Report dallasBuyersClub

Strategic Audit Report
Electronic Arts
Inha University in Tashkent
School of Logistics,
May, 2021
Course Name: Business Strategy
Professor’s name: Azizbek Marakhimov
Section: 03
Ten Janna U1911113

Abdurashidov Abdulvokhid U1911116
Bekchanova Aziza U1911118
Kamolova Khilola U1911125
TABLE OF CONTENTS
I. CURRENT SITUATION ...................................................................................................................................... 3

1 – 2. Current Performance and Strategic Posture ........................................................................................ 3
II. CORPORATE GOVERNANCE ........................................................................................................................ 5
3 - 4. Board of Directors and Management ..................................................................................................... 5
III. EXTERNAL ENVIRONMENT: OPPORTUNITIES AND THREATS ........................................................16
5. Societal Environment ...................................................................................................................................16
6. Task Environment .........................................................................................................................................22
7. Summary of External Factors .....................................................................................................................27
IV. INTERNAL ENVIRONMENT: STRENGTHS AND WEAKNESSES ........................................................28
8. Corporate Structure ......................................................................................................................................28
9. Corporate Culture .........................................................................................................................................29
10. Corporate Resources .................................................................................................................................30
a) Marketing ...................................................................................................................................................30
b) Finance .......................................................................................................................................................33
c) Research and Development (R&D)........................................................................................................36
d) Operations and Logistics .........................................................................................................................37
e) Human Resources Management (HRM) ...............................................................................................39
f) Information Systems (IS) ..........................................................................................................................41
11. Summary of Internal Factors.....................................................................................................................42
V. ANALYSIS OF STRATEGIC FACTORS (SWOT) .......................................................................................43
12. Situational Analysis ....................................................................................................................................43
13. Review of Mission and Objectives ...........................................................................................................43
VI. STRATEGIC ALTERNATIVES AND RECOMMENDED STRATEGY ....................................................45
14. Strategic Alternatives .................................................................................................................................45
15. Recommended strategy.............................................................................................................................51
VII. CONCLUSION ................................................................................................................................................53
REFERENCES ......................................................................................................................................................54
2
I. CURRENT SITUATION
1 – 2. Current Performance and Strategic Posture
According to (Schatz, 2020), Electronic Arts Inc. (NASDAQ: EA) founded in 1982 to this day maintains a
leading position in the market despite the increased competition since the founding of the company. The
company's new office is located in Redwood City, California. The company made its first big profits and
publishers in the early 2000s, with annual revenues of 1.5 billion in 2002 and over 2.5 million by the end
of fiscal 2003. In fiscal 2019 and 2020, the company posted revenues of $ 5.5 billion and $ 4.97 billion,
respectively. The company has also received over 700 numerous prestigious awards since its founding
in both the US and Europe.
According to ("Electronic Arts Inc. 2020 Annual report", 2021), the aim of EA is to develop fantastic
service-oriented games and content for a global audience. The portfolio's breadth and scope, as well as
the real-time services provided and the use of various business models and distribution channels, provide
competitive advantages. These advantages include the potential to draw more players across more
distribution platforms and geographic areas, as well as consistent revenue streams from annual sports
franchises (for example, FIFA, Madden NFL), console, PC, and smartphone catalogs (for example,
games not released in the current fiscal year), and live services. Amazing games and entertainment that
is dependent on a service. The cornerstone is a collection of intellectual property that is used to create
groundbreaking games and content that fosters long-term relationships with players, developers, and
viewers. Battlefield, The Sims, Apex Legends, Need for Speed, and Plants vs. Zombies are among the
products in the portfolio that are either entirely owned by EA Sports (such as Battlefield, The Sims, Apex
Legends, Need for Speed, and Plants vs. Zombies) or licensed by others (such as FIFA, Madden NFL,
and Star Wars). That business creates and distributes games and services across a wide range of genres,
including sports, first-person shooters, action, role-playing games, and simulation. They've expanded the
company's portfolio in recent years, releasing Star Wars Jedi: Fallen Order, a single-player adventure
game set in the Star Wars universe, and Apex Legends, the first free console game, as well as expanding
player experiences with The Sims 4. The portfolio's depth is illustrated by offering players a variety of
genres and franchises to choose from. The FIFA (soccer), Madden NFL (American football), NHL (ice
hockey), and UFC (ultimate fighting) franchises, for example, are all part of the sports portfolio. Inside
the franchises, the corporation innovates by offering a variety of game modalities tailored to the various
motives of the players. In FIFA 20, for example, players can engage with FIFA Ultimate Team, which is
designed for players who are inspired by competitiveness and self-improvement, and VOLTA
FOOTBALL, which is designed for players who play on social media, in addition to the professional base
soccer simulation game. And the ability to express oneself FIFA is our most successful and widely played
title, and the console and PC game is consistently one of the best-selling titles on the market year after
year. About 12% of our total net sales for 2020, around 14% of our overall net revenue in 2019 and about
11% of our overall net revenues for fiscal year 2019 represented net revenues of FIFA 20, FIFA 19 and
FIFA 18. 2018 and 2018. EA Sports is committed to expanding and broadening its portfolio by engaging
3
in emerging brands, developing and creating gaming products and creating the contents that we deliver
to the market.
Significant Relationships
• Microsoft and Sony
Microsoft is allowed to manufacture and sell disk and downloadable gaming products and services
consistent with PlayStation and Xbox consoles, in compliance with Electronic Art arrangements
concluded with Sony Computer Entertainment Inc. and its affiliates and Microsoft and its affiliates and
their affiliates. They have a non-exclusive right to use the technologies they own or are permitted to
publish games in their respective consoles for a limited time and region, in compliance with these
Agreements with Sony and Microsoft. Console producers pay the selling price or a share of the royalty
for goods and services provided digitally on their revenues from the selling of the products and services.
Special buy orders shall be approved individually by Sony or Microsoft (or its specified replicators) as the
case may be. The corporation pays a fee to console producers for each manufactured unit for packaged
products. Many of our main business words, such as terms of production, shipping dates, policies and
approvals, are arbitrarily defined and subject to changes by manufacturers of consoles.
• App Stores from Apple, Google, and Others.
Electronic Arts has arrangements in place with Apple and Google to sell their smartphone apps and
additional content. Third-party application storefronts are used to import applications for mobile devices.
Consumers are charged with material downloaded inside the program, or they are charged a one-time
fee to use the product. The sums held by the seller and the amounts transferred on to us are determined
by distribution agreements. Usually, these agreements can be terminated at any time. The distributors
are not required to sell or deliver any of our applications under the terms of the agreements.
• Asia's Publishing Partners.
Tencent Holdings Limited and Nexon Co., Ltd. or their respective affiliates have entered into agreements
with EA to launch tablet and PC free-to-play games in some Asian territories, including China and Korea.
Players order extra material from the publishers' online storefronts and are paid for it within our game
setting. The sums held by the publisher and the amounts transferred on to us are usually established in
the agreements.
Competition
The digital entertainment industry is fiercely competitive, and new products, business models, and
distribution platforms evolve at a rapid pace. For the right to use such intellectual property used in the
goods, the business is up against competition. A company's reputation depends on its ability to predict,
often years ahead of time, how goods and services can perform in the marketplace. Activision Blizzard,
Take-Two Interactive, Ubisoft, Bethesda, Epic Gaming, NetEase, Tencent, Sony, Microsoft, and
4
Nintendo are among the businesses that compete with Electronic Arts in the production of games and
services for computers, PCs, and handheld devices. Furthermore, bigger, well-funded tech giants such
as Google, Apple, and Amazon are pushing gaming projects that compete with EA Sports. More generally,
the group competes with distributors of different forms of content that players can consume in their free
time, such as movies, television, social media, casual web entertainment, and music. The ability to recruit
innovative and technological talent, game content and ease of use, innovation, product compatibility with
some consoles and other delivery platforms, brand recognition, popularity, durability, protection,
ingenuity, price, promotion, and the quality of customer service are all important strategic factors in the
gaming and entertainment industry.
II. CORPORATE GOVERNANCE

3 - 4. Board of Directors and Management
• Internal Directors and Management
Lawrence Probst (Chairman)
According to ("Larry Probst - Wikipedia", 2021), Lawrence Francis Probst III (born June 3, 1950) is an
American businessman who is best known for his work with the video game publisher Electronic Arts,
including acting as CEO from 1991 until 2007 and as executive chairman from 2013–14. He remains
chairman of EA and served as chairman of the United States Olympic Committee until 2019. Probst was
born on July 6, 1950. He is the son of Ruth (née Gallagher) and Lawrence Francis Probst II. He and his
wife Nancy have two sons. He earned a bachelor's degree from the University of Delaware. Probst
worked for Johnson & Johnson and Clorox before being recruited into the video game industry through
Activision in 1982. Two years later he joined EA as vice president for sales until 1986. He then took on
the role of the company's senior vice president of the publishing division from 1986–90. He was promoted
to president of Electronic Arts in 1990, remaining in that position until 1997. During this time, he was also
pronounced CEO of Electronic Arts in 1991, which he held onto until April 2007. Next Generation named
his one of the "75 Most Important People in the Games Industry of 1995", remarking that "Probst may
not be as colorful a character as his predecessor [ Trip Hawkins, but he does seem adept at combining
the freedom and daring of creativity with the restraints and common sense of a commercial operation."
When president and chief operating officer John Riccitiello resigned in April 2004, Probst became his
successor. Riccitiello was re-hired as CEO in 2007, he retained his non-operational duties as chairman.
He then worked as executive chairman of Electronic Arts Inc. from March 18, 2013, to January 1, 2015,
and former chief executive officer of the company. According to EA's 2005 Annual Report, Probst is the
biggest individual shareholder in EA, owning 739,761 shares and the right to acquire a further 3.1 million,
which combined accounts for 1.2 percent of the company. Probst sits on the boards of two cancer
research groups: The V Foundation and ABC2. In addition to his work at Electronic Arts, Probst also
served as the chairman of Digital Entertainment Corporation of America. In 2008, he was made the U.S.
5
Olympic Committee chairman of the board. Five years after his appointment as chairman of the USOC,
Probst was elected as an IOC member at the 125th IOC Session in Buenos Aires in September 2013.
Probst worked with many other IOC groups as well. Probst has served on the IOC International Relations
and the IOC Radio and Television Commissions. He assumed the position of chair of the IOC Press
Commission in 2014. At the end of 2018 Probst ceased to be a member of the IOC.
According to ("Electronic Arts Inc. - Corporate Governance - Board of Directors", 2021), Mr. Probst has
been our Chairman of the Board of Directors since July 1994. He was employed by EA from 1984 to
2008, as well as from March 2013 until December 2014, serving as our Chief Executive Officer from 1991
until 2007 and as our interim Chief Executive Officer from March 2013 until September 2013. Mr. Probst
served as the Chairman of the board of directors of the U.S. Olympic Committee from 2008 to 2018 and
was a member of the International Olympic Committee from 2013 to 2018. Mr. Probst has served as a
director of Blackhawk Network Holdings, Inc. during the past five years. Mr. Probst holds a B.S. degree
from the University of Delaware.
According to ("Lawrence Probst - Biography", 2021), currently, Lawrence F. Probst holds the position of
Chairman of Electronic Arts, Inc. and Chairman at Electronic Arts (Canada), Inc. (a subsidiary of
Electronic Arts, Inc.). Mr. Probst is also on the board of The V Foundation for Cancer Research,
Accelerate Brain Cancer Cure, Inc. and Digital Entertainment Corp. of America. In the past Mr. Probst
was Member of International Olympic Committee, Manager-National Accounts at The Clorox Co., and
Manager-National Sales at Activision, Inc. and Chairman& President at United States Olympic
Committee. Mr. Probst received an undergraduate degree from the University of Delaware.
Current positions of Lawrence Probst

Name Title Since
Electronic Arts Inc. Chairman 2015

(Software)
Electronic Arts (Canada), Inc. Chairman -
The V Foundation for Cancer Research Director -
Accelerate Brain Cancer Cure, Inc. Director -
Digital Entertainment Corp. of America Director -
Holdings of Lawrence Probst
Name Equities % Valuation
Electronic Arts Inc. (EA) 485,898 0.17% 65,776,012 USD

(Software)
Source: ("Lawrence Probst - Biography", 2021)
Andrew Wilson (Chief Executive Officer& Director)
According to ("Andrew Wilson (businessman) - Wikipedia", 2021), Andrew Wilson (born 7 September
1974) is an Australian businessman who has been the CEO of Electronic Arts (EA) since September
2013. On 18 September 2017, he was elected as a director of Intel. Born in Geelong, Australia, Wilson
6
joined EA in 2000, and worked in the company's Asian and European markets for several years before
moving to EA Sports and then becoming an Executive Producer on the FIFA franchise. In August 2011
he was appointed Executive Vice President of EA Sports, and he also took on duties as Executive Vice
President of the company's Origin platform in April 2013.
Mr. Andrew P. Wilson is a Senior Analyst & Dealer at Ethical Partners Funds Management Pty Ltd., an
Independent Director at Intel Corp., a Partner at Aurora Capital Group LP and a Chief Executive Officer&
Director at Electronic Arts, Inc. He is on the Board of Directors at Intel Corp. and Electronic Arts, Inc. He
has over 12 years of experience in Australian financial markets on both the buy side and sell side. Mr.
Wilson worked at Bank of America Merrill Lynch in their Equities division and prior to that, he worked at
Ord Minnett in their Emerging Companies team. He previously spent time working on the buy side at 452
Capital where he was in charge of dealing. Andrew has been involved with various fund-raising efforts
and has a passion for charitable work. Mr. Wilson was employed as an Executive Vice President by EA
Sports and a Chairman by WSL Holdings, Inc.
According to ("Andrew Wilson", 2021), he received his undergraduate degree from Princeton University.
Six months after the resignation of John Riccitiello, Wilson was chosen to be the new CEO of the
company on 17 September 2013. In a blog post on EA's website, Wilson said that he was "deeply
honored and humbled" to take up the job, and said he envisioned EA as "the world's greatest games
company." In recent years, he has been under fire for promoting micro transactions in EA's video games.
Andrew Wilson was elected to Intel’s board of directors as an independent director in September 2017.
Wilson is the chief executive officer of Electronic Arts Inc. (“EA”), a global leader in digital interactive
entertainment. Wilson joined EA in May 2000 and has served as the company’s chief executive officer
and a director of EA since September 2013. During his tenure as CEO, EA has launched ground breaking
new games and services, reached record player engagement levels across its global franchises, and
transformed into one of the world’s leading digital entertainment companies. Prior to his appointment as
CEO, Wilson held several leadership positions at EA, including executive vice president of EA SPORTS.
Wilson also serves as chairman of the board for the World Surf League.
Current positions of Andrew Wilson

Name Title Since
Intel Corporation Independent Director 2017

(Semiconductors)
Electronic Arts Inc. Chief Executive Officer & Director 2013

(Software)
The Paley Center for Media Trustee 2020
Aurora Management Partners LLC Partner 2008
Ethical Partners Funds Management Pty Ltd. Senior Analyst & Dealer 2018
Holdings of Andrew Wilson

(Software)
7
Intel Corporation (INTC) 2,830 0.0001% 181,120 USD
(Semiconductors)
Source: ("Andrew Wilson - Biography", 2021)
Kenneth Moss (Chief Technology Officer)
According to ("Electronic Arts Inc. - Corporate Governance - Board of Directors - Person Details", 2021),
Ken Moss is the Chief Technology Officer of EA, leading the strategy and vision behind EA’s Digital
Platform, Frostbite Engine and Information Technology organizations. In this role, he oversees
mechanisms to ensure the most seamless experience for players, including Identity & Fraud, Security,
Data, Games Services, Infrastructure, Mobile Platform and the Frostbite Engine to drive the future of the
gameplay experience. Prior to joining EA in 2014, Ken led the global Marketplace Technology, Science
and Data organization at eBay where he ran the global end-to-end services platform that powers eBay
across all devices. Before his time at eBay, Ken spent 20 years at Microsoft, where he founded and led
the engineering and product teams on Search and held roles with MSN and Microsoft Excel. Ken holds
a bachelor’s degree from Princeton University and is a lifelong gamer.
According to ("Kenneth Moss - Biography", 2021), Kenneth Moss founded CrowdEye, Inc. Presently, Mr.
Moss is Chief Technology Officer at Electronic Arts, Inc. In the past Mr. Moss was Chief Executive Officer
of CrowdEye, Inc., VP-Marketplace Technology & Data organization at eBay, Inc. and Development
Director at Microsoft Corp.
Current positions of Kenneth Moss

