position in the I interactive environment to reach gamers and promote the EAI brand in ways beyond standard advertising I I I (page 200), EAI Management team were focusing in determining the best path through convergence and responsible for averaging the resources tot EAI in directions that were not too obvious to the departments that resources. [controlled those also maintained a small internal production team in-house to oversee new game development (page 210). Comprehensiveness across dimensions Strong | 3, Product Development I Product Development I I Competitive Strategy stance I EAI is a technical and industry leader. EAI is a pioneer in designing the video games and their technology are classified as tacit technology. I Strong technical expertise (programmer) contributes for rapid development. I EAI and the videotape industry were fortunate when EAI immediately taking advantage in some potential lucrative new market during the transition period of a new console in 2005 (page 204).
With strong I I I market research and advertising, EAI was able to evolve accordingly to the new intersection between 207). videotapes and traditional media (page Value chain stance Narrow scope but broad potential. Moderate I EAI still following the technology as the technology are contain joyously improved. For example, innovation from portable gaming space to mobile space, Portable gaming was limited to dedicated gaming devices was distinct from “mobile” gaming which was defined as gaming on a cell phone I or other communication device. In future, micro-transaction structure might enter the market and as provider EAI are ready with the software or content preview (page 206). Deep in absolute, deep in relative term Financially stable with adequate capital and an active market research group to structure deals a ND I focus is on the four spaces: Marketing campaign. EN’S main The online space – Focus on both current efforts and future opportunities. An option of portals that can I I reach the most number of people and an option for Google’s rise in focusing on search and shifting the I I lathering of all the players (page 210).
The mobile space – A lot of variety that may influence EAI on forming relationships either with the primary carrier (mobile data) or with virtual network operators (or Moves) (page 210). I The television space – With the advent of new technologies such as DVD’s, EAI would position well with Ethel I strategically important players in the changing television space despite a success with MAT and Victim I (page 211). Tithe film space – Much of the concern for EAI in working with the film industry was focused around creative issues, and which players held the power at each stage in film’s creation (page 211).
I I Management stance . Org fit) I Strong fit in current size I EAI is only involved in making the software for the products (videotapes). With current expertise and market research team, EAI can produce highly innovative designs. Input from the Good connection (cohesive team) with the console, portable gadgets, PC and mobile (hardware) companies. I Comprehensiveness across I Fairly strong 4. Process Development I dimensions I Process Development I I Competitive Strategy stance I Leader IA leader in process development, as the technology is in the mind of the programmer. Superior skills in I designing the games.
EAI was the leading provider of videotapes for consoles and personal computers (package). Developing their own advertising and marketing strategies. An amount of $50 million was spend with advertising. Stance respect to the Value chain Strong Earlier in 1399, EAI was initiated a marketing agreement which utilized EAI online EAI online games. With the AOL marketing deal, EAI was successful as started to bring profits I in 2005. I Strong process improvement in the online value chain. The sites controlled an out-sized portion of the overall revenues from the Internet as they controlled much Of the physical low of goods (page 215).
