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Sigaud environmental

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  1. 1. Page 1 An Environmental Analysis for Electronic Arts/EA Sports /FIFA18 Fernando Ortenblad Sigaud Full Sail University Project & Portfolio II: Business and Marketing 10/31/2017
  2. 2. Page 2 The STEEPLE Analysis (Citations required) SOCIOLOGICAL: Ignites the passion for football while playing the game. When you log in to FIFA18 by the first time you need to choose your favorite team, the one that you support or like most. This future is able to create connection between players from all over the world. Where you can find and team up with fans from your favorite football club and play together against others rival in a worldwide competition (acelerateideas.com, n.d). It creates several communities between players, according to the team they support, the region they are playing and the level they are inside the game. One of the future modes inside FIFA18 is called EA SPORTS Football Club, that connects the customer with Facebook, mobile and tables, where he can show his results to his friends and even to all FIFA community. FIFA18 manages to connect players with real soccer news and events. Where you are able to know recent result’s, and know how your team is doing in real life. TECHNOLOGICAL: FIFA main idea is to simulate soccer, at FIFA18 they introduce Real Player Motion Technology, a new system that innovates the gameplay of real players, more accurately through motion capture. Where several new animations show exactly how famous players like Cristiano Ronaldo or Neymar moves on the real pitch. Allowing customers to feel the life-like tendencies of the best football players in the world, having a unique experience while playing (easports.com, 2017). ECONOMIC: Over the past five years Electronic Arts stocks price increase in an extremely high pace, going from $12,89 per share on November 5, 2012, up to $112,73 per share on November 11, 2017. With an appreciation of 774,32% during this period (yahoofinance.com, 2017). According to Electronic Arts 2016 annual report, FIFA franchise represents 16 percent of the total revenue of the company. ECOLOGICAL: Electronic Arts are focused on reducing the carbon footprint. One of the tactics being used in recent years is to turn the company from a package goods business into a complete digital business. This attitude will significantly reduce the EA’s carbon footprint (ea.com,2017). Electronic Arts have taken several steps to reduce their energy consumption, especially at their global headquarters in California, where they utilize eco-friendly products and promoted recycling education to all their employees. Bringing awareness and sharing best practices across the company (ea.com, 2017).
  3. 3. Page 3 POLITICAL: According to EA.com, the company does not make direct political contributions to individual candidates, parties, and committees, but if they decide to do they will disclose their contribution on their website (ea.com,2017). LEGAL: To protect from customer lawsuits, Electronic Arts added inside their video games a term of use, where the customer and EA expressly waive the right to a trial by jury or to participate in a class action (Plunkett,2011). This prevents large of unhappy customers to unite together and take a unified stand against the company. The term of use appears only at the first time that the customer loads the game if the customers did not agree with the term of use the game will not load to next part. On 2014, Electronic Arts entered into a $40 million settlement with an NCAA’s Collegiate Licensing Corporation because of not paying the licensing fee to use player likenesses in their NCAA games (Investopedia.com, n.d). EA SPORTS FIFA has a different agreement with the FIFA Entity, but since the purpose is to create a realistic simulation of soccer games involving soccer teams, EA needs to take extreme care to avoid having new problems with former players or even teams. ETHICAL: In 2016, Electronic Arts launched inclusion EA, a global training inside the company focused on awareness, identification and committed action. Where leaders from different areas of the company delivered sessions to set expectations of leadership and create an inclusive work environment inside the company (diversityjournal.com, 2017). A great idea of engaging with their employee’s community. Electronic Arts have an established set of values that reflect the vision of the company. These values are the heart of the company code of conduct and are supported by the company policies (EA Global Code of Conduct, 2005). The company called the ACTION Values, that means Achievement, Customer Satisfaction, Teamwork, Integrity, Ownership, and Now that define EA ethical behaviors and how they do business.
  4. 4. Page 4 The SWOT Analysis (Citations optional) Provide at least three statements in each of the four sections of the SWOT chart: Strengths, Weaknesses, Opportunities and Threats. Include explanations and details within the chart that make your points clear. A phrase is not enough. Each point should be a short paragraph. HELPFUL HARMFUL INTERNAL STRENGTHS 1. FIFA 18 offers diverse games modes that manage to call attention of different customers, like “The journey” mode that was introduced in FIFA17 and now gain a new chapter, the Career mode returns with new changes, and the Ultimate Teammode that offers a great platform for competitive online play, where customers are able to hire their favorite soccer players and compete with gamers from all over the world. 2. Immersive atmospheres, with realistic players visual. Creating an authentic game that shows an accurate rendering of the match-day experience (easports.com, 2017). 3. FIFA is distributed in over 35 different countries worldwide and is available on several platforms, like PlayStation 4, PlayStation 3, Personal Computer, XBOX One, XBOX 360, Nintendo Switch, mobile, and tablets. Being enabled to attracts several types of customers. 4. FIFA18 are inside the EA SPORTS Division, responsible for 43% of Electronic Arts revenue. WEAKNESSES 1. Each FIFA series releases are tied into the begging of the European Soccer Season, where any problems with the production or the distribution of the game will jeopardize sales and makes their assets less profitable. 2. FIFA 18 depends on the success and availability of third parties’ platforms and hardware’s. Which limits their performance, design capabilities, and graphics. Making EA having high production costs to adopt FIFA to the hardware and platform developers (Market Line, 2017). 3. On FIFA18 you can create a player, but not a team, and inside the Ultimate Team, the customization to build your team is really poor. Konami Pro Evolution soccer, his greatest rival inside the soccer genre, has a much better teamcustomization where you can build your own t-shirt and select the sponsor your team is going to have for the next season.