Name Title Since
Electronic Arts Inc. Chief Technology Officer 2014

(Software)
Holdings of Kenneth Moss

(Software)
Source: ("Kenneth Moss - Biography", 2021)
Blake Jorgensen (Chief Operating & Financial Officer)
According to ("Blake Jorgensen - Biography", 2021), founder of Thomas Weisel Partners Group, Inc.,
Blake J. Jorgensen currently is Chief Operating & Financial Officer of Electronic Arts, Inc. In his past
career he was Chief Financial Officer & Executive Vice President at Levi Strauss & Co., Management
Consultant at The MAC Group, Inc., COO & Co-Director-Investment Banking at Thomas Weisel Partners
Group, Inc., Chief Financial Officer for Yahoo!, Inc., Management Consultant at Marakon Associates, Inc.
and Managing Director at Montgomery Securities, Inc. Mr. Jorgensen received an undergraduate degree
from Stanford University and an MBA from Harvard Business School.
8
According to ("Electronic Arts Executives - Official EA Site", 2021), Mr. Jorgensen joined EA in 2012 with
over 20 years of experience in finance spanning across different industries, with a deep understanding
of technology, consumer products, online commerce and entertainment. Prior to joining EA, Mr.
Jorgensen served as Executive Vice President and Chief Financial Officer of Levi Strauss & Co.
Previously, Mr. Jorgensen was Chief Financial Officer of Yahoo! Inc., from June 2007 to June 2009.
Before joining Yahoo! Inc., Mr. Jorgensen was the Chief Operating Officer and Co-Director of Investment
Banking at Thomas Weisel Partners, which he co-founded in 1998. He has also held financial and
operational positions at Montgomery Securities, MAC Group/Gemini Consulting and Marakon Associates.
Mr. Jorgensen holds a degree in Economics from Stanford and an MBA from the Harvard Business
School. He and his wife Debbie live in the San Francisco Bay Area.
Current positions of Blake Jorgensen

Name Title Since
Electronic Arts Inc. Chief Operating & Financial Officer 2018

(Software)
Holdings of Blake Jorgensen

(Software)
Source: ("Blake Jorgensen - Biography", 2021)
• External directors
Luis Antonio Ubiñas (Lead Independent Director)
According to ("Luis Ubiñas - Wikipedia", 2021), Luis Antonio Ubiñas (born 1963) is an American investor,
businessman and nonprofit leader. He served as the president of the Ford Foundation from 2008 through
2013. Prior to joining the Ford Foundation, he had an 18-year career as a senior partner at McKinsey &
Company. He is currently on the board of several public and private corporations, including Electronic
Arts, where he is Lead Director and chair of the Nominating and Governance Committee, and Boston
Private Bank and Tanger. He also serves on the boards of several private companies, including Aura
Financial, Ebsco and GFR Media. Last, he is a trustee of the Mercer Funds. In the nonprofit sector, he
served as president of the Board of Trustees of the Pan American Development Foundation from 2015
to 2019, serves as an Advisory Committee member for the United Nations Fund for International
Partnerships, is Chairman of the Statue of Liberty-Ellis Island Foundation and serves on the Executive
Committee of the New York Public Library. He is also active in the arts as a collector, donor and board
member. Ubiñas spent eighteen years at McKinsey & Company as a consultant in the areas of
telecommunications, technology and media. He helped found the Media Practice at McKinsey, where as
a Senior Partner he led the Practice on the West Coast; his work centered on the introduction and
development of the underlying technologies and applications of internet technologies, both wired and
9
wireless. Ubiñas also served as president of the Ford Foundation for six years. He is now an investor
and entrepreneur.
Luis Antonio Ubiñas is Chairman for The Pan-American Development Foundation and Member of Council
on Foreign Relations, Inc. and on the board of 13 other companies. He previously occupied the position
of Managing Director-West Coast Media Practice at McKinsey & Co., Inc., Reporter at Los Angeles Times
Communications LLC, Reporter at The Wall Street Journal, Inc. and President at Ford Foundation. Mr.
Ubiñas received an undergraduate degree from Harvard College and an MBA from Harvard Business
School. Ubiñas is Chairman of the Statue of Liberty-Ellis Island Foundation and the New York Public
Library, where he is a member of the Executive Committee and Chair of the Finance Committee. He
serves as an Advisory Committee Member for the United Nations Fund for International Partnerships
which oversees the United Nations' relationships with non-governmental partners, where he is in his
fourth term, appointed by two Secretaries General. He has also served on the Advisory Committee for
Trade Policy and Negotiation, the Advisory Committee for the Export-Import Bank of the United States,
and as Northwest Regional Chair for White House Fellows. He has held top-secret national security
clearance. In the private sector, Ubiñas is a board member of Aura Financial, which provides ethical
credit to unbanked communities; GFR Media, the largest media company in Puerto Rico; and EBSCO
industries, the leading provider of full text academic content to libraries, universities and private sector
entities. He is a Lead Director at Electronic Arts and serves on the Boards of two other public companies:
Boston Private Bank, the wealth management firm, and Tanger, the real estate investment trust. He is
also a Trustee of the Mercer Funds.
Current positions of Luis Antonio Ubiñas

Name Title Since
Electronic Arts Inc. Lead Independent Director 2015

(Software)
Tanger Factory Outlet Centers, Inc. Independent Director 2019

(Commercial REITs)
Boston Private Financial Holdings, Inc. Independent Director 2017

(Banks)
FirstMark Horizon Acquisition Corp. Independent Director 2020

(Investment Holding Companies)
The Pan-American Development Foundation Chairman 2014
Tanger Properties LP Trustee -
Boston Private Bank & Trust Co. Director 2017
Mercer Funds Trustee 2019
Aura Financial Corp. Director 2019
The New York Public Library Trustee 2010
United Nations Fund for International Partnerships Trustee 2013
The Statue of Liberty-Ellis Island Foundation Vice Chairman 2015
Collegiate School, Inc. Director -
10
Council on Foreign Relations, Inc. Member 2011
Holdings of Luis Antonio Ubiñas
Tanger Factory Outlet Centers, Inc. (SKT) 24,187 0.026% 365,949 USD
(Commercial REITs)
FirstMark Horizon Acquisition Corp. 30,000 0.29% 315,600 USD
Boston Private Financial Holdings, Inc. (BPFH) 19,658 0.024% 261,845 USD
(Banks)
Electronic Arts Inc. (EA) 0 0.0000% 0 USD

(Software)
Source: ("Luis Antonio Ubinas - Biography", 2021)
Leonard S. Coleman (Independent Director)
According to ("Leonard S. Coleman Jr. - Wikipedia", 2021) and ("Ebony", 2021), Leonard S. Coleman is
a businessperson who has been at the head of 6 different companies is Managing Director at
Metropolitan Opera Association, Inc. and Member of State of New Jersey and on the board of 11 other
companies. In the past he occupied the position of Independent Director at Avis Budget Group, Inc.,
Chairman at New Jersey Housing & Mortgage Finance Agency, Chairman at New Jersey Meadowlands
Commission, President of The National League of Professional Baseball Clubs, Member of New Jersey
Economic Development Authority (United States), President-National League at Major League Baseball
Blue, Inc., Member of Economic Development Authority of Western Nevada, Chairman at ARENACO,
Inc., Commissioner of US Department of Energy (District of Columbia) and Commissioner of New Jersey
Department of Community Affairs. Mr. Coleman received an undergraduate degree from Princeton
University and a graduate degree from Harvard University.
Also, he is the Member of Nominating and Governance Committee and Member of the Compensation
Committee.
Current positions of Leonard S. Coleman

Name Title Since
Electronic Arts Inc. Independent Director 2001

(Software)
Hess Corporation Independent Director 2016

(Oil & Gas Exploration and Production)
Omnicom Group Inc. Lead Independent Director 2015

(Advertising & Marketing)
Santander Consumer USA Holdings Inc. Independent Director 2021

(Consumer Lending)
Radio Unica Communications Corp. Director -
Metropolitan Opera Association, Inc. Managing Director 2010
Horizon Healthcare Services, Inc. Director -
11
Jackie Robinson Foundation Chairman-Emeritus -
Spoleto Festival USA Director -
Waterloo Village Director -
Urban America LLC Director -
The Schumann Fund for New Jersey Director -
State of New Jersey Member -
Holdings of Leonard S. Coleman

(Software)
Omnicom Group Inc. (OMC) 33,663 0.016% 2,496,111 USD

(Advertising & Marketing)
Hess Corporation (HES) 17,033 0.0055% 1,205,255 USD

(Oil & Gas Exploration and Production)
Source: ("Business Leaders and top investors hot news", 2021)
Jay C. Hoag (Independent Director)
According to ("Jay Crandall Hoag - Biography", 2021), Mr. Jay C. Hoag is a Chairman at TCV Acquisition
Corp., an Independent Director at Peloton Interactive, Inc., an Independent Director at TripAdvisor, Inc.,
an Independent Director at Electronic Arts, Inc., an Independent Director at Zillow Group, Inc., a Lead
Independent Director at Netflix, Inc., a Founding General Partner at TCMI, Inc., a Founding General
Partner at TCMI Inc. and a Member at Orange Investor GP LLC. He is on the Board of Directors at
Peloton Interactive, Inc., TripAdvisor, Inc., Electronic Arts, Inc., Zillow Group, Inc., Netflix, Inc., Prodege
LLC, Technology Crossover Management VII LP, Technology Crossover Management VII Ltd.,
Technology Crossover Management VIII LP, Technology Crossover Management VIII Ltd., Hoag Family
Trust, Menlo School, Northwestern University and Vanderbilt University. Mr. Hoag was previously
employed as a Lead Independent Director by TechTarget, Inc. and a Managing Director by Chancellor
Capital Management, Inc. He also served on the board at TheStreet.com, Inc., Altiris, Inc., Expedia, Inc.,
eLoyalty Corp., eHarmony, Inc., Fandango Media LLC, InPhonic, Inc., R.J. O'Brien & Associates LLC,
Stride, Inc., VICE Media LLC and XRS Corp. He received his undergraduate degree from Northwestern
University and an MBA from the University of Michigan.
Current positions of Jay Crandall Hoag

Name Title Since
Netflix, Inc. Lead Independent Director -

(Internet Services)

(Software)
Zillow Group, Inc. Independent Director 2005

(Real Estate Services)
12
Peloton Interactive, Inc. Independent Director 2018
(Recreational Products)
TripAdvisor, Inc. Independent Director 2018

(Leisure & Recreation)
TCV Acquisition Corp. Chairman 2021

(Investment Holding Companies)
TCMI Inc. (Investment Management) Founding General Partner 1995
Technology Crossover Management VII LP Director -
Technology Crossover Management VII Ltd. Director -
Vanderbilt University Trustee -
Northwestern University Trustee -
Menlo School Trustee -
Prodege LLC Director -
Technology Crossover Management VIII Ltd. Director -
Technology Crossover Management VIII LP Director -
Hoag Family Trust Trustee -
Orange Investor GP LLC Member -
TCMI, Inc. Founding General Partner 2011
Holdings of Jay Crandall Hoag
Alarm.com Holdings, Inc. (ALRM) 537,298 1.08% 46,411,801 USD

(Software)

(Software)
Zillow Group, Inc. (Z) 58,098 0.034% 7,531,825 USD

Zillow Group, Inc. (ZG) 29,049 0.048% 3,816,458 USD

TripAdvisor, Inc. (TRIP) 21,151 0.017% 1,137,712 USD

(Leisure & Recreation)
Netflix, Inc. (NFLX) 0 0.0000% 0 USD

(Internet Services)
Peloton Interactive, Inc. (PTON) 0 0.0000% 0 USD

(Recreational Products)
Source: ("Jay Crandall Hoag - Biography", 2021)
Richard A. Simonson (Independent Director)
According to ("Richard A. Simonson - Biography", 2021), Richard A. Simonson holds the position of
Chairman of Lyle School of Engineering. Mr. Simonson is also on the board of Electronic Arts, Inc., Sabre
Holdings Corp., Couchbase, Inc. and SoftHotel, Inc. and Managing Partner at Specie Mesa LLC. He
previously occupied the position of Chief Financial Officer & Executive Vice President for Nokia Oyj Chief
Financial Officer & Executive Vice President for Here Holding Corp. and Executive Vice President &
13
General Manager at Nokia Mobile Phones, Inc. (Tampa) (both are subsidiaries of Nokia Oyj), Chief
Financial Officer & Executive Vice President of Sabre Corp. and Chief Financial Officer & Director at
Sabre GLBL, Inc. (a subsidiary of Sabre Corp.), CFO & President-Business Operations at Deem, Inc.,
Managing Director at Banc of America Securities LLC and MD-Telecom & Media Investment Banking
Group at Barclays Capital, Inc. Richard A. Simonson received an undergraduate degree from Colorado
School of Mines and an MBA from The Wharton School of the University of Pennsylvania.
Current positions of Richard A. Simonson

Name Title Since

(Software)
Sabre Holdings Corp. Director & Executive Vice President -
Couchbase, Inc. Independent Director -
SoftHotel, Inc. Director -
Lyle School of Engineering Chairman -
Specie Mesa LLC Managing Partner 2018
Holdings of Richard A. Simonson

(Software)
Source: ("Richard A. Simonson - Biography", 2021)
Jeffrey T. Huber (Independent Director)
According to ("Jeffrey T. Huber - Biography", 2021), Jeffrey T. Huber founded GRAIL, Inc.
He is on the board of Electronic Arts, Inc. and 4 other companies. In the past he occupied the position of
Vice President-Architecture & Systems Development at eBay, Inc., Advisor at Blue Horizon Equity LLC,
Senior Vice President of Alphabet, Inc. and Director & Senior Vice President at Google LLC (a subsidiary
of Alphabet, Inc.) and Senior Vice President-Engineering at Excite@Home Corp. Jeffrey T. Huber
received an undergraduate degree from the University of Illinois and an MBA from Harvard Business
School.
Current positions of Jeffrey T. Huber

Name Title Since

(Software)
Weta Digital Ltd. Director 2020
Genalyte, Inc. Director -
GRAIL, Inc. Vice Chairman 2016
Openwater Director -
Holdings of Jeffrey T. Huber
14
(Software)
GRAIL, Inc. 34,098,422 5.08% 341 USD
Source: ("Jeffrey T. Huber - Biography", 2021)
Talbott Roche (Independent Director)
According to ("Talbott Roche - Biography", 2021), currently, Talbott Roche is President, Chief Executive
Officer & Director at Blackhawk Network Holdings, Inc. and President & Chief Executive Officer at
Blackhawk Network, Inc. (a subsidiary of Blackhawk Network Holdings, Inc.). Ms. Roche is also on the
board of Electronic Arts, Inc. In her past career Ms. Roche was Director-New Business Development at
Landor Associates International Ltd., Senior Vice President-Sales at iGroup Ltd., and Vice President-
Sales for News America Marketing, Inc. and Senior Vice President-Sales of TFCF Corp. She received
an undergraduate degree from Stanford University.
Current positions of Talbott Roche

Name Title Since

(Software)
Blackhawk Network Holdings Inc President, Chief Executive Officer & Director 2016
(Business Support Services)
Blackhawk Network, Inc. President & Chief Executive Officer -
Holdings of Talbott Roche

(Software)
Source: ("Talbott Roche - Biography", 2021)
Heidi J. Ueberroth (Independent Director)
According to ("Heidi J. Ueberroth - Biography", 2021), currently, Heidi J. Ueberroth occupies the position
of Co-Chairman for Pebble Beach Co. and President for Globicon.
She is also Member of Council on Foreign Relations, Inc. and on the board of 6 other companies. In her
past career Ms. Ueberroth held the position of Director-Sales & Programming at Ohlmeyer
Communications, Director-Sales & Programming at ESPN, Inc. and President-NBA International at
National Basketball Association, Inc. Ms. Ueberroth received an undergraduate degree from Vanderbilt
University.
Current positions of Heidi J. Ueberroth

