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Environmental Scan
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Internal Analysis
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Strengths Weaknesses
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SWOT Matrix
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External Analysis
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Opportunities Threats
Strengths
A firm's strengths are its resources and capabilities that can be used as a basis for
developing a competitive advantage. Examples of such strengths include:
patents
strong brand names
Weaknesses
The absence of certain strengths may be viewed as a weakness. For example, each of
the following may be considered weaknesses:
Opportunities
The external environmental analysis may reveal certain new opportunities for profit and
growth. Some examples of such opportunities include:
loosening of regulations
Threats
Changes in the external environmental also may present threats to the firm. Some
examples of such threats include:
new regulations
Weaknesses
Threats
S-O strategies pursue opportunities that are a good fit to the company's
strengths.
W-O strategies overcome weaknesses to pursue opportunities.
S-T strategies identify ways that the firm can use its strengths to reduce its
vulnerability to external threats.
W-T strategies establish a defensive plan to prevent the firm's weaknesses from
making it highly susceptible to external threats.
* EA Games has four segments under their label: EA Games, EA Sports, The Sims
and EA Casual Entertainment.
* The EA Games label has the largest percentage of research and development
staff, and produces action-adventure, role playing, racing and combat games and
the extraordinarily popular online role-playing games.
* The EA Sports label produces sports-based video games, including the Madden
NFL, (which in 2007 grossed $100 million in sales in their first week on the market),
FIFA Soccer and Tiger Woods PGA Tour franchises. The sports division brings in 43%
of EA's revenue.
* The EA Casual Entertainment label develops games that are intended to be
quick to learn and play online, making them easily accessible for a wide audience.
Pogo has 1.6 million subscribers.
* EA Games has a social responsibility platform that includes a grant program,
software donation program, volunteer opportunities, and supporting non-profit
organizations and schools by giving to organizations that provide services to
underprivileged youth in the areas of math, computer science, music and art.
WEAKNESSES
OPPORTUNITIES
THREATS
* Since 2004 sales have been steadily increasing, however, profits have been
steadily decreasing until 2008, when they actually had a negative profit margin.
They earned $3.8 billion in sales, but had a $454 million loss.
* Sales and profits are dependent on the success and prolonged purchasing
power of gaming consoles. If sales for a gaming console wane (such as a Playstation
or Wii) software/game sales will slump.
* Software piracy has become a serious problem, especially in countries, like
South Korea where laws are not enforced; software is pirated and distributed
without much fear of consequences, cutting into EA Games' profits.
* In May 2009, EA Games was sued claiming they illegally used the names and
likenesses of thousands of college football and basketball players in their software
since the 1990's.
* Due to their executive staff layoffs, restructuring, and lack of stability there has
been speculation that they are a prime candidate for a takeover by other global
entertainment companies.