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Electronic Arts

Germany and USA

Author: Nikita Vasiljev

Riga 2021
Introduction

• an American video game company


• founded on May 27, 1982
• more than 300 million registered players around the
world
• mostly 15-44 aged

Founded by Trip Hawkins 2


History
EA published numerous games and productivity
software for personal computers and later
experimented on techniques to internally develop
games, leading to the 1987 release of Skate or Die!.
They launched their rise in the 1990s with sports
properties such as Madden and FIFA and publishing
The Sims series. Through the 2000s, they became
known for their aggressive acquisitions. Now, EA is
one of the largest brands with exclusive licenses with
the NFL, Star Wars and the UFC.
Mission and Objectives
“We're building a company that thinks about the player
experience at every step”

• Think Players First


• Create Quality and Innovation
• Act with Integrity
• Be Accountable
• Learn and Grow
4
Current Market Situation
• The global video game market size was valued at USD 180
billion in 2021 and is expected to grow

• The availability of different genres of games such as action,


role play, simulation, and strategy is anticipated to attract the
customers

• Growing popularity of eSports tournaments and the increasing


number of professional gamers are anticipated to increase
sales of video games and accessories

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Product Review

Most popular products and sales:


• Madden NFL - 100 million
• FIFA - 250 milion
• The Sims - 200 million
• Need for Speed - 150 million
• Battlefield - 67 million

FIFA 22 costs 59.99 EUR in the GER


and 59.99 USD in the US 6
Organizational Structure
ON FORBES
Target Market
The average age for a consumer of EA is 18-34. The
consumers that buy their products are mostly sports
fanatics and know the game and all of the rules
Biggest Gaming Markets
NET REVENUE
(BLUE NORTH AMERICA, DARK ROW)
Competitors
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Distribution
• Usually customers gain information via social media
• The most popular gaming companies are Electronic Arts,
Activision Blizzard and Sony
• Now almost all people shop online and buy digital
versions.
• Mostly people under 25 play video games every day.
• Before pandemic people bought less video games
• Most popular genres: sports, action, adventure
• People became more price-sensitive 13
Market capitalization of the
largest gaming companies
(as of November 2021 (bn))
SWOT Analysis
ELECTRONIC ARTS GERMANY
(GMBH)

Electronic Arts GmbH is located in Köln, Nordrhein-


Westfalen, Germany and is part of the Professional and
Commercial Equipment and Supplies Merchant
Wholesalers Industry. Electronic Arts GmbH has 96
employees at this location and generates $99.50 million
in sales (USD). There are 98 companies in the Electronic
Arts GmbH corporate family.
Cooperation Between US And
GER Offices
• Germans focus more on analyzing the problem than
Americans. Americans prefer to focus on brainstorming
solutions to a problem. Cooperation can be an effective
tool for creating, adapting, transferring and sharing
knowledge and experiences.
• So different problem solving and minds from other
countries help EA to create new ideas and opportunities.
And also improve their customers relationships due to
faster service.
The Burden of Taxation in the United
States and Germany

Germany min wage – 1500eur


USA min wage – 1000 eur
CONCLUSIONS
• The company is currently firing showing steady growth
in sales and customers.
• Covid 19 had a very positive influence on the company.
• Aside from the video games that they release worldwide,
EA also owns and operates various gaming studios in
different parts of the world (like in Germany)
• So many video game creators and publishers are
located around the world what creates more creativity,
faster service and better problem solving
• In USA it is more convenient doing business so the main
location of Electronic Arts is Florida. As well USA brings
almost half of revenue to company.
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