Name Title Since

(Software)
15
Globicon President -
Four Seasons Hotels Ltd. Director 2017
Pebble Beach Co. Co-Chairman 2020
Cancer Research Institute Trustee -
Ueberroth Family Foundation Director -
Monterey Peninsula Foundation Director -
Santander Consumer USA, Inc. Director -
Stillwater Growth Corp. I Independent Director -
Council on Foreign Relations, Inc. Member -
Holdings of Heidi J. Ueberroth
Electronic Arts Inc. (EA) 4,563 0.0016% 617,693 USD

(Software)
Source: ("Heidi J. Ueberroth - Biography", 2021)
III. EXTERNAL ENVIRONMENT: OPPORTUNITIES AND THREATS

5. Societal Environment
Economic
“Our business is subject to economic, market, and geopolitical conditions, which are beyond our control.
The United States and other international economies have experienced cyclical downturns from time to
time” (ELECTRONIC ARTS INC., 2020). Organizational success is directly influenced by a country's
economic growth. Worsening economic conditions, such as inflation, slower development, recession,
and other macroeconomic factors, including some arising from public health outbreaks namely the
COVID-19 pandemic and geopolitical issues, could have a material negative effect on EA and its
operating performance.
Microeconomic factors such as competitiveness standards have an impact on the firm's competitive
advantage and macroeconomic factors such as inflation rate, savings rate, interest rate, foreign
exchange rate, and economic cycle assess aggregate demand and aggregate investment in an economy.
Some researches represent EA is vulnerable to the impact of foreign currency exchange rate fluctuations,
which have risen in response to the macroeconomic instability created by the COVID-19 pandemic. When
contrasting the degree of quantitative easing over the last decade, the prices of EA Gaming goods and
overall retail prices in the US market have stayed stable. However, the strengthening of the US dollar,
especially against the Euro, British pound sterling, Australian dollar, Chinese yuan, South Korean won,
and Polish zloty, had a negative effect on the company's foreign net revenue, which now accounts for 59
percent of total revenue because of higher exchange rates. "We use foreign currency hedging contracts
to mitigate some foreign currency risk. However, these activities are limited in the protection they provide
us from foreign currency fluctuations and can themselves result in losses" (ELECTRONIC ARTS INC.,
2020). That is why, before entering a new market, EA Gaming should consider the background of forex
16
risk as in recent years a number of companies have suffered losses due to currency risk, for example in
Venezuela, Brazil, and Argentina its effects are more noticeable.
According to Zacks Equity Research calculations – “Over the past four weeks, shares have rallied 6.07%,
and there have been 3 higher earnings estimate revisions in the past two months for fiscal 2021
compared to none lower". "A $1000 investment made in May 2011 would be worth $7,040.63 or a gain
of 604.06%, as of May 3, 2021”. However, these numbers were not quite as encouraging in early 2019.
As EA Gaming claimed: “Interest rate volatility, including lower interest rates resulting from actions taken
in connection with the COVID-19 pandemic, can decrease the amount of interest earned on our cash,
cash equivalents, and short-term investment portfolio". Despite that, some analysts did not expect the
further potential for EA in the future; it was able to benefit from a surge in video game demand caused
by coronavirus-induced social distancing norms. Thus, everything turned out well for Electronic Arts due
to digital sales. Although EA continues to take advantage of a spike in demand for video games, it should
carefully rethink the interest rate and take into consideration its effect on borrowing capacity and
investment attitudes, as it influences how much individuals are able to borrow and invest. A high interest
rate would encourage people to spend and expands EA Gaming's growth potential.
"EA is an equal opportunity employer. All employment decisions are made without regard to race, color,
national origin, ancestry, sex, gender, gender identity or expression, sexual orientation, age, genetic
information, religion, disability, medical condition, pregnancy, marital status, family status, veteran status,
or any other characteristic protected by law" (Electronic Arts Inc, 2021). Even though that company
comes from unusually diverse demographic backgrounds and creates comfortable working conditions,
employees at EA tend to have relatively short tenures. "Electronic Arts' total number of employees in
2020 was 9,800, a 1.03% increase from 2019, and in 2019 was 9,700, a 4.3% increase from 2018"
(Macrotrends, 2020). According to Zippia's research - «Staff members usually stay with the company for
2.4 years. The average employee at Electronic Arts makes $72,453 per year. Pay at Electronic Arts is
significantly lower than some of its highest-paying competitors, like ServiceNow, Zynga, and KIXEYE,
which pay $113,764, $111,342, and $109,329, respectively".
Kate Lister estimates that “56% of the U.S. workforce holds a job that is compatible at least partially with
remote work”. EA Gaming has an opportunity to hire a skilled workforce at competitive salaries because
of the growing trend for work at home employment, which was sparked by a coronavirus outbreak.
Currently, if the country's unemployment rate is high, it means there is a greater supply of jobs than
demand, which means people would be able to work for a lower wage, reducing costs. If the
unemployment rate increases, it will have two effects on EA's strategies: first, it will provide enough
consumers for EA's goods, and second, it will make hiring talented and skilled workers more costly.
The higher GDP growth rate indicates increased economic demand and consumers' willingness to spend
more on available goods. According to the Bureau of Economic Analyses about the situation in 2021:
"The increase in real GDP in the first quarter reflected increases in personal consumption expenditures
17
(PCE). The PCE price index increased 3.5 percent, compared with an increase of 1.5 percent. Excluding
food and energy prices, the PCE price index increased 2.3 percent, compared with an increase of 1.3
percent." However, how it was estimated by Mr.Daco: "Total economic output should return to pre-
pandemic levels by summer — in fact, it has already done so". By taking this into account EA Gaming
will use the GDP Trend and Rate of Economic Growth to extend its product range and target new
consumers. One way to attempt is to track shifts in consumer purchasing behavior and evolving value
propositions.
Technological
Across the board, technology is changing a variety of sectors at a fast rate. The importance of recognizing
technical factors during the strategic decision-making phase has increased the speed of technological
development and technology diffusion around the world. A detailed search of the technological landscape
will assist Electronic Arts in capturing technological developments in order to gain such market
advantages, such as increased profitability, accelerated innovation, and improved operational
performance. Furthermore, a company should conduct not only a technical analysis of the market but
also a frequency analysis of how quickly technology disrupts the industry. Slower speeds provide more
time for a business to cope and be successful, while faster speeds provide less time.
One of the factors that influence the development of information and communication technologies is
social media marketing. Electronic Arts' marketing and advertising efforts may fail to resonate with
consumers. According to EA INC - "Our products and services are marketed worldwide through a diverse
spectrum of advertising and promotional programs. An increasing portion of our marketing activity is
taking place on social media platforms and through streaming networks, influencers, and content creators
that are outside of our direct control. Our ability to engage players with our products and services is
dependent in part upon the success of these programs, and changes to player preferences or service
disruptions may negatively impact our ability to reach and engage our players". In order to take advantage
of marketing for our products and services and optimize advertising rates or other media placement costs
without significant treats on the business, EA can operate in the following direction:
"The growth of high-speed internet and competitive multiplayer gaming has also supported the rise of
online HD streaming services like Twitch, Youtube Gaming, and various e-sports leagues. The level of
audience interest and engagement with pro gamers and Twitch personalities is now high enough" (Chris
Alumni, 2018). These forces have combined to build an increasing community of professional and
personality-driven streamers, as well as their viewers and the broader gaming public. Full-time players
have powerful financial incentives to play only the most successful games in order to meet the largest
subscriber bases and possible bonuses, amplifying hit games' network impact. Competitive gamers and
streamers are most interested in releases that are better suited for competition and streaming since they
introduce the game to their existing viewers and effectively promote it for free. When a game's audience
expands, more people try it out for themselves, the opportunity for a pro-community grows, and more
18
streamers join in to ride the wave and grab a piece of the game's audience. Minecraft, PUBG, and Fortnite
all used this form of game distribution, and all three games were a huge success. EA should play a
significant role in group sustainability and engagement in the long run. Rather than moving on to new
projects, developers should expand their audience base and communicate with their game's players and
fans, integrating their input into updates and new content add-ons through the streamers. Received
information from streams help to identify technological trends, which can be used to begin building online
brand communities through social media initiatives.
Electronic Arts used to compete with other entertainment firms for retail sales of disk-based games.
However, increased bandwidth and the number of connected devices have enabled companies to offer
games digitally rather than as boxed goods in recent years. To adapt to this shift in the industry, EA
developed its own digital distribution strategy. EA, on the other hand, made mistakes as it attempted to
move further into digital distribution. The business acknowledged that it was unprepared for the transition
to digital distribution. The standard of its games suffered because of its lack of planning, and customer
satisfaction scores plummeted. "In 2012 and 2013, EA was named the “Worst Company in America” by
Consumerist blog. One of the biggest complaints that consumers had was that the Company charged
extra for gamers to buy more storylines in certain games" (Robert Alumni, 2016). EA Gaming should
evaluate the country's internet and cell phone penetration, as this will aid in the development of a
business model that is tailored to local needs and realities. Beside of this, it is also crucial to understand
the degree of technological growth and maturity in the target market. Electronic Arts will gain market
share by concentrating on new technological technologies in markets where technological development
has not yet reached maturity.
To remain ahead of the competition, Electronic Arts should carefully consider current technical advances
and growth levels. Electronic Arts INC, for example, has seen the future of gaming, which is as much
about socializing as it is about blasting opponents. The company is working on adding more
communication features to its app so that players can talk and share their experiences without leaving
the game. Many people are now playing games and still using video applications like Discord. As said
Laura Miele, Electronic Arts’ chief studios officer - "The idea of this innovation is to bring more of those
capabilities into the games themselves and I think we need to support video social engagement in one
experience versus people having multiple apps. There’s a big opportunity there”. Such technological
advancements have the potential to change the industry and rewrite the performance rules for market
players.
Political-legal
Political considerations influence not only transnational corporations' investment decisions, but also
companies like EA Gaming. The political climate, as well as other factors, affect the cost of doing
business and long-term profitability. A secure and pleasant business climate with predictable market
growth patterns is provided by high political stability. When there is political chaos, such as the threat of
19
terrorist attacks or internal strife, as well as the possibility of civil unrest, it deters investors and
undermines stakeholders' confidence in economic and organizational success. Electronic Arts are
currently present in a number of nations, each with its own set of political tensions. Rising tensions and
instabilities in the global political climate can have an impact on the gold industry's growth and restrict
Electronic Arts' growth opportunities.
Electronic Arts should closely examine protests by pressure groups, social environment campaigners,
and labor unions since they play an important role in the policy-making process. Electronic Arts' ability to
work with the community and achieve long-term corporate goals can be enhanced by close collaboration
with such organizations. However, EA Gaming should also consider the positioning of such groups as
they can contradict the main concept of EA. Electronic Arts practices in protecting the environment: "EA
INC are committed to doing our part to combat climate change and are taking action to implement the
recommendations of the Task Force on Climate-Related Financial Disclosures (TCFD)" (Electronic arts
INC, 2021).
The country's laws, especially those governing business, such as contract law, are crucial because they
define what is and is not permissible. For instance, some countries have struggled with bureaucracy and
corruption, both of which have a negative impact on the business climate. Electronic Arts' market climate
is becoming highly volatile because of eroded public confidence in business organizations and overall
political and economic systems in countries with high levels of corruption and poor law enforcement. If
Electronic Arts try to penetrate markets with a corrupt economic and political environment, it would
threaten the company's long-term viability by destabilizing society, compromising the justice system, and
jeopardizing the rule of law.
Companies like would be discouraged from maximizing their revenues if they were subjected to a high
degree of taxes. Entering countries with high tax rates would have a significant impact on Electronic Arts'
profitability. High taxation has a negative impact on foreign trade and prohibits exports. Electronic Arts
would benefit from the high income that can be invested in research and development if it enters markets
with low taxes. As a result, EA should study industry-specific taxation policies in order to gain a better
understanding of the host government's objectives and interests in emerging industries.
The legal factor that has an impact on EA's operating is intellectual property protection. Intellectual
property laws and other data security laws exist to safeguard the inventions and patents of businesses
that benefit solely from the information they collect. If there is a possibility the data will be compromised,
the company will lose its competitive advantage and face a high risk of failure. EA should recognize the
country's government, which is not serious about defending business organizations' intellectual property
rights since it would discourage entrepreneurs from investing in organizations due to the high risk of
ideas being stolen. According to Electronic Arts - "Our products and brands are subject to intellectual
property infringement, including in jurisdictions that do not adequately protect our products and
intellectual property rights. Our products and services are available worldwide and the laws of some
20
countries, particularly in Asia, either do not protect our products, brands, and intellectual property to the
same extent as the laws of the United States or are poorly enforced". Hence, in countries with weaker
intellectual property compliance systems, the legal defence of EA's rights may be ineffective.
Furthermore, some third parties may register their intellectual property rights in foreign countries without
permission.
Sociocultural
Norms, principles, and developments in society have a significant impact on organizational culture. The
influence of social factors is important not only for the operational aspect of the company but also for the
marketing aspect. A detailed understanding of consumers, their lifestyles, levels of education, and values
in a community, or section of society, would aid in the development of both goods and marketing
messages that would contribute to a successful venture. Electronic Arts is a sociocultural focused
organization with a diverse demographic trend, as seen in the graph below. Electronic Arts can choose
the right business segment with high growth potential by studying demographic characteristics. Migration,
for example, has an effect on company and marketing strategies. As a result, it is critical for Electronic
Arts to consider the public's general attitude toward migration, as this can affect companies' willingness
to recruit foreign executives to the host country.
Gender Life Stage

