Electronics Art’s (EA) competitive advantage
Electronics Art’s (EA) competitive advantage from the perspective of the industrial organization view (I/O) is their choice of industry is very attractive. According to The 2013 Global Games Market Report, game revenues will grow at a compound annual growth rate (CAGR) of 6.7% to $86.1 billion by 2016. The number of gamers worldwide will rise from 1.21 billion this year to 1.55 billion.
Next, we’ll have a perspective of resource-based view (RBV).
Before the ages of digital game , EA’s resource based view in the past was great.
They are just concentrated in making More than 100 titles games such as Battlefield, Madden NFL, FIFA Soccer, Rock Band, Need for Speed, and The Simpsons.
SNS contents like monthly fee, partial monetization, facebook and on line services like web games, various portal sites or distributed contents have captured more than 40% of the market. It is widespread across the console game market through out total game market. And it will be take huge market share. Zynga that saw this opportunities and jumped in on the burgeoning social gaming revolution is nipping at the industry’s heels. On the contrary, EA that saw this opportunities and jumped in on the burgeoning social gaming revolution is come to a halt.
And they seemed to have all the resources needed when they had their competitive advantage but Electronics Arts did not prepare themselves for the changes in the behavior of consumers and retailers or trends which is now causing them to loose their competitive advantage.
And the existing game of EA Is easy to emulate.
From these, we can have one conclusion. eventually, ea exemplifies the challenges of this industry, where customers are fickle and demanding and competition is intense. But after that, EA introduces digital platform and comes in second.
Next, we’ll have a perspective of resource-based view (RBV).
Before the ages of digital game , EA’s resource based view in the past was great.
They are just concentrated in making More than 100 titles games such as Battlefield, Madden NFL, FIFA Soccer, Rock Band, Need for Speed, and The Simpsons.
SNS contents like monthly fee, partial monetization, facebook and on line services like web games, various portal sites or distributed contents have captured more than 40% of the market. It is widespread across the console game market through out total game market. And it will be take huge market share. Zynga that saw this opportunities and jumped in on the burgeoning social gaming revolution is nipping at the industry’s heels. On the contrary, EA that saw this opportunities and jumped in on the burgeoning social gaming revolution is come to a halt.
And they seemed to have all the resources needed when they had their competitive advantage but Electronics Arts did not prepare themselves for the changes in the behavior of consumers and retailers or trends which is now causing them to loose their competitive advantage.
And the existing game of EA Is easy to emulate.
From these, we can have one conclusion. eventually, ea exemplifies the challenges of this industry, where customers are fickle and demanding and competition is intense. But after that, EA introduces digital platform and comes in second.