Porter's Five Forces Applied to Electronic Arts

There are many people play video game, pc game, massively multiplayer online game and mobile game, the game industry is increasing. Because of technology, the game industry can develop more game which have high quality, and develop more generation of console.

According case 15, author talked about how game industry increases recently and what situations for game industry are. He also divided game industry for several segments, such as video game, pc game, massively multiplayer online game and mobile game. He also discussed how each segments is developed. Moreover, the author also describes Electronic Art’s situations in some parts, such as developing process, strategies, suppliers, distribution and competitors.

This paper will briefly to talk about element of Electronic of Arts, discuss about the global video game industry by five-force analysis, talk about SWOT analysis reveal about Electronic Arts’ situation, and explain what is Electronic Arts’ generic competitive strategies.

Everyone’s industry change very fast, video game industry is also. From 2000 to 2007, the size of video game market increase from $24 billion to $58 billion, new platform, such as Sony PS3, Microsoft Xbox 360, and Nintendo Wii had incorporated faster processing speeds, digital and high-definition graphics capability, and online connectivity. Those characteristics can attract consumer to buy game-playing device and new game. There are more and more people spend more time to play video game, in the United States, game players spent time playing video game more than watching TV and movies on DVDS. Moreover, the age of game players are increase. Moreover, because of new technology, high-definition graphics, online connectivity, extend of online game, pop...

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...ie industry.

EA create many games about movies, thus EA can gain many audiences who like to watch movies.

• Cellular handsets

Because cellular handsets are getting popular, EA concentrate in creating game for their consumers who have cellular handsets.

EA uses broad differentiation strategy to provide products which are different from it rival to its consumer.

In video game industry, its scale is increase. The numbers of consumers also increase. Although EA is a leader in video game industry, there are some many challenges that EA should face. There are some recommendations from my personal opinions for EA to improve performance.

• To use new technology in their product, to reduce game develop cost, to reduce process of developing games, to focus in how internet impact industry. to look for potential consumers, to sign up famous people for it advertisement,