0.20% 17%
43.90% 33%
55.90% 50%
female male other gender adult (parent) adult (non-parent) teen
Age
18%
16%
14%
12%
10%
8%
6%
4%
2%
0%
11-17 18-24 25-29 30-34 35-39 40-44 45-49 50-54 55-59 60-64
years years years years years years years yeas years years
Source: (Internal EA estimates derived from internal and third-party data from calendar year 2019)
Gender Composition in Labor Market EA Gaming is various, allowing it to comprehend the society's
degree of liberality, for instance, women's rights, and women's voice in social issues and consumption
21
decisions. "Notably, 43.9 percent of players are female and the average age is 33 years old. 50% of EA
Studios’ senior leadership team is female" (Electronic Arts, 2019). Such indicators are positive for a
gaming company since the gender composition of the labor market is a strong predictor of a household's
disposable income, goals, and related needs. Furthermore, such studies will raise public awareness of
social issues, which can lead to increased consumer activism and pressure from non-governmental
organizations and pressure groups.
2020, Electronic Arts - "While we have made steady improvements with respect to diverse representation,
we are not where we aspire to be in all areas. Our plan is to create an inclusive culture that welcomes
different viewpoints and enables employees to do the best work of their careers". From research, this
strategy involves promoting ally ship, using Employee Resource Groups (ERGs) as an organizational
resource to drive progress toward the BU Inclusion Action Plan's core employee engagement and
retention goals through social and racial justice initiatives. On the one side, such a company's position
plays into its hands. Since each culture has its own set of norms and values, which influence consumer
behavior. Because of its perspective, Electronic Arts may form local teams and form local alliances to
better understand social perceptions and norms in order to adapt marketing campaigns to specific cultural
contexts.
For Electronic Arts, observing social class stratification is also crucial. Electronic Arts would need to use
niche-marketing tactics to offer luxury goods at premium rates to a market where the high-end market is
relatively limited. Similarly, where social class stratification is poor, market segmentation based on social
class may be unsuccessful. The purchasing power of money has an effect on consumer spending habits.
It is critical to evaluate customers' interests and buying habits by studying and predicting their purchasing
power based on applicable economic indicators. To assess local consumers' evaluations of foreign goods,
Electronic Arts should attempt to understand the degree of market ethnic nationalism and recognize the
country of origin impact. Furthermore, research into customers' leisure preferences will support EA
Gaming in improving the customer experience, such as whether customers prefer experiential goods to
conventional product offerings.
6. Task Environment
Treat of new entrants (Low rate)
In the multimedia and graphics software industry, especially in the video game production segment, the
threat of new entrants is always existed and strong. If the market is profitable and the barriers to entry
are low, it will draw more competitors, increasing the danger of new entrants. Therefore, it is more
important to have the intellectual capacity to create a new or creative idea and bring it to life through
successful programming and coding because, in fact, this field does not require costly or difficult-to-find
materials while programming video games. A new company can propel itself into the top echelon of video
game developers with only one genius concept that leads to a blockbuster game. New entrants placed
pressure on Electronic Arts by lowering pricing strategies, cutting prices, and offering consumers new
22
value propositions. “Our business is intensely competitive. We may not deliver successful and engaging
products and services, or consumers may prefer our competitors’ products or services to our own.
Competition in our business is intense. Many new products and services are regularly introduced, but
only a relatively small number of products and associated services drive significant engagement and
account for a significant portion of total revenue” (ELECTRONIC ARTS INC., 2020).
EA Gaming must predict, often years in advance, the ways in which our goods and services can compete
in the market in order to remain competitive among the growing number of new competitors. Nowadays,
EA mostly faces significant competition from companies such as Activision Blizzard, Sony, Microsoft,
Ubisoft, Bethesda, Epic Games, Nintendo Take-Two Interactive NetEase, and Tencent when it comes to
developing games and services for consoles, PCs, and mobile devices. What's more, larger technology
firms with substantial capital, such as Google, Apple, and Amazon, are undertaking gaming-related
projects that might compete with Electronic Arts. More broadly, companies that include entertainment
services, such as online casual entertainment, movies, social networking, television, and music, create
obstacles for Electronic Arts since its players may engage in other forms of entertainment in their spare
time.
Andy Billings, Electronic Arts' head of profitable innovation, guided the business through a tumultuous
period when it developed out of step with the industry and encountered serious financial difficulties.
Despite being a well-known computer-era company responsible for many popular game titles such as
Madden NFL, Battlefield, The Sims and Need for Speed, EA failed to see the changes coming.
“Organizations are built for stability, not change. The company is not out of the woods and must
constantly be innovating” Andy Billings said. Epic Games defied consensus by releasing Fortnite, a
massively successful free-to-play game that relies on micro transactions for revenue. EA has responded
with Apex Legends, a free-to-play game that has over 50 million players.
Bargaining power of buyers (Low Rate)
Buyers can be a demanding lot, especially when they want to get the best possible offering for the least
amount of money. Consumers have the option of being selective about where they spend their money.
Furthermore, when it comes to the games they buy and enjoy gamers tend to have a pack attitude. The
smaller and more strong Electronic Arts' consumer base is, the greater the consumers' negotiating power
and willingness to demand increasing discounts and deals. Buyers wield a lot of power in the industry,
and one bad or disappointing offering that sparks a backlash from the gaming community can completely
devastate a company.
Electronic Arts can tackle the bargaining power of buyers by lowering consumer concentration through a
geographically distributed customer base, consumers' unwillingness to integrate backward, high
switching costs, low price awareness, lower business knowledge, and buying personalized goods in
limited quantities.
23
Customers' bargaining power against Electronic Arts grows as their client base becomes more
concentrated. As a result, the only way to prevent increasing consumer bargaining power is to build a
large customer base. Furthermore, it will enable the company to streamline its sales and production
processes. If there are few sellers, buyer power will be high, while if there are many sellers or business
organizations, buyer power will be lower. Customers' purchasing power would be a weaker force within
the industry if buyers' income were strong. Low switching costs stimulate backward integration and
demonstrate the buyers' desire to manufacture their own goods rather than buying them from Electronic
Arts.
Building loyalty by quickly innovating new goods will increase switching costs, reducing the bargaining
power of consumers. These are tactics that Electronic Arts can use to improve its competitive position in
the industry. Customers often seek discounts and outstanding customer service, so if Electronic Arts
continue to release new goods, it will reduce buyers' bargaining power. This means that Electronic Arts'
current consumers would be less likely to defect to rivals as a result of new products.
Threats of substitute products or services (Medium Rate)
Industry profitability suffers when a new product or service addresses similar consumer expectations in
different ways. As a result, if a replacement product or service provides a value proposition that is
significantly different from the industry's current offerings, it poses a significant challenge. Dropbox and
Google Drive, for example, are cloud storage alternatives to hard drives. App-based games, which users
can play on their smartphones or tablets, are the perfect example of a replacement for Electronic Arts'
goods. As a result, if a replacement product or service provides a value proposition that is significantly
different from the industry's current offerings, it poses a significant challenge.
Electronic Arts can face challenges with substitute products or services in the cases if a cheaper
substitute product or service is available from another industry, the psychological switching costs of
moving from industry to substitute products are low, substitute product offers the same or even superior
quality and performance as offered by Electronic Arts’ product.
"The switching cost of using the substitute product is high due to high psychological costs or higher
economic costs" (Mitchell Grant, 2020). By increasing the switching cost for the customers through
working on loyalty, EA Gaming can reduce the threat of substitute products or services. Customers
cannot derive the same utility in terms of quality and performance from substitute products as they derive
from Electronic Arts’ products.
EA should provide convincing reasons to the customers by offering a better experience and high value
for money. Electronic Arts should devote more resources to improving the quality of its goods. As a result,
consumers would prefer its goods, which offer higher quality at a lower cost, over alternative products
that offer higher quality but at a higher cost. It can improve the quality, maximize value for money, and
set a strong differentiation basis to discourage customers from using the substitute product. In turn,
24
differentiating products will ensure EA Gaming that buyers see its products as unique and do not shift
easily to substitute products that do not provide these unique benefits. It can offer such unique benefits
to its customers by conducting market research to better understand their desires and delivering what
they need. Moreover, being service-oriented rather than just product-oriented and understanding the
core need of the customer rather than what the customer is buying also assess EA to tackle the threat
of substitute products.
Bargaining power of suppliers (Low rate)
Almost every company in the Multimedia and Graphics Software industry purchases raw materials from
a variety of sources. EA’s suppliers provide physical products and materials, such as graphics cards,
computer hardware and software, and network infrastructure, as well as intellectual property. Video game
material and software code are examples of intellectual property. Since an EA game is made up of a
diverse set of ingredients, the company works with a diverse set of vendors. Suppliers of specific products
may have some negotiating power, and as a result, they may be able to reduce the market margins that
Electronic Arts can win. In the technology industry, powerful suppliers use their bargaining advantage to
extort higher prices from companies. However, since the company has a diverse set of suppliers, a price
rise from one or two of them would only have a minor impact on the company's overall cost of doing
business.
Suppliers in this market do not compete with other commodities. This implies that there are no other
options for the commodity except the ones provided by the suppliers. As a result, suppliers' bargaining
power within the processing industry. If EA Gaming establishes an effective supply chain with numerous
suppliers and develops dedicated suppliers whose business is dependent on the company, it will be a
great opportunity.
In fact, if the number of suppliers in the industry in which EA operates is large in comparison to the
number of customers, this means that suppliers have less market control, making their bargaining power
poor. On the other hand, if suppliers have concentrated into a particular region and their concentration is
higher than their customers are, Electronic Arts will benefit from developing close relationships with them,
where both parties benefit. EA Gaming's supply chain can include a variety of vendors. Electronic Arts,
for example, may have different suppliers for its various geographical locations. Because of the
geographical dispersion, it will ensure supply chain productivity this way.
Electronic Arts will obtain low-cost raw materials from its manufacturers if it is price-sensitive and has
sufficient business awareness. If the commodity costs are too high for EA, it may change suppliers
because switching costs are low. Experimenting with product designs using various products, for
example, so that if the price of one raw material rises, the business may switch to another. However,
when the cost of switching from one supplier to another is high for customers, such as due to contractual
agreements, this force of suppliers is especially powerful.
25
Rivalry among competing firms (High rate)
The Latest Firm Rivalry graph depicts the number of rivals who compete with Electronic Arts. Electronic
Arts is under a lot of pressure from competing companies, which can limit each other's growth potential.
Only a few competitors have a sizable market share. They will struggle to gain a competitive edge and
as a result of this become market leaders. Because of aggressive targeting and pricing tactics against
one another, profitability in these industries is poor.
If the industry is rising quickly, there are only a few players in the market, the goods are highly
differentiated, there is a clear market leader, each market player targets different sub-segments, and exit
barriers are low, firms can easily leave the industry without incurring huge losses, Electronic Arts will face
little competition from established firms. Similarly, there are several variables that improve Electronic
Arts' rivalry with other companies. If market competitors are strategically diverse and target the same
market, for example, the business would face intense competition from established firms. Customers that
are not loyal to established brands will face fierce competition, as switching costs are low, making it
easier to attract new customers.
The manufacture of goods within the industry necessitates a significant increase in capacity. As a result,
the industry is vulnerable to supply-demand imbalances, which often result in overproduction. Because
of the overproduction, businesses must lower their prices to ensure that their goods sell. Electronic Arts
should perform market research to better grasp the industry's supply-demand situation and avoid
overproduction. In addition, due to the high capital and asset investment needed to operate, the industry's
exit barriers are especially high. Due to government regulations and limitations, the exit barriers are also
high. As a result, companies within the industry are unable to quit, and they continue to produce despite
low profits.
Competitors with unequal size and differentiated goods that are experiencing rapid market growth are
more likely to pursue aggressive tactics toward one another. As a result, competing businesses find it
difficult to win over each other's consumers because each of their goods is distinct. Both of these factors
combine to make current firm rivalry a significant strategic concern for Electronic Arts. EA, unlike Coca-
Cola or Nike, cannot rely on its brand name to give it a competitive advantage. The firm must continue
to create cutting-edge video games and market them successfully to the gaming public. For two decades,
EA's Madden franchise has become the gold standard for football games. Players choose the game
because it is the most advanced football video game available, not because it is produced by EA.
Electronic Arts’ industry is rising every year and is expected to continue doing so for the next few years.
Since they do not need to steal market share from each other, rivals are less likely to participate in
competitive actions when the industry is growing. That is why; EA must continue to dominate the sports
market while expanding its adventure game portfolio, which is currently dominated by Activision
Blizzard's offerings such as «World of Warcraft" and "Call of Duty".
26
Relative power of unions, governments, special interest groups
• Labor Unions
For years, the industry has been scrutinized for exploitative activities such as work insecurity, mass
outsourcing, and "crunch." Crunch, short for "crunch time," is an industry-wide phenomenon that forces
workers, particularly developers, to work extra, unpaid hours to meet a game's release date, resulting in
60 to 80-hour workweeks. One of the most egregious examples of crunch came in October of 2018 when
it was revealed that Rockstar Games employees were working 100-hour weeks to complete Red Dead
Redemption 2. In the past, workers have struck back. In a class-action case filed in 2006, Electronic Arts
(EA), the publisher of wildly successful games like Madden NFL, Mass Effect, and Dragon Age, paid a
$14.9 million settlement to unpaid overtime staff. The only other choice is to turn down the job and move
it on to one of the many other game developers looking for jobs. In order to prevent a labor-related
walkout in the video game industry, Electronic Arts should accept its labor union.
• Government
Through an internal government relations unit that reports to EA's General Counsel, EA carefully handles
its public policy and political involvement. The Board's Nominating and Governance Committee evaluates
EA's political involvement on an annual basis. Electronic Arts and the device it trialed with Star Wars:
Battlefront II's multiplayer beta are examples of recent cases involving loot boxes. The backlash against
Star Wars' use of the mechanic — as well as loot boxes in other AAA games — drew the attention of
policymakers all over the world, prompting Belgium and the Netherlands to enact their own regulations,
forcing EA and other publishers to change or exclude their titles from those markets.
7. Summary of External Factors

Organizations will make wise strategic decisions by using the Porter five forces model and PEST
analyses in a real-world setting. Each of these powers has a different effect and value depending on the
situation. A stronger force has a lower profit margin, while a weaker force has a higher profit margin. On
this basis, a benefit decision for the sector can be made and used in strategic planning. Electronic Arts
strategists will obtain a full picture of what influences the profitability of the company in the gaming
industry by evaluating all competitive powers. They have the ability to see game-changing patterns early
on and adapt quickly to seize the opportunity.
Industry rivalry is the most serious challenge to EA among Porter's five powers. As a result, EA GAming's
ability to perform effectively in its industry is critical. Video game players have a low level of brand loyalty
to specific game developers. Unlike car buyers, who are frequently BMW or Ford loyalists, gamers simply
want the latest games and are unconcerned about the manufacturer. It is unusual to find a gamer who
supports EA but avoids Activision. If a business is to be effective in achieving its goals and developing
suitable strategies, it must first learn about its competitive climate.
27
However, as a company that makes computer games, EA has made a commitment to keep up with
technological advancements by increasing the ability of the software, especially in popular games like
FIFA, NHL, NBA, Sim City, and Alice Ultima. That is why technological environment research and
development are critical. Consumer expectations are rising, and the only way to ensure satisfaction is to
increase the efficiency of technical improvement methods. The actions' aim is to strengthen business
growth strategies by encouraging better and more dependable electronic skills, which improves energy
efficiency and thus boosts economic growth. Electronic Arts can also focus on resolving the issue of
family play. Acquiring or merging with other closely related businesses might help ensure that certain
steps are in place to minimize practices that contribute to customer dissatisfaction with a service or
product.
The initiative is linked to the company's consumptions, which includes three-dimensional games and
electronic products. With the growth of mobile telephony and increased internet demands, particularly in
developing countries, new fascination technologies mean that an increase in demand is unavoidable for
the business. As a result, the organization must devise plans to deal with the demands that come with
expansion. The three-dimensional games played on a game battlefield receive further proposals. Then
there are variations in tactical measures due to the reality provided by vehicles, maps, multi-player
methods, and regalia. The main goal of every presentation is to produce impressive and impulsive results
for the customers.
IV. INTERNAL ENVIRONMENT: STRENGTHS AND WEAKNESSES

8. Corporate Structure
According to Louis A. Allen – “Decentralisation refers to the systematic effort to delegate to the lowest
level all the authority except that which can be exercised only at central points. Decentralisation is
concerned with a placement of authority with reference to responsibilities.”
Electronic Arts Corporation represents decentralized decision-making authority including executive

officers and Board of Directors. According to (Schatz, 2020), Board of Directors determines that each of
non-employee directors qualifies as an “independent director”. Also, the Board of Directors has a
standing Audit Committee, Compensation Committee and Nominating and Governance Committee,
where all members of these committees are independent directors. The Audit Committee monitors
financial reporting and it is also responsible for establishing and maintaining complain procedures
regarding accounting and audit matters. The Compensation Committee is responsible for setting the
overall compensation strategy foe the company. The Nominating and Governance Committee
recommends nominees to the Board of Directors for director and committee membership.
According to ("Electronic Arts (Company) - Giant Bomb", 2021), Electronic Arts’ structure consists of four
divisions called Labels. There are EA Games, EA Sports, EA Play and a sub-Label called EA Interactive
which consists of studios developing games for the Mobile and Social markets. Under EA Games label
28
the following divisions are held: EA Los Angeles, EA Montreal, EA Black Box, EA Phenomic, DICE,
Criterion Games, Visceral Games, Respawn Entertainment.
Electronic Arts is based on a combination of function and project basis. The function basis groups
employees into functional areas based on their experience in such areas as operations, marketing,
finance and human resources. The department head of each functional area reports to the CEO, the
CEO then coordinates and integrates the work of each function. Also, the presence of Labels in the
company refers it to the project basis. All of the abovementioned divisions have independent marketing,
design, managerial and accounting departments.
When compared with the structure of such large companies as Electronic Arts and Activision Blizzard,
the second one has more centralized decision-making authority. Under the office of CEO, departments
are organized according to their functionality with departments such as customer relations, legal, strategy,
marketing, etc. All these departments are responsible for performing their respective tasks on aggregate
level.
9. Corporate Culture
“Corporate culture refers to the shared values, attitudes, standards, and beliefs that characterize
members of an organization and define its nature” ("Corporate Culture - Encyclopedia - Business Terms",
2021).
Electronic Arts – “We invest in our managers and employees, to help them learn and grow. A key part of
that is nurturing the development of inclusive leaders who foster a belonging culture; and in our systems
and processes to deliver an experience where everyone can thrive and do their best work”.
Electronic Arts have such a concept as the Equality Town Halls. Equality Town Hall gather a company
and discuss issues related to equality. There are many goals and one of them is to change the internal
culture so that conversations about equality are perceived openly and valuable. Discussions of such
topics in the Equality Town Hall prove that EA creates a safe open space for discussion of different
opinions.
The first Equity Town Hall is theTEA talks, that provides an opportunity for employees to talk about free
topics to strengthen relationships with EA. They are held in various formats: in person or virtually; in
groups or alone with each other. Such discussions take place in the company on a monthly basis.
Electronic Arts – “As we aim to inspire the world to play, we know that our strength lies in the diversity of
our people”.
The second Equity Town Hall in Electronic Arts is EA ALLY, that means listening to each other and
solving problems. EA creates an environment where everyone feels safe and respects diverse cultures
and backgrounds.
29
Also, there is Employee Resource Groups (ERGs) in Electronic Arts, that bring people together based
on shared experience or proximity to combine diversity and create a supportive workplace environment.
Thousands of employees come together to create a culture of alliance.
Electronic Arts – “We believe in the potential of every human being. We celebrate diversity of thought,
cultural differences, lifestyle, age, background, experience, religion, economic and social status, gender
identity and marital status. Building a culture of inclusion allows us to create experiences for our people,
culture, and community”.
Investing in inclusiveness and diversity will shape the future of electronic arts. EA is working on several
key areas to help integrate inclusiveness into EA's systems, processes and culture.
Key areas ("Electronic Arts Home Page - Official EA Site", 2021):
• Develop relatable content and games.

