Team Case Critique

electronic Arts is an American based community it mainly markets and produces computer and video haltings. Its all-encompassingly recognized for recrudesceing intense sports games along with this it likewise produces a wide variety of different games for the consumers. come throughd it manufactures the games fulfilling the requirements of all the platforms that is it does non restrict its games for the usage of one platform sole(prenominal).It is a profitable and prosperous ships company, however in the demo days it is harm as there are some great concerns regarding its business. For this purpose the menu would advice the CEO that the company should bring a change in its strategies in order to thrive in such a competitive and demanding milieu the company should firstly think towards the creation of d makeloadable games of this forget non only increase the sales of its games but also reduce the follows of physically making the game, the handling and inventory of th e games.More to add electronic Art should contrive on establishing an online platform where games are available for beingness downloaded, although this go out cost the company some amount but the increase in tax income enhancement that leave behind be generated by the sale of the games online will be only worth the efforts. Additionally making small versions of the game will also be favorable for the company as converting the larger versions into mini versions does non require much additional resources.This counsel the games can easily be downloaded to wireless devices such as the mobile phones and I pods, which will be an added source of in sire for the company without incurring a great spile of added be. on that point is a price ceiling that exists in the game market of $59. 99 the platform manufactures do not wish to increase the price beyond that, these ease manufactures have great power to influence the prices. The only fashion Electronic Art can shatter this pric e delimit is by producing sophisticated and distinguished games.By offering product differentiation only will the manufactures be able to set their own prices for their product instead of being under pressure by the console manufacturers. For this purpose the company should boldness to towards attracting fresh and young talent and merge them with the experienced teams that have make the name of the popular games a huge success in the market. The companys statistics show that the top 100 games are responsible for 50 % of the sales for the company this means that the rest of the games for which money is spent on is simply wasted as it does not prove to be oval-fruited for the company.The company should adopt a strategy of producing limited games but doing a lot of research and development for the making of these games this as this will hold out to a greater possibility that these games will be a victor in the market. This will provide opportunities for the company to cut down its cost and use its resources more competently. We also agree with valuing the employees and develop strategies to retain the sharp and experienced personnel of the organization. As a result we should provide the employees with raise monetary and non monetary benefits.Profit sharing with the employees is a great idea as that will make the employees feel a part of the company and elevate them to use resources more wisely. Try to coordinate employees to work cooperatively and come up with out of the box ideas and strategies. In our opinion the company should not discontinue usage of celebrity endorsement to promote the games but to limit it as far as possible in order to check costs indoors a limit. Unnecessary and excessive celebrity endorsements should be avoided as this leads to increase the burden of costs for the company.To resolve the issue of the uplifted royal family fees charged by the console manufacturers EA should look in the lead with having negotiations with those companies. The companies should be told that Electronic Art is willing to pay for the royalty fees when a game is lucrative in the market but in those cases where the games are not doing well in the market the console manufacturers should not take royalty fees from those games as the dealing for those games would be mainly to recover the costs and placate at breakeven.Special incentives such as supplementary royalty fees should be provided to the console manufacturers if the games are unbeaten and are doing a flourishing business. This incentive will supporter to motivate the console manufacturers to agree to Electronic Arts offer. Starting off with small console manufacturer is a top-notchb idea as that enables to convince those manufacturers easily as they rely on Electronic Arts games.They should motivate the console manufacturers that by pursual our companys proposed recommendation regarding the royalty fees both of our companies will acquire together this way. The future strategies have to be based on big(a) costs but increasing revenue, but at the same quantify not compromising on the entertainment factor the games provide. The including of inbuilt advertisements within the game is a great source of revenue and also doesnt distract the attendance of the gamer.Advertisers are ready to market their products and services in such a manner as it is a fabulous way to subconsciously advertise a companys product and services. moreover the suggestion of providing opportunities for the improvement the characters online with a small amount of fee is instead impressive. As many gamers will be willing to enhance the ardour and functionalities of their characters and with a small amount of fee numerous customers will be wanting to avail this facility which will lead to increased revenue for the company.After the company attains substantial success and generates enough funds it should focus its attention on developing multiplayer games, as these games requir e a great deal of capital to be developed. Hence firstly the company should expand by all those means that do not call for a remarkable amount of excess funding then decease on to those projects that contend a great deal of investments. Moreover the company should think of implementing revolutionary(prenominal) major projects which include virtual poser when they have enough financing as these types of games also require ample of resources.Additionally in the long mellow the company could also work on coming up with its own platform, however this decision has to be taken quite carefully and watchfully as there is a risk of losing out the customers if this strategy proves to be unsuccessful. At present the companys strategy should be to capitalize on the sports section of the games in which the company is fine and move forward with the innovative and creative ideas that develop in the company that do not require a high level budget, later on it should move on to extensive pro jects when Electronic Arts has loads of funds to pose them.Summary Electronic Arts is a company that manufacture a wide variety of games for many console manufactures, online use and mobile phone devices. It specializes in the development of sports games . The company has its headquarters in America and it has been a heavyweight in the game business and has come up with several of super hit games for the industry. It is recognized for a company that comes up with creative ideas and innovative games by altering the graphics, animation, programming, etc.The company is facing certain issues at present ant the only way to get back again is to develop certain strategies and act on them as soon as possible. referable to increased restrictions from the console manufacturers the company should also focus its attention to provide games online and on mobile phones as these steps will enhance the prosperity of the company. Additionally Electronic Arts should come up with original and new g ames, those games will be differentiated and then Electronic Arts will have the opportunity to charge more on those games.This will help to diminish the price ceiling that exists in the market as Electronic Arts will be able to influence the price of the games. The company should try to negotiate with the other console manufacturers to remove the royalty charges case the game does not do well in the market. Furthermore, the company should look for further ways to increase the revenue and cut down costs for the company.Inbuilt advertisements within the games and providing gamers the opportunity to upgrade the characteristics of the characters with a small amount of charge, these manoeuvre will enable the company to generate added revenue. In the future when Electronic Arts has sufficient funds it should look towards emphasizing on multiplayer games and games with simulation effects. At present its strategy should be focused on increasing revenue while keeping costs within boundaries . Reference 1) Website www. ea. com project accessed 1 July 2008