  5. 5. Page 5 EXTERNAL OPPORTUNITIES 1. Virtual Reality FIFA mode, that immerse the customer inside a soccer stadium. Where they can run side by side with his famous player or favorite team. Making goals and celebrating like they were on the pitch. 2. With the current increase in online gaming and extra digital contents, Electronic Arts need to continue to create new features inside FIFA Ultimate Team(platform to compete online). According to gamesindustry.biz, FIFA Ultimate Team together with the Ultimate modes of Madden and NHL represents $650 million in annual revenue. Where half of that is generated by extra digital content (Handrahan, 2016). 3. Electronic Arts is famous for purchasing small studios to expand their gaming labels. These strategic acquisitions add new teams and several new intellectual properties to the company that is able to strengthen their distribution infrastructure around the world. THREATS 1. Mobile Gaming is the future and FIFA is already doing really well inside this sector, but they face an intensive competition especially by apps that are much easier to play like Angry Birds and Candy Crush. 2. Piracy and other forms of unauthorized copying. According to EA 2017 annual report, these are a big problem for them, especially in some countries which their products are not protected by laws or their legal protection are ineffective. This issue affects FIFA18 total revenue. 3. FIFA 18 are in an intensely competitive market, that changes rapidly as new platforms are introduced. Where their parent company faces a significant competition from companies like Activision Blizzard, Ubisoft and any other company that provides different sources of interactive entertainment (EA annual report, 2017). 4. Electronic Arts have faced several lawsuits in the past, that manage to decrease their reputation. In 2014, they paid about $ 40 million to an NCAA’s Collegiate Licensing Corporation because of not paying the licensing fee to use player likenesses in their NCAA franchise game.
  6. 6. Page 6 Conclusions: Electronic Arts nowadays are the leading global interactive entertainment software company (easports.com, 2017). Delivering for more than 35 countries, it is clear to understand that sports titles are an extremely successful within the company, where FIFA in 2016 represented 16% of their annual revenue. The recent release of FIFA18, with its immersive atmosphere, realistic players and a new diversity of game modes, such as the new Ultimate Team, shows that the company will have an increase in the 2017 sales revenue for the game, especially due to the increase in online gaming and the extra digital content. But if they want to continue on a higher pace in the coming years, Electronic Arts needs to create ideas and strategies to overcome the dependence of third-party hardware and platforms. EA Sports FIFA is inside an intensely competitive market, that change rapidly as new platforms are introduced (EA annual report, 2017), for this reason, and to continue to grow, it is necessary to introduce the game inside new platforms like Virtual Reality and even create a better mobile game that nowadays are becoming more important than pc gaming and are considered the future of the video games. FIFA is already inside and is doing really well with the FIFA Mobile but on a long run can lose market share for games like “Candy Crush” and “Angry Birds”, that are easier to learn and play. To conclude, Electronic Arts are on the right track with the EA Sports FIFA, always creating new contents and immersing the customers inside the stadiums, FIFA has a huge potential for the next years especially because of the Russia World Cup 2018, it is a great time to call new customers attention to enjoy the game. But they need to continue to take care on licensing fee to avoid lawsuits like happens a few years ago with a NCAA EA game, something that can jeopardize the image of the company and the game. The company needs to continue to purchase small studios that can add new ideas and intellectual properties to help games like FIFA increase their potential and market share over the countries.
  7. 7. Page 7 References: Aceleratedideas.com. (n.d). FIFA goes social with EA Sports Football Club. Retrieved from: http://www.accelerated-ideas.com/news/fifa-goes-social-with-ea-sports- football-club.aspx Diversityjournal.com. (n.d). Electronic Arts – Building an Inclusive Culture at EA and in the Gaming Community. Retrieved from: http://www.diversityjournal.com/16610-electronic-arts-building-an- inclusive-culture-at-ea-and-in-the-gaming-community/ Electronic Arts Global Code of Conduct. (2005). Retrieved from: https://secure.ethicspoint.com/domain/media/en/gui/8089/GlobalCodeofConductMarch2 005.pdf Easports.com. (2017). Environment. Retrieved from: https://www.ea.com/environment Easports.com. (2017). Political Activities Disclosure. Retrieved from: https://www.ea.com/politicalactivitiesdisclosure Easports.com. (2017). Real Player Motion Technology. Retrieved from: https://www.easports.com/fifa/features/real-player-motion-technology# Easports.com. (2017). Retrieved from: https://www.easports.com Ebscohost.com. (2014). Market Line SWOT analysis of Electronic Arts. Retrieved from: http://web.a.ebscohost.com.oclc.fullsail.edu:81/ehost/pdfviewer/pdfviewer?vid=23&sid= 949c2276-b2d9-46d3-8575-4b6be358c36c%40sessionmgr4007 Handrahan,M. (2016). EA’s Ultimate Team earning around $650 million a year. Retrieved from: http://www.gamesindustry.biz/articles/2016-03-02-eas-ultimate-team- earning-around-usd650-million-a-year Investopedia. (2016). Electronic Arts Loses Its “Madden NFL” Lawsuit. Retrieved from: http://www.investopedia.com/stock-analysis/032216/electronic-arts- loses-its-madden-nfl-lawsuit-ea-atvi.aspx
  8. 8. Page 8 Plunkett,L. (2011). Remember, Electronic Arts won’t let you sue them either. Retrieved from: https://kotaku.com/5843178/remember-electronic-arts-wont-let-you-sue- them-either Yahoo Finance. (2017). Electronic Arts Chart. Retrieved from: https://finance.yahoo.com/quote/EA/chart?p=EA

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