• Enable expansion into new and diverse markets.
• Attract, develop, and retain great talent that can thrive and do their best work.
• Bridge to better representation that authentically reflects players around the world.
Also, Electronic Arts has Public Commitments such as Gender Equality and Social and Racial Justice.
Electronic Arts promotes gender equality by ("Electronic Arts Home Page - Official EA Site", 2021):
• Leading in the representation of women in games.

• Empowering an inclusive culture.
• Promoting the gender equality movement through our industry and our communities.
Electronic Arts took such actions to support the struggle for social and racial justice as ("Electronic Arts
Home Page - Official EA Site", 2021):
• Contributing $1 million to organizations fighting for racial justice in the US and against
discrimination around the world.
• Doubling the match for employee donations to local and global charities addressing racism and
discrimination.
• Holding a series of employee wide community conversations to discuss the realities and impacts
of racism, bias, and discrimination.
10. Corporate Resources

a) Marketing
Electronic Arts – “We are EA’s Marketing Organization, and we tell the story of Electronic Arts. Our
marketing and communications teams are at the forefront of building meaningful relationships with
hundreds of millions of players around the world who love our games. Our teams develop the strategic
30
vision of our products, run world class multi-channel campaigns, execute on global engagement across
all touch points and develop global analytics and insights. We are fostering an environment where our
teams can deliver the most amazing work of their career while inspiring the world to play.”
The role of marketing manager is to increase engagement, monetization and promotion through our
internal channels for the game’s events, updates and tentpole moments, resulting in end-to-end
execution of cross-marketing, multi-channel campaigns.
As Electronic Arts’ business becomes more digital, more and more sales are made through the Internet,
for instance through the Origin, the company's direct-to-consumer platform, digital downloads from third-
party retailers, and mobile applications.
According to ("Electronic Arts Inc. | Company Profile | Vault.com", 2021), EA depends on two major
console makers for about half of revenue. Games for Sony's PlayStation supply more than 30% of sales
and games for Microsoft's Xbox account for over 15% of sales. EA has partnerships with Tencent
Holdings Limited in China and Nexon Co. Ltd.
The company's marketing and sales expenses were $631 million, $702 million and $641 million for the
years 2020, 2019 and 2018 respectively.
EA's strategy is to create stunning games and content-based services for a wide global audience, and
the company believes that leveraging business models and distribution channels provides a strategic
advantage for EA. Thanks to these advantages, EA has the opportunity to attract an increasing number
of players.
Marketing mix
1. Product
There are two types of product: Consumer products that are purchased by the consumer and Business
or Industrial Products that are purchased by a company or an organization in bulk.
Consumer products are divided into four categories: Convenience products, Shopping products,
Specialty products, Unsought Products. In the case of shopping product, these products are carefully
selected and buyers spend a lot of effort looking for specific brands, stores, prices. For example, some
people prefer EA’s FIFA to other analogues because it is more realistic. And if FIFA is out from stock
from their retail stores, they will not look for a replacement, but will look for another store to buy it.
Business products contain the raw material, the major equipment, the accessory equipment, the
component parts, process materials, consumable supplies and the industrial or business service. In the
case of the major equipment, EA uses the “Frostbite” game engine to design FIFA for all platforms, this
engine basically provides all the physique, player visuals and the actions needed in the game. Also, EAs
raw material could be the artists imagination, since they will draw the characters that are needed for the
game.
31
According to Philip Kotler, a product line can be defined as “a group of products that are closely related
because they function in a similar manner, and sold to the same customer groups, are marketed through
these same types of outlets, fall within given price range.” For instance, Madden 09, Dante's Inferno,
NHL 07 are PSP games product line if Electronic Arts.
2. Promotion
From time to time EA reduces the prices of their game as a promotion. The most notable ones are the
demos. When there’s a new game about to be released, EA give out free demos, for customers to try the
new game and to have a feel of the game before they buy it.
Sales promotion methods EA uses:
• Coupons – EA uses coupon methods primarily on its Origin online resource. Mostly giving away
coupons for in-game content or discounts on the latest games.
• Demonstration – EA is hosting a major event to showcase a new game, where EA shows what
the game looks like and how it feels.
• Free samples – These are free trials of the product to increase sales in the early stages of
development.
3. Place
The distribution channels of EA are quiet a large one, since it is a very big organisation with different
companies doing their own thing. EA is located in 30 countries across the world. Earlier the distribution
is done from the producer (EA), to the wholesaler, retailer and then to the buyer. However, nowadays
more and more games are being sold online on Origin (EAs digital distribution network) and other gaming
companies sell their games on EAs Origin. Also, EA distributes to other online shopping platforms such
as Amazon, Playstation network, Googles Playstore, Apples Itunes, Steam, Xbox Live Marketplace, etc.
4. Price
Stages of how the games prices are set:
• Development - this part is the first stage of any game, where the game is developed. Although
some games which are developed now are estimated to be from $50 million to $500 million. EAs
FIFA 16 was estimated to cost about $350 million, that will cost roughly about £60.
• Licensing – at this stage, money is spent on licensing the games intellectual properties and also
licensing the platforms in which it will be played on. Before any game is published by EA, they'd
first have to pay some money to the platforms that they are going to produce the games on. The
other part is paying for the rights to be able to use characters logos and names in the game such
as FIFA, NBA, NFL, 007 JAMES BOND etc.
32
• Marketing – this aspect is the most expensive part in publishing a game. It usually starts from
when the game is developed till it is shipped. This aspect involves advertisement, publicity and
sometimes direct marketing.
• Distribution – at this stage the game is then sold to a wholesaler. EA set the prices for the games,
and then a little bit extra is added to the price by the retailers.
According to ("Marketing Mix: EA GAMES (ELECTRONIC ARTS)", 2021), price competition and
competition itself is quiet a huge deal in the gaming industry. Its either the other is trying to outsell each
other or it's who has the best quality in terms of graphics and game play. EA is a big organisation, and
they have lots of other big organisations that they are in competition with in terms of price and quality.
One which is notable to every gamer are the first-person shooter games of Activision and EA. Activision
is also another big gaming company and they are the makers of the famous: Call of Duty franchise and
EA is also known for the making of Battlefield. Call of Duty has been at the top of First-Person Shooter
(FPS) games for some time now, but EAs Battlefield games are giving them a run for their money. This
year, EA and Activision both released their latest instalment of their various FPS games which are
Battlefield 1 and Call of Duty: Infinite Warfare. Call Of duty sold more copies but Battlefront had a lot of
good reviews.
b) Finance
The Finance team incorporates professionals in Accounting, Financial Planning and Analysis, Global
Audit, Global Strategic Sourcing, Investor Relations, Shared Services, Tax and Treasury.
The role of financial manager is to provide strategic advice and partnership to all studios and executive
leadership, lead the financial planning process, including the long-range, annual, and quarterly planning
cycles, establish and track performance measurements across all major titles and projects, provide ad-
hoc financial analysis to support EA’s partners and guidance on core finance processes, building
efficiencies and streamlining deliverables.
According to (Electronic Arts Reports Strong Q3 FY21 Financial Results, 2021),
Financial Highlights and Metrics
• Net cash provided by operating activities was $1.124 billion for the quarter and a record
$2.061 billion for the trailing twelve months.
• EA repurchased 2.5 million shares for $326 million during the quarter, bringing the total
for the last twelve months to 5.9 million shares for $695 million.
• EA paid a cash dividend of $0.17 per share during the quarter.
EA Income Statement
33
6000
5000
4000
3000
2000
1000
0
31-Mar-20 31-Mar-19 31-Mar-18 31-Mar-17
Total Revenue Net Income
period ending 31-Mar-20 31-Mar-19 31-Mar-18 31-Mar-17

Total Revenue 5537 4950 5150 4845
Net Income 3039 1019 1043 967
Gross Profit 4168 3628 3873 3562
Operating Income 1445 996 1434 1224
Source: ("Electronic Arts Financials (EA) - Investing.com", 2021)
EA Cash Flow Statement
period ending 31-Mar-20 31-Mar-19 31-Mar-18 31-Mar-17

period length 12 months 12 months 12 months 12 months
Cash From Operating Activities 1797 1547 1592 1578
Cash From Investing Activities -1357 169 622 -759
Cash From Financing Activities -1358 -1253 -643 -729
Net Charge in Cash -940 450 1693 72
According to ("Electronic Arts Financials (EA) - Investing.com", 2021), for the 39 weeks ended 31
December 2020, Electronic Arts Inc. revenues increased 3% to $4.28B. Net income decreased 71% to
$761M. Revenues reflect Live Services segment increase from $1.41B to $2.92B, Full Game Downloads
segment increase of 75% to $733M, North America segment increase of 10% to $1.88B. Net income
was offset by Other Research and development increase of 12% to $1.1B (expense), Interest and other
income (expense).
Ratio analysis
Name Company Industry
P/E Ratio TTM 35.09 53.43
Price to Sales TTM 7.18 9.02
Price to Cash Flow MRQ 24.58 46.07
Price to Free Cash Flow TTM 21.13 38.85
Price to Book MRQ 5.12 6.12
Price to Tangible Book MRQ 6.75 17.37
Quick Ratio MRQ - 2.87
34
Current Ratio MRQ 2.21 2.5
LT Debt to Equity MRQ 4.99% 61.01%
Total Debt to Equity MRQ 12.52% 67.08%
Asset Turnover TTM 0.48 0.55
Inventory Turnover TTM - 48.98
Revenue / Employee TTM 578.57K 502.43K
Net Income / Employee TTM 120.31K 61.48K
Receivable Turnover TTM 7.2 8.21
Dividend Yield ANN 0.48% 2.26%
Dividend Yield 5 Year Avg 5YA - 1.89%
Dividend Growth Rate ANN - 18.14%
Payout Ratio TTM 4.16% 56.65
Revenue by region
Geographical region Revenue (in million USD) Revenue contribution
North America 490 40.53%
International 719 59.47%
Total Revenue 1209 100.00%
Source: ("Electronic Arts Inc: Revenue by Region (2020) | Business Quant", 2021)
According to ("Electronic Arts Inc: Revenue by Region (2020) | Business Quant", 2021), Electronic Arts
Inc. has operations across four continents across the globe: Asia, Europe, North America and Australia
in sixteen different countries such as United States, Spain, Sweden, Finland, Ireland Singapore and India
to name a few.
The company attributes net revenue from external customers based on the location of the legal entity
that sells the products and/or services. For example, revenue generated by Swiss legal entity will also
include revenue from customers residing outside of Switzerland, including customer residing in Europe.
Switzerland is the major contributor of revenue in international locations. There are no other countries
with revenue greater than 10 per cent for Q2, FY20.
The company reported a 11% increase in net revenue from North America in Q2, FY20 as compared to
Q2, FY19 of which United States represented over 99 per cent. On the other hand, the international
locations reported a marginal increase of 3% in net revenue for Q2, FY20.
EA's financial performance compares with Activision Blizzard
According to ("EA - Electronic Arts Stock Competitors", 2021), 85.8% of Activision Blizzard shares are
owned by institutional investors. Comparatively, 88.0% of Electronic Arts shares are owned by
institutional investors. 1.1% of Activision Blizzard shares are owned by company insiders. Comparatively,
0.9% of Electronic Arts shares are owned by company insiders. Strong institutional ownership is an
indication that large money managers, hedge funds and endowments believe a company will outperform
the market over the long term.
Activision Blizzard currently has a consensus target price of $103.00, indicating a potential upside of
6.53%. Electronic Arts has a consensus target price of $153.3448, indicating a potential upside of 8.29%.
35
Given Electronic Arts' higher possible upside, analysts plainly believe Electronic Arts is more favourable
than Activision Blizzard.
Gross Price/Sales Net Income Earnings Per Price/Earnings

revenue ratio Share Ratio
Activision Blizzard $6.49 billion 11.54 $1.50 billion $2.08 46.49
Electronics Art $5.54 billion 7.36 $3.04 billion $4.76 29.75
Source: ("EA - Electronic Arts Stock Competitors", 2021)
Net Margins Return on Equity Return on Assets

Activision Blizzard 28.90% 19.07% 12.65%
Electronic Arts 23.51% 17.85% 12.11%
Source: ("EA - Electronic Arts Stock Competitors", 2021)
Electronic Arts has lower revenue, but higher earnings than Activision Blizzard. Electronic Arts is trading
at a lower price-to-earnings ratio than Activision Blizzard, indicating that it is currently the more affordable
of the two stocks.
Activision Blizzard has a beta of 0.71, indicating that its stock price is 29% less volatile than the S&P 500.
Comparatively, Electronic Arts has a beta of 0.92, indicating that its stock price is 8% less volatile than
the S&P 500.
Activision Blizzard pays an annual dividend of $0.41 per share and has a dividend yield of 0.4%.
Electronic Arts pays an annual dividend of $0.68 per share and has a dividend yield of 0.5%. Activision
Blizzard pays out 19.7% of its earnings in the form of a dividend. Electronic Arts pays out 14.3% of its
earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to
cover their dividend payments with earnings for the next several years. Activision Blizzard has increased
its dividend for 1 consecutive years and Electronic Arts has increased its dividend for 1 consecutive years.
Electronic Arts is clearly the better dividend stock, given its higher yield and lower payout ratio.
c) Research and Development (R&D)

Electronic Arts has a lot of growth prospects and has demonstrated this with the profitability of games on
almost all plots. The company is also providing steps to foster growth and innovation as the next
generation of consoles rolls out.
EA has subscription services that allow gamers to play with other people online, and this was especially
important during the pandemic, since many could not see each other.
The company also operates in the $1 billion esports industry. This market is expanding more and more
and is expected to grow by 60% by 2023.
According to ("Electronic Arts: It's Not Just For Kids", 2021), EA also has two catalysts that can propel
growth over the next few years:
36
• The introduction of next-gen consoles
• Electronic Arts acquisition of Codemasters
The Xbox Series X and Sony PS5 have just been released and shipped for the holiday season. These
new consoles are impacting the entire gaming industry because they provide new opportunities for
companies to create games and drive innovation. The hardware on these consoles has been enhanced
to deliver more realistic gaming graphics for a more realistic experience. Despite this, EA has always
improved the quality of the graphics to improve the gameplay. Also, to make games more immersive, EA
releases virtual reality games.
ES’s growth is also related to the acquisition of the game company Codemasters, which specializes in
the racing genre. The companies had one goal - to lead the category of racing games. EA has the Need
for Speed franchise and Codemasters can play a key role in research and development helping to make
the gameplay better.
According to ("Electronic Arts Research and Development Expenses 2006-2020 | EA", 2021), Electronic
Arts annual/quarterly research and development expenses history and growth rate from 2006 to 2020.
Research and development expenses can be defined as an expense arising from studies and product
development processes.
• Electronic Arts research and development expenses for the quarter ending December 31, 2020
were $0.451B, a 15.94% increase year-over-year.
• Electronic Arts research and development expenses for the twelve months ending December 31,
2020 were $1.712B, a 10.1% increase year-over-year.
• Electronic Arts annual research and development expenses for 2020 were $1.559B, a 8.79%
increase from 2019.
increase from 2018.
increase from 2017.
About 35% of Electronic Arts' expenses are spent on Research and Development. This figure has been
growing for the company for several years as the company invests more and more in new games and
studios. This figure is higher than that of EA's competitors. In the period from 2016 to 2019, EA's
development costs increased by 30%, but this is necessary for gaming companies so that their users
always stay close to them.
d) Operations and Logistics

A Robust Data Centre Strategy
37
Electronic Arts currently implement strategies to drive efficiencies across our data centres over which EA
has operational control, as well as work with hosting and cloud partners that have committed to powering
their data centres with renewable energy.
• Directly manage energy use for EA- owned and EA-Managed data centres, which constitutes
about 2,500 servers.
• Continue to consolidate EA- Managed data centres to fewer locations and partner with providers
that can reliably deliver our games and services
• Leverage cloud data centres
Electronic Arts is headquartered in Redwood City, CA and has 30 office locations across 17 countries:
United States, Canada, United Kingdom, Germany, France, Spain, Sweden, Switzerland, Israel,
Australia, India, China, Finland, Ireland, Romania, Singapore and Korea.
According to ("Electronic Arts Home Page - Official EA Site", 2021), as of the end of 2019, 46 percent of
EA’s workforce was located in LEEd- certified workspaces.
EA has the most immediate impact at two largest owned locations: EA’s global headquarters in Redwood
Shores, California, and EA’s studios and offices in Burnaby, British Columbia. At leased locations, EA
works with site owners and managers to reduce an impact as best they can.
Redwood Shores Burnaby

Energy and 550,000 kWh annual reduction 829,000 kWh annual reduction
Green Building from variable frequency drives from
for air conditioning. LED light retrofits, voltage
harmonizer,
and automated light sweeps.
Transportation 59 electric vehicle (EV) charging 16 EV charging stations
stations 60 employee-owned EVs
117 employee-owned EVs Employees receive subsidized
80,000 vehicle commutes public transportation, dedicated
eliminated in fiscal year 2020 carpool parking spaces, and on-
through free employee shuttle site car-sharing programs
bus
Water 5 million gallons of recycled EA is continuing to evaluate
water used annually for water reduction efforts, such as
landscaping drought-resistant landscaping
Drought-resistant plants for and low-flow fixtures
landscaping
Low-flow toilets
Waste ~10,000 lbs of waste diverted 90 percent (526,037 lbs) of waste
from landfill to recycling and diverted from landfill to recycling
composting and composting
5,323 lbs of e-waste diverted
from landfill
Source: ("Electronic Arts Home Page - Official EA Site", 2021)
EA makes environmentally conscious choices throughout the supply chain for EA’s packaged goods
products. EA most recent accomplishments include:
38
• Print legal notices on the back cover of games, which saves approximately 238,000 pounds of
paper annually.
• Eliminated use of pallet displays, including banding material.
• Decreased retail display manufacturing by 70 percent from peak.
• Ship orders via corrugated wrap versus corrugated cartons, which decreases usage of corrugated
materials by 10,000 pounds annually.
• Converted packaging materials to biodegradable air pillows, saving 3,700 pounds of paper
annually.
• Utilize print suppliers with certifications from the Forestry Stewardship Council, the Rainforest
Alliance, and the Sustainability Forestry Initiative.
Like other entertainment companies, EA's business is based on creating, acquiring, using and protecting
intellectual property. Some of the intellectual property is in the form of software code and proprietary
technologies that EA uses to develop and create games. Other intellectual property is in the form of
audio-visual elements that consumers can interact with while playing games. EA calls this form of
intellectual property “content”.
EA develops products and services based on intellectual property that EA creates in its own studios and
acquires through acquisitions. EA also obtains content and intellectual property through licenses and
service agreements. EA products used on game consoles and mobile devices include technology owned
by the device manufacturer and are licensed for use.
EA is actively involved in intellectual property enforcement. EA owns the copyright for its code and
content, as well as the trademark under which EA's products are sold.
Also, EA products are subject to unauthorized copying and piracy. EA distributes pc products using copy
protection technology and other security technology to prevent piracy and the use of unauthorized copies
of EA products.
The Operations Manager of EA manages cross organizational operations and project management. Also,
the operations manager participates in strategic decisions across all studio projects while developing
plans and implementing these plans.
e) Human Resources Management (HRM)

Electronic Arts – “We are community builders, culture activists, organizational architects, performance
managers and consultative and data driven business partners. We believe diversity and inclusion within
our organization enriches our performance and our products. We embrace outreach to our communities
across the globe. We build new behaviours to enable every employee reach their fullest potential.
Together, we foster an environment that encourages our people to pursue their passions and value
teamwork as we strive to become the world’s greatest games company.”
39
EA believes that making great games starts with developing strong leaders, which is why EA nurtures
strong leaders and managers throughout the organization. EA invests in the development and retention
of employees through training skills and access to professional growth resources.
People Manager Resources
• Provide clear descriptions of the leadership behaviours expected of all people managers.
• Implement new manager onboarding that covers manager mindset, manager expectations,
coaching, and feedback.
• Deliver in-person learning experiences focused on advocacy, development, and performance
improvement.
• Provide additional training through online manager development offerings.
Training for Specialized Roles
• EA offer learning and training in specialized roles, such as game designers, software developers,
frontline contact centre employees, and QA testers.
• EA provide access to a number of online learning resources with leading industry vendors,
including.
• EA developed a catalogue of learning materials for EA’s proprietary Frostbite game engine and
tools, serving more than 2,500 game developers at EA.
Each year, EA hosts internal learning summits, workshops, and conferences that bring together domain-
specific communities of practice from around the world.
• ANALYTICON - a multiday summit that brings together data science analysts from across the
organization.
• FROSTBITE DEV DAYS - training on our game engine and insight into our technology roadmap
for the future.
• TEAM BLUE SECURITY SUMMIT - multiday cybersecurity conference with cross-functional
hands-on training, presentations, and workshops.
EA uses engagement surveys and internal data analysis to ensure high employee productivity.
Survey results according to (Electronic Arts Inc., 2020):
• 83% of employees felt recognized for their contributions by their manager in the September 2019
Manager Survey.
• 92% of employees responded to the June 2020 Engagement Survey.
• 85% of employees stated that they intend to continue working at EA in the next 12 months in the
June 2020 Engagement Survey.
40
Electronic Arts – “We at Electronic Arts believe that equal treatment and protection as it relates to
fundamental human rights apply to every person, regardless of race or ethnicity, gender, educational
attainment, economic background or immigration status.”
SOMOS EA has partnered with RAISES, a North America-based non-profit that fights for migrant rights.
EA and RAISES organized a collection where the common goal is to raise $100,000 and EA made a first
donation of $15,000. EA also asks everyone to support immigrants and refugees from Latin America.
EA provides comprehensive benefit packages with a focus on health and well-being to help balance
career and personal life ("Electronic Arts Home Page - Official EA Site", 2021):
• Health & Wellbeing - health is the main thing, which is why EA provides access to health insurance
and its own program, with the help of which you can satisfy your needs from anywhere.
• Perks - in addition to free games, EA employees have many perks such as fitness benefits,
discount programs and more.
• Families Matter at EA - EA offer programs to help meet the needs of the family. Family benefits
include paid maternity leave, paternity leave, adoption assistance, and childcare resources.
• Time Off - EA offers paid weekends and holidays so workers can do what they really like.
• EA Global Mentoring Program- EA provides a mentoring program to accelerate personal and
career growth. The program is focused on improving individual development, expanding
knowledge and prospects for relationships in the company.
HRM manager is responsible for providing end to end HR support to several of Mobile game development
teams. HRM manager assesses the HR needs in areas such as performance management, employee
relations, compensation, career development and leadership development. Also, a manager works
closely with the Talent Acquisition, Learning & Development, and Compensation teams dedicated to the
game studio.
f) Information Systems (IS)

Electronic Arts – “Together with our game creators, we push technology forward to deliver the future of
play.”
EA strives to become leaders through unrivalled intellectual property and creativity with hundreds of
millions of players around the world. EA's goal is to push the boundaries of the industry, exceed player
expectations and blur the lines between games and reality. EA has 2,700 best-in-class technologists
working together to bring a dynamic and immersive gaming experience to life.
The main technological organization of EA consists of several teams ("Electronic Arts Home Page -
Official EA Site", 2021):
41
• EA Digital Platform (EADP) - provides centralized services that enable game teams to leverage
the power of the EA ecosystem. The EA platform, combined with multiple platforms, allows for
more meaningful relationships with players. EADP is the foundation on which EA games are built.
Game teams integrate the building blocks of high-level service platforms into their games.
• Frostbite - empowers game creators around the world to shape the future of games. EA works
with the game teams to ensure smooth collaborative development. With a passion for building
great tools, teams create games of every size, genre, and platform. EA provides powerful
processes and runtime solutions for stable play.
• EA Security - protects EA by reducing exposure to various security risks. This department also
ensures that the EA meets the required safety standards.
• EA IT - works as a global team for productive collaboration of employees in EA's business
processes and operations. EA's mission is to provide innovative technology services in areas
such as marketing, player interaction and security, working across the company to improve the
game.
According to ("Electronic Arts: Big Data and video gaming", 2021), Electronic Arts uses big data in several
ways. For example, if players get bored and stop playing, data analysis can help identify the problem and
make the game more interesting and longer. Or, if players communicate with each other via voice chat,
they tend to play longer and the analysis will help determine what features of the game encourage players
to communicate. EA's big data approach is profitable. By the end of 2014, revenue had grown 22% to
4.4 billion – the company’s highest turnover in their 30-year history. Much of this was attributed to better
customer engagement.
11. Summary of Internal Factors

As one of the leading companies in its industry, EA has numerous strengths that not only help protect
market share in existing markets, but also help penetrate new markets.
• Automation of operations has ensured consistent product quality that allows EA to scale up and
down based on demand.
• The company has a high level of customer satisfaction.
• EA has a successful go-to-market strategy for its products with reliable suppliers.
• EA has a strong portfolio of brands, investing in it for several years.
• Excellent performance and success in new markets.
• Successful experience in new product development and innovation
Like any company, EA has its weaknesses, which EA can improve using its competitive advantages and
strategic positioning.
42
• There are gaps in the company's product range that could give a competitor the opportunity to
gain a foothold in the market.
• EA has a high churn rate, which forces it to spend more than its competitors on training and
developing its employees.
• EA faces challenges in transitioning to other product segments with its current culture.
• EA's financial planning is not being done properly. Current assets ratio and liquid assets ratios
suggest that the company can use cash more efficiently.
• Investment in research and development is lower than that of the fastest growing players in the
industry. Even though EA spends more than the average on research and development, it has
not been able to compete with the leading players in the industry.
V. ANALYSIS OF STRATEGIC FACTORS (SWOT)

12. Situational Analysis
Strengths Weaknesses
Automation of operations Poor product range
High level customer satisfaction High costs of training own employees
Reliable suppliers Only one product segment due to corporate
Successful market strategy culture
Strong R&D Bad financial planning
Lower prices Poor results of investment in R&D
Opportunities SO WO
More innovations Flourishing toy production Product range improvement
New environmental policies New product category Market share gain by technology
Online platform expansion Revenue increase Financial planning development
Introduction of own toys Increase in customer base More product segments
Technological changes
Threats ST WT
New entrants Sustainable competitive Do a deep market research
Wider product range advantage Enlarge product range
Change in consumer behaviour High cost of raw materials Outsourced financial planning
Recessions in countries Loss of customers Cut unnecessary costs
Piracy Decrease in revenue
13. Review of Mission and Objectives

Electronic Arts (EA) Mission Statement
“At EA, we thrive on outrageous thinking. It’s the fuel that inspires the best games in the world. We are a
community of artists, storytellers, technologists and innovators working in one of the most dynamic
industries today. We’re building a company that thinks about the player experience at every step. We are
transforming for a digital future and work as one team. Our creative work environment rewards new and
different ideas. It’s an environment that attracts brilliant talent from around the globe. No matter which of
our studio locations you join, you’ll feel the energy and support of EA’s global brand, while thriving on our
world-class campuses. At EA, the excitement you feel throughout each workday is made possible by a
culture that inspires you to do the best work of your career. For years, we’ve been building a company
43
where amazing minds thrive. We take risks and we dream big. And together, we are changing the way
millions play every day.”
Electronic Arts Inc's mission statement is a public document that outlines the company's principles and
strategic goals. Electronic Arts Inc's mission statement also explains the reason for the company's
existence, emphasizing the services and goods it provides. In addition, the mission statement outlines
Electronic Arts Inc's organizational targets, the procedures the company employs to accomplish desired
objectives, the target customer segments, and the area in which the business operates.
• Customer satisfaction
Electronic Arts Inc's mission statement emphasizes the importance of customer loyalty. Electronic Arts
Inc's mission statement identifies its specific customer segments, as well as their desires and
expectations. The mission statement explains how the company's goods and services contribute to
increased customer loyalty among its target audience.
• Insightful and encouraging
Electronic Arts Inc's mission statement is motivating in that it encourages staff and the workers to give
their best effort toward the company's goals. In addition, statement is also inspiring in that it encourages
individuals to evolve and improve – not just for the benefit of the organization, but also for their own
personal development.
• Based on core competencies
Electronic Arts Inc's mission statement is focused on its core strengths and competencies. This is crucial
for Electronic Arts Inc because the mission statement would demonstrate the various structures and
procedures, as well as strategic strategies, that the business employs to meet its operational and
strategic objectives. The success of Electronic Arts Inc's goals will be determined by how well it utilizes
its core competencies.
Objectives of Electronic Arts
Electronic Arts Inc's organizational priorities are the short- to medium-term expectations and goals that
the company sets in order to accomplish its long-term specific priorities. The organizational priorities are
crucial in deciding how Electronic Arts Inc allocates resources as well as the strategies, schedules, and
procedures that are enforced.
• Unique
Electronic Arts Inc has set specific and transparent goals for itself. This aids workers and managers in
managing and maintaining emphasis on the goals and end results that must be met. Specific goals also
assist managers in determining professional development and training requirements within their divisions.
• Timely
44
Electronic Arts Inc's objectives are often time-bound in the sense that they have a start and end date.
The objective's timeliness helps Electronic Arts Inc retain a sense of urgency among employees, keeping
them motivated to meet the target.
VI. STRATEGIC ALTERNATIVES AND RECOMMENDED STRATEGY

14. Strategic Alternatives
Current or amended objectives could be fulfilled by putting current techniques into practice with greater
care with improvement for future trends of Electronic Arts.
Live Services
EA emphasizes several objectives that the company focuses on in the future. The company has
implemented different monetization models. They include subscription-based services as Netflix does,
purchasable extra content within a game, and other types of monetization other than direct sales of video
games. EA (Electronics Arts, 2020) mentions that this is how its revenues generated from live services
business looked like within 2018-2020 period:
2018 2019 2020

PC and console games 2.083 million 2.216 million 2.813 million
EA also provides extra content that can be bought that can provide value and enhance the gameplay
experience. EA mentions that players, who play games for a long time, are interested in purchasing the
extra content. For example, players are able to purchase Ultimate Team mode in popular sport franchises
of EA. This mode allows them to gather a football team of existing and ex-professional athletes. EA
(Electronics Arts, 2020) reports that the Ultimate Team service’s net revenue was the following (the
majority portion of which was generated thanks to FIFA Ultimate Team):
2018 2019 2020

PC and console games 1.180 million 1.396 million 1.491 million
To focus on subscription-based business model, EA announces that it will combine its EA Access and
Origin Access into one EA Play (Alexander, 2020). Previously subscription on EA Access was 4.99 USD
per month or 29.99 USD per year, whereas Origin Access was 14.99USD per month or 99.99USD per
year. EA believes it will be easier for consumers to search for products in one platform and hence buy
subscriptions. It is an important step of EA to its subscription-based business, as audience will be looking
at one service by EA rather than browsing two services to find the desired products. In addition, EA
started subscription business on its Steam (the biggest video game e-retailer) page, which diversifies the
marketplaces, where it can promote its subscription-based business.
45
Digital Deliveries
The outbreak of COVID-2019 pandemic had a negative effect on brick-and-mortar retail shops all of the
world. GameStop – the biggest brick and mortar video game retailer – has been experiencing tough times
due to the pandemic. It reported net loss of 19 million USD in the third quarter of 2020 and closed down
783 physical stores in last two years (Valentine, 2020). It means that more and more people are
purchasing video games through e-commerce platforms like Steam and EA’s Play (previously, EA
Access and EA Origin). On the other hand, sales of physical game discs are declining in the case of EA
(Electronics Arts, 2020). EA reported the following figures that depict the net revenue of physical and
digital copies in 2018-2020:
2018 2019 2020

Digital Copies 707 million 680 million 809 million
Physical Copies 1.700 million 1.240 million 1.223 million
EA reports that almost half of the EA game sales were digital in Xbox and PlayStation stores. Digital
sales were accounted for 39% in 2018, and it became 49% in 2019 and 2020 (Electronics Arts, 2020).
EA believes that the proportion of digital sales as well as life service revenues will increase in the long-
run. EA hopes that it will allow to increase the gross margin, as costs associated with physical discs are
higher than digital copies.
Correa (2020) states that Sony and Microsoft felt pressure during the pandemic and were not sure if they
could produce the next generation consoles, whereas EA promoted “Stay Home, Play Together” initiative.
It announced digital sales due to which its digital sales continued to grow. 25 million players played FIFA
20, 10 million players were playing Star Wars Jedi: Fallen Order, and Apex Legends hit the records for
being the most downloaded F2P (free-to-play) game on PlayStation 4.
Free-to-play
The recent trend of game industry shows that the free-to-play business model is emerging and becoming
more popular. Especially it is popular in mobile game industry, where players can try games for free and
purchase life services and additional content. EA also introduced this model in both mobile and PC and
console games. EA’s mobile titles have been operating in this model, whereas its recent Apex Legends
(a Battle Royale game similar to Fortnite by Epic Games) has also implemented this model. EA aims
additional purchasable content in PC and console and mobile games to be its important chunk of the
business (Electronics Arts, 2020). Coulson (2021) states that EA’s only 26% of the revenue was
generated from the game sales itself. Other revenue came from extra content (DLC), life service, mobile,
and microtransactions (Ibid.). Apex Legends was an absolute hit, where its 7th season accounted for 12
million players per week.
46
Free-to-play model is becoming more popular among big game companies. The example of Call of Duty
Warzone (by Activision Blizzard) showed how a AAA quality free-to-play game can be successful (Fahey,
2021). Ubisoft declared that it would be working more on free-to-play games rather than AAA single
player games (like Assasin’s Creed franchise) (Ibid.). However, despite of big studios are looking towards
free-to-play type of models, there are single player titles that have been extremely popular during recent
period (e.g. Sony’s exclusive Spider-Man and Final Fantasy 7 remake). It means free-to-play games are
next trend that big companies will be implementing while releasing traditional paid games.
Concentration on EA’s most popular titles
EA focuses on its most popular franchises that have gathered audience from all over the world. EA’s
dramatic part of revenue has been generated by these titles. FIFA is EA’s most purchased game and its
revenue takes place a significant part of the overall revenue of the company. As it was mentioned before
FIFA 20 had 25 million unique players all over the world, and continues to be most successful franchise
of EA Sport (Electronics Arts, 2020). Therefore, concentration on this title is important for EA.
Repeating Revenue Sources
EA’s main focus is the games that have been popular and it will be working on these titles rather
developing new franchises (Electronics Arts, 2020). EA believes that the revenues from base game sales,
life services from existing projects will be greater than new titles. EA states that the main reason for
developing a new game is the extent to which there will be opportunities for recurring revenues.
Alternative Strategies
In this section, the possible corporate strategies will be discussed in the case of EA. Corporate strategies
can be stability, growth, and retrenchment depending on what objectives companies are pursuing. Each
strategy has its advantages and disadvantages and should be chosen carefully on the basis of the current
state of the corporation. Since EA is a corporation which operates as game developer and publisher of
the companies it bought, it has to develop the corporate strategy as well.
Al-Durra and Jaradat (2014) state that stability strategy is implemented if a company focuses on
remaining in its current state of the development and does not pursue developing fast. In this type of
strategy, a company focuses on its existing resources and operations avoid growth and expansion.
Companies believe this course of action prevents any risks that might be costly for them (Alshawabkeh
et al., 2019). The companies aiming stability strategy want to finetune their existing operations and grow
step by step. Their purpose is to serve to the same market and deliver the same products; they try to
adopt incremental improvements to its operations and narrow down their scope of products so that they
can have competitive advantage. This course of action is good for stable environments and external
factors do not threaten companies very much and companies can focus their operations more closely.
This type of strategy is good for small and niche business entities. Although this strategy can be
implemented by a big corporation like EA as well, but EA needs to combine it with other types of growth
47
strategies. As it was mentioned above, EA’s main sport franchises (e.g., FIFA and Madden NFL) do not
require groundbreaking innovations. EA releases these games every year and despite of minor
improvements, games’ core concept has not been changed much so far. EA mentions it continues to
concentrate in these games in its Annual Report.
Stability strategy does its drawbacks as well. Old-fashioned managers might think it is risky to develop
new products and try to implement new business models and avoid to do so. Consequently, this business
entity might lack behind the industry (Govind Ballabh Pant Social Science Institute (n.d)).
Growth is a corporate strategy that is aimed to reach new levels higher than the existing ones
(Alshawabkeh et al., 2019). This might involve expanding operations locally and/or internationally
(Durmaz and Ilhan, 2015). Companies develop new types of products, penetrate new markets to grow.
Merger and acquisitions can be a good example to growth strategy, when a big company acquires smaller
ones to achieve mutual goals (Ibid.). Companies also try to grow vertically trough establishing or
purchasing specific business areas of the industry they operate (Ibid.).
EA has already established international presence and continues to grow. Asian markets have become
desirable place to operate for companies. The success of World of Warcraft in China had favorable
impact on the current state of Activision Blizzard. EA also started to promote its products in Chinese
markets through local publisher Tencent.
EA also invests in new project. New trends show that Battle Royale games are extremely popular (e.g.,
Call of Duty Warzone by Activision Blizzard, Fortnite by Epic Games, PlayerUnknownsBattleGround by
Bluehole and etc.) and EA also entered this market with its Apex Legends and it also became popular.
EA occasionally buys smaller studios as well. The most recent purchase of Codemasters adds games
such as Formula One, Dirt, and Grid (racing games) into EA’s portfolio (Handrahan, 2020). It is believed
that Codemasters will get EA’s marketing support, whereas EA will enlarge its portfolio with new racing
games (Ibid.). Batchelor (2021) states EA also has bought Metalhead Software (i.e., Super Mega
Baseball series developer). This deal brings new baseball-based video games under EA’s banner. EA
also made another step into mobile gaming by purchasing Glu Mobile (Sinclair, 2021). EA representatives
state that none of the existing projects of Glu Mobile will be shut down (Ibid.).
EA also established its platform where players can buy games and subscriptions (EA Play). At the same
time, it launched subscription services on Steam as well. It allows EA provides additional alternatives for
its customers to access its products through any platform they want.
However, according to Thompson et al., (2016) states that companies should not chase after growth only
for the sake of growth, but this strategy needs to be justified and add value to the shareholders.
Retrenchment strategy involves cutting back assets and cost of the company to survive hard times (Jamal
and Salisi, 2021). The companies running retrenchment strategies might sell tangible assets, lay off
employees, and shutting down products and businesses which are no longer profitable for the company
48
(Ibid.). EA has a long history of running retrenchment strategy by closing down child studios for not being
successful. EA closed down Origin Systems in 2000s because its Ultima IX was unsuccessful and
cancelled all the projects the studio was working on (Ackerman, 2002). EA also closed down Westwood
because EA was not satisfied with the products (Parker, 2003). EA laid off 200 employees of Pandemic
Studio and closed down the studio (Crecente, 2009).
Previous studies showed that retrenchment strategies (reducing assets and costs) have a positive and
significant impact (Dodge et al., 1994; DeWitt, 1998). Morrow et al. (2004) in growing industries, cost
retrenchment will not have positive impact on the performance and asset retrenchment have positive
impact on the performance. However, if the industry is in a decline, asset retrenchment impacts
performance negatively and cost retrenchment impacts positively. EA should consider these aspects of
the retrenchment strategies while implementing them.
Companies use generic strategies to obtain a competitive advantage in the marketplace. In marketplaces
with various price-sensitive buyers, pointing to be the industry's generally low-cost provider is a
successful competitive technique. When a trade gets to be the market's lowest-cost provider, rather than
fair one of various rivals with low costs, it accomplishes low-cost leadership. The objective of a cost
leadership strategy to realize a competitive advantage through cutting costs.
Electronic Arts’ major generic competitive strategy in numerous buyer sections is cost leadership.
When a Low-Cost Provider Strategy Is the Most Effective
• The price war between rival suppliers is fierce. Low-cost providers are able to win on price
aggressively, gaining market share at the expense of competitors, winning the business of price-
sensitive clients, remaining profitable despite fierce price rivalry, and surviving price competition.
This technique empowers EA to extend market share by centering on the middle class, which accounts
for the lion's share of the buyer market blend in most countries. The estimating issue is regularly
exceptionally critical to middle-class shoppers, and cost leadership is the most excellent choice for
assembly their needs.
• Switching purchases from one vender to another is inexpensive for buyers. Low exchanging costs
permit buyers to move buys to lower-cost suppliers with comparable items or to more alluringly
estimated substitutes. A low-cost leader is in a great position to use low costs to convince potential
clients to switch to their brand.
Electronic Arts puts a focus on the cost and accessibility of its products around the world, which leads to
increased brand recognition and revenue growth, as well as a strong competitiveness. EA as often as
possible offers discounts and coupons to reach deals targets and bargain with competitive weight from
its nearest competition, in addition to charging low prices through cutting production costs and
49
maximizing supply chain productivity. These discount and promotional efforts are implied to raise brand
awareness and stimulate consumption.
Drawbacks when trying to be a low-cost provider
• Getting overwhelmed with incredibly harsh price lowering is perhaps the biggest mistake a low-
cost service can make. Increased unit sales and market share do not always imply increased
earnings. Lowering the price improves profitability only if it boosts sales volume enough to
compensate for the revenue loss owing to a reduced margin on each item sold.
• A second blunder is depending on a cost-cutting strategy that rivals may simply replicate. If
competitors find it reasonably simple or affordable to copy the leader's low-cost approaches, the
leader's advantage will be too fleeting to provide a significant competitive advantage.
In a case of EA, the second drawback is the most likely to appear. Electronic Arts competitors also
produce games and may reduce the price of certain released products following EA, if that particular
action would affect their sales. In this case, ownership of price leadership becomes meaningless.
Alternative #1
As a result, one of the most vulnerable cost-cutting options for Electronic Arts is to give free or low-cost
versions of downloadable items as demonstrations and prototypes before the entire package is released.
Customers must be given the opportunity to see new products through the Web, such as the Xbox Live
or PlayStation networks, for a sensible and critical charge. Since virtual demo models are as well
burdensome to handle, this progresses marketing methods. In that case, Electronic Arts will use strategy
of cost eldership also by strengthen functional strategy by influencing on marketing process. The
company's previous marketing techniques of allowing pre-views of prospective items have enabled it to
avoid the requirement to sell the full version. Prototypes/demonstrations are a fantastic test for future
expectations and the potential to alter products, in addition to minimizing marketing costs and strategic
demands.
A broad differentiation approach is the best characterization of EA and the video game computer industry
at all in terms of business strategy. The producers are able to market their items by providing a
differentiated product to their clients. EA separates their product offerings by dividing them into four
market segments, each with its own individual brand name. EA Sports, EA, EA Sports BIG, and POGO
are EA's four main brands, each of which caters to a specific market area. For many years, EA Sports
has been a mainstay of the company. Many "franchises" games, such as Madden NFL, Tiger Woods
PGA golf, World Cup soccer, and others, are among them. Need for Speed, The Sims 2, and the Harry
Potter series are all part of EA's portfolio. EA Sports BIG is for arcade-style sports games that strive to
be more outrageous than factual. POGO is EA's online and downloadable division, which includes both
freeware and subscription-based digital services (Depersio, 2021).
50
The actions and goals allocated to various departments that support company and business level
objectives are known as functional level strategies. These strategies define the desired outcomes to see
from specific divisions (or functions) of company's everyday operations.
Alternative #2
Corporate and business objectives frequently necessitate the involvement of numerous functional areas,
so functional level strategies should reflect this (e.g., HR, R&D, etc.). As a result, the company strategy
of gaining market share through marketing and production efficiency will be continued. Video game
players, on the other hand, do not tend to have strong brand loyalty to specific game manufacturers,
such as Electronic Arts. Unlike automobile consumers, who are often loyal to either Chevy or Ford,
gamers simply need the best games and are unconcerned about who makes them. It's hard to find a
gamer who supports EA but avoids Activision. Therefore, strengthen marketing as brand promotion is
not suitable for EA. EA can't depend on its brand title to offer it a competitive advantage. The firm
must proceed to make cutting-edge video games and advertise them productively to the
gaming populace. For two decades, EA's Madden franchise has been the gold standard for
football recreations. The game is chosen by players as it is the most complex football computer game
available, not because it is produced by EA.
EA must maintain its sports dominance while expanding its adventure gaming portfolio, which is now
dominated by Activision Blizzard's "Call of Duty" and "World of Warcraft."
15. Recommended strategy

A large corporation with international presence like Electronic Arts needs combine different strategies
while adopting them into different business units. For example, stability strategy is good for its sport
projects. EA states that their main the revenues generated from sport-based video games (FIFA, Madden
NFL, and etc.) accounts for significant part of the company’s performance. EA releases these games
every year by adding increment updates and generates revenues from game sales and live services. For
this part of the business, we think a stability strategy is suitable for EA.
EA also constantly runs merger and acquisition policy and purchases small developer companies. The
recent deals show that EA is mainly focused racing and sport games and purchased Codemasters and
Metalhead Software. We believe EA feels more comfortable releasing sport and racing games due to its
competence in such games (FIFA, Madden NHL, Tiger Woods Golf, Need for Speed series). Therefore,
it acquires companies developing sport games. In addition, EA increases its presence in mobile game
industry by acquiring Glu Mobile. This kind of acquisitions can be beneficial as the acquired companies
get marketing support and resources, and the acquiring company increases its portfolio with new projects
and revenue. In these cases, growth strategy can be handy for Electronic Arts.
51
Retrenchment strategy helps companies to increase their performance by cutting its assets and costs.
As it was mentioned above, EA implemented these strategies by closing down studios which were no
longer profitable and/or laying off employees. However, EA needs to be careful while implementing these
strategies, as the condition of the industry is a major factor which determines whether retrenchment is
feasible or unfeasible in a specific case.
Previously, EA was accused of not being able to meet consumer expectations and implementing harmful
methods of monetization (Tassi, 2017). EA adopted pay-to-win scheme in its Star Wars and Battlefield 2
franchises, where players were required to buy in-game assets to be able to win the games (Ibid.).
Players critiqued EA for microtransactions and eventually EA had to cancel them in these games (Fritz
and Needleman, 2017). EA should prevent negative user experience and communicate with its audience
via feedback channels (Teeter and Lundford, 2019). In addition, EA has an audience who plays its
successful franchises and ready to buy them every year. It is vital to keep players to buy games in
repetitive manner, because the development of game series is less costly than developing total new
games (Roberto and Carioggia, 2014).
In the long-run, EA needs to continue working on its EA play platform. The entertainment industry is
moving into this direction, as every big company is running its own streaming service (e.g., HBO Max
and Amazon Prime). The case of Netflix and Spotify showed that subscription-based system is the new
trend (Teeter and Lundford, 2019). Game companies are also adopting these strategies step by step.
EA Play is a piece of software that will allow players to buy games and in-game assets, subscriptions,
and other types of life service. EA want to increase the online delivery of the games. The company also
generates revenue through offering live services in mobile games. EA needs to follow gaming trends in
the industry and should catch-up. Free-to-play games are popular now. Activision Blizzard favored by
the popularity of its Call of Duty Warzone and thus, EA has launched Apex Legends. Apex Legends
found its target audience and became popular. Kaine (2017) states that subscriptions, live steaming,
mobile gaming are aspects of gaming that the industry moves towards. Therefore, EA should closely
investigate changing trends of gaming industry.
Also, when proposing a possible growth strategy for Electronic Arts, one cannot but take into account
core competency of a company. A core competency is a business competency that is critical or important
to the company's overall effectiveness and results. This could easily be a core strength if the company
presents itself to the market as a high-quality items’ manufacturer, because the capacity to consistently
supply high-quality items is critical to its business model. Electronic Arts’ core competence is publishing
games (Katkoff, n.d.). Therefore, millions of people play EA’s games. The company also successfully
implemented its core competence in mobile game industry and released hits with millions of downloads
(Katkoff, n.d.). The development of new games and purchase of small studios seems to be a good growth
strategy, as these projects can favor thanks to EA’s core competence.
52
Capabilities decide whether or not a company can maintain a competitive advantage. A company's
capabilities come in a variety of shapes and sizes. The major distinction in terms of strategy is distinct
competencies. Distinctive capabilities are traits of a corporation that cannot or can only be copied with
extreme effort by rivals, even after these rivals have realized the benefits they provide to the originating
organization.
There are many different types of distinguishing abilities. Government licenses, constitutional monopolies,
and successful patents and copyrights are all examples of unique capabilities. The main distinctive
competency of EA is its exclusive rights with sport industry to use real athletes’ appearance, brands and
logos of the real sport teams in their games. Enomoto (2018) states EA is an aggressive player in sport
licensing deals. The author mentions that no company other than EA has rights to use real teams and
players in their games. Both NFL and NCAA football has licensing with EA (Ibid.). Batchelor (2021) states
that EA has gained more exclusive licensing for the Champions League, the Europa League, and Super
Cup with UEFA than its rival Pro Soccer Evolution by Konami. Since EA has grown to the second biggest
game company, it has strong brand identity and this also one of the distinct competencies of the company.
Companies in competitive marketplace, on the other hand, have developed incredibly effective
idiosyncratic traits.
VII. CONCLUSION
Analysts predict that demand for new consoles will propel the gaming industry past the pandemic. The
video game industry had a banner year in 2020, thanks to an increase in demand for home entertainment
caused by the coronavirus pandemic. Analysts believe that the current trend would increase demand for
new gaming consoles. Activision Blizzard Inc., Electronic Arts Inc., and Take-Two Interactive Software
Inc., all major U.S. game publishers, beat earnings estimates in the September 2020 quarter. Despite
the fact that the three companies' full-year guidance has been boosted through 2020, executives have
consistently warned that 2021 is unpredictable and that they are unlikely to hit the heights reached during
the pandemic, which culminated in stay-at-home orders in many parts of the world. In the coming weeks,
EA will release its holiday quarter earnings results, and analysts expect the company to beat its
December 2020 and full-year 2020 estimates. Although EA maintained its lead among the major US
game publishers in the September 2020 quarter, with its Call of Duty franchise thriving. Total net sales
increased by 52.4 percent to $1.95 billion, while net income increased by 196 percent to $604 million.
Net bookings, which include both digital and physical goods and services, increased by 46% to $1.77
billion. The company raised its full-year 2020 guidance as a result of this development.
53
REFERENCES
1. Ackerman, K. (2002). Frictionless Insight. Retrieved 16 May 2021, from
http://www.frictionlessinsight.com/archives/2002/03/interview-with.html Ackerman, K. (2002).
Frictionless Insight. Retrieved 16 May 2021, from
http://www.frictionlessinsight.com/archives/2002/03/interview-with.html
2. Al-Durra, A., & Jaradat, N. (2014). Strategic management. Jordan, Amman: Dar Wael for
Publishing and Distribution.
3. Alexander, J. (2020). EA Access and Origin Access will combine under new EA Play banner.
Retrieved 16 May 2021, from https://www.theverge.com/2020/8/14/21368737/ea-access-origin-
subscription-rebrand-exclusives-price-drop
4. Allen, A., Blakeman, L., & DeMaiolo, ,. EA Games Competitive Analysis: Porter’s Five Forces
Model of Competition. Retrieved 16 May 2021, from
https://danieljosephdemaiolo.files.wordpress.com/2011/10/ea-games-case-2.pdf
5. Alshawabkeh, Z. A. E., Aldiabat, B. F., Al-Zubeidi, M. A., Nsour, B. H., Al-Shalabi, F. S., Al-
Momani, R. Z., ... & Al-Abbadi, L. H. M. (2019). Stability Strategy and Its Direct Role in
Achieving Competitive Advantage at Jordanian Communication Companies. Academy of
Strategic Management Journal
6. Andrew Wilson - Biography. (2021). Retrieved 11 May 2021, from
https://www.marketscreener.com/business-leaders/Andrew-Wilson-4838/biography/
7. Andrew Wilson (businessman) - Wikipedia. (2021). Retrieved 11 May 2021, from
https://en.wikipedia.org/wiki/Andrew_Wilson_(businessman)
8. Andrew Wilson. (2021). Retrieved 11 May 2021, from
https://www.intel.com/content/www/us/en/newsroom/biographies/biography-andrew-wilson.html
9. AusGamers™ Pty Ltd. (2009). Pandemic Brisbane Shut Down - AusGamers.com. Retrieved 16
May 2021, from https://www.ausgamers.com/news/read/2707354
10. Batchelor, J. (2021). EA acquires Super Mega Baseball developer Metalhead Software.
Retrieved 16 May 2021, from https://www.gamesindustry.biz/articles/2021-05-05-ea-acquires-
super-mega-baseball-developer-metalhead-software
11. Batchelor, J. (2021). EA extends UEFA exclusivity, working on multiple FIFA mobile games.
Retrieved 16 May 2021, from https://www.gamesindustry.biz/articles/2021-02-02-ea-extends-
uefa-exclusivity-working-on-multiple-fifa-mobile-games
12. Blake Jorgensen - Biography. (2021). Retrieved 11 May 2021, from
https://www.marketscreener.com/business-leaders/Blake-Jorgensen-6013/biography/
13. Bureau of Economic Analyses, Gross Domestic Product, First Quarter 2021 (Advance
Estimate). Retrieved from Bea.gov: https://www.bea.gov/sites/default/files/2021-
04/gdp1q21_adv.pdf
14. Business Leaders and top investors hot news. (2021). Retrieved 11 May 2021, from
https://www.marketscreener.com/business-leaders/Leonard-Coleman-001SYG
54
15. Chris Alumni, Digital Innovation and Transformation, Electronic Arts: Game On - Digital
Innovation and Transformation. Retrieved April 27, 2018, from: https://digital.hbs.edu/platform-
digit/submission/electronic-arts-game-on/
16. Common Organizational Structures | Principles of Management. (2021). Retrieved 13 April
2021, from https://courses.lumenlearning.com/wm-principlesofmanagement/chapter/common-
organizational-structures/
17. Corporate Culture - Encyclopedia - Business Terms. (2021). Retrieved 13 April 2021, from
https://www.inc.com/encyclopedia/corporate-culture.html
18. Correa, L. (2020). EA Digital Sales Continue to Climb. Retrieved 16 May 2021, from
https://gamerant.com/ea-digital-sales-climb-2020/
19. Coulson, J. (2021). Just 26% Of EA's Revenue Now Comes From Game Sales. Retrieved 16
May 2021, from https://www.thegamer.com/26-ea-revenue-game-sales/
20. Create Advantage Inc. distinctive competency. Retrieved 16 May 2021, from
https://managingresearchlibrary.org/glossary/distinctive-competency
21. Crecente, B. (2009). Confirmed: EA Closes Pandemic Studios, Says Brand Will Live On.
Retrieved 16 May 2021, from https://kotaku.com/confirmed-ea-closes-pandemic-studios-says-
brand-will-5406830
22. Decentralisation of Authority: Introduction, Characteristics, Principles, Factors. (2021).
Retrieved 13 April 2021, from
https://www.economicsdiscussion.net/management/decentralisation-of-authority/31898
23. Depersio, G. (2021). Porter's Five Forces and Electronic Arts (EA). Retrieved 16 May 2021,
from https://www.investopedia.com/articles/markets/012716/analyzing-porters-five-forces-
electronic-arts-ea.asp
24. Dewitt, R. (1998). Firm, industry, and strategy influences on choice of downsizing
approach. Strategic Management Journal, 19(1), 59-79. doi: 10.1002/(sici)1097-
0266(199801)19:1<59::aid-smj934>3.0.co;2-2
25. Dodge, H., Fullerton, S., & Robbins, J. (1994). Stage of the organizational life cycle and
competition as mediators of problem perception for small businesses. Strategic Management
Journal, 15(2), 121-134. doi: 10.1002/smj.4250150204
26. EA - Electronic Arts Stock Competitors. (2021). Retrieved 15 April 2021, from
https://www.marketbeat.com/stocks/NASDAQ/EA/competitors-and-alternatives/
27. Ebony. (2021). Retrieved 11 May 2021, from
https://books.google.co.uz/books?id=6GntfRruQ7IC&pg=PA116&redir_esc=y#v=onepage&q&f=
false
28. Electronic Arts (Company) - Giant Bomb. (2021). Retrieved 13 April 2021, from
https://www.giantbomb.com/electronic-arts/3010-1/
29. Electronic Arts Executives - Official EA Site. (2021). Retrieved 11 May 2021, from
https://www.ea.com/executives
55
30. Electronic Arts Financials (EA) - Investing.com. (2021). Retrieved 15 April 2021, from
https://www.investing.com/equities/electronic-arts-inc-financial-summary
31. Electronic Arts Home Page - Official EA Site. (2021). Retrieved 20 April 2021, from
https://www.ea.com/
32. Electronic Arts Inc 's (EA) Suppliers by Company, Division and Industry - CSIMarket. (2021).
Retrieved 21 April 2021, from https://csimarket.com/stocks/suppliers_glance.php?code=EA
33. Electronic Arts Inc. - Corporate Governance - Board of Directors - Person Details. (2021).
Retrieved 11 May 2021, from https://ir.ea.com/corporate-governance/board-of-directors/person-
details/default.aspx?ItemId=7f747b3d-c1b0-4fe6-a71e-7beb4b7b3f19
34. Electronic Arts Inc. - Corporate Governance - Board of Directors. (2021). Retrieved 11 May
2021, from https://ir.ea.com/corporate-governance/board-of-directors
35. Electronic Arts Inc. (2020). Impact Report.
36. Electronic Arts Inc. | Company Profile | Vault.com. (2021). Retrieved 14 April 2021, from
https://www.vault.com/company-profiles/computer-software/electronic-arts-inc
37. Electronic Arts Inc. 2020 Annual report. (2020). Retrieved 12 May 2021, from
https://sec.report/Document/0000712515-20-
000019/#i3ad0c1e7bdd74cefb54ba7157a7887f8_16
38. ELECTRONIC ARTS INC., UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549Form 10-K , ELECTRONIC ARTS INC.2020 FORM 10-K ANNUAL
REPOR for the fiscal year ended March 31. Retrieved 2020, from:
https://sec.report/Document/0000712515-20-000019/#ea-20200331.htm
39. Electronic Arts Inc: Revenue by Region(2020) | Business Quant. (2021). Retrieved 15 April
2021, from https://businessquant.com/electronic-arts-revenue-by-
region#:~:text=Electronic%20Arts%20Inc.%20has%20operations,India%20to%20name%20a%
20few.
40. Electronic Arts Reports Strong Q3 FY21 Financial Results. (2021).
41. Electronic Arts Research and Development Expenses 2006-2020 | EA. (2021). Retrieved 20
April 2021, from https://www.macrotrends.net/stocks/charts/EA/electronic-arts/research-
development-expenses
42. Electronic Arts SWOT Analysis Matrix [step by step] Weighted SWOT. (2021). Retrieved 21
April 2021, from http://fernfortuniversity.com/term-papers/swot/1433/543-electronic-arts.php
43. Electronic Arts, Careers at Electronic Arts - Start your Job Search - An Official EA. Retrieved
2021, from: https://www.ea.com/careers
44. Electronic Arts, Impact Report 2020. Retrieved 2020, from:
file:///C:/Users/%D0%A0%D1%83%D1%81%D0%BB%D0%B0%D0%BD/Downloads/2020-
impact-report.pdf
45. Electronic Arts: Big Data and video gaming. (2021). Retrieved 20 April 2021, from
https://www.bernardmarr.com/default.asp?contentID=701
56
46. Electronic Arts: It's Not Just For Kids. (2021). Retrieved 20 April 2021, from
https://seekingalpha.com/article/4397375-electronic-arts-not-just-for-kids
47. Enomoto, J. (2018). A Virtual Sports Licensing Monopoly Will Save Electronic Arts Inc. Stock.
Retrieved 16 May 2021, from https://investorplace.com/2018/05/ea-stock-sports-licensing/
48. Fahey, R. (2021). Ubisoft's free-to-play turn could be the new normal for big franchises |
Opinion. Retrieved 16 May 2021, from https://www.gamesindustry.biz/articles/2021-05-14-
ubisofts-f2p-turn-could-be-the-new-normal-for-big-franchises-opinion
49. Govind Ballabh Pant Social Science Institute (n.d). GROWTH STRATEGIES-I. Retrieved 16
May 2021, from http://gbpssi.in/admin/coursepack/MBR616Lect05.pdf
50. Handrahan, M. (2020). EA agrees $1.2 billion acquisition of Codemasters. Retrieved 16 May
2021, from https://www.gamesindustry.biz/articles/2020-12-14-ea-agrees-usd1-2-billion-
acquisition-of-codemasters
51. Heidi J. Ueberroth - Biography. (2021). Retrieved 11 May 2021, from
https://www.marketscreener.com/business-leaders/Heidi-Ueberroth-008VQF-E/biography/
52. How Big Are R&D Costs For Electronic Arts?. (2021). Retrieved 20 April 2021, from
https://www.forbes.com/sites/greatspeculations/2020/12/30/how-big-are-rd-costs-for-electronic-
arts/?sh=3bf0b3f11752
53. Jay Crandall Hoag - Biography. (2021). Retrieved 11 May 2021, from
https://www.marketscreener.com/business-leaders/Jay-Hoag-002FXV-E/biography/
54. Jeffrey T. Huber - Biography. (2021). Retrieved 11 May 2021, from
https://www.marketscreener.com/business-leaders/Jeffrey-Huber-06ZBWH-E/biography/
55. Kate Lister, President of Global Workplace Analytics, Global Analytics, Work-at-Home After
Covid-19—Our Forecast - Global Workplace Analytics. Retrieved 2020, from:
https://globalworkplaceanalytics.com/work-at-home-after-covid-19-our-forecast
56. Katkoff, M. (2021). EA Mobile: Can the Giant Climb to the Top? — Deconstructor of Fun.
Retrieved 16 May 2021, from https://www.deconstructoroffun.com/blog/2017/8/10/what-should-
ea-mobile-learn-from-zynga
57. Kenneth Moss - Biography. (2021). Retrieved 11 May 2021, from
https://www.marketscreener.com/business-leaders/Kenneth-Moss-19750/biography/
58. Larry Probst - Wikipedia. (2021). Retrieved 11 May 2021, from
https://en.wikipedia.org/wiki/Larry_Probst
59. Laura Miele, Electronic Arts Sees Social Features as the Future of Gaming, Bloomberg - Are
you a robot? Retrieved 19 June 2020, from Bloomberg.com:
https://www.bloomberg.com/news/articles/2020-06-19/electronic-arts-sees-social-features-as-
the-future-of-gaming
60. Lawrence Probst - Biography. (2021). Retrieved 11 May 2021, from
https://www.marketscreener.com/business-leaders/Lawrence-Probst-4065/biography/
57
61. Leonard S. Coleman Jr. - Wikipedia. (2021). Retrieved 11 May 2021, from
https://en.wikipedia.org/wiki/Leonard_S._Coleman_Jr.#Early_life_and_education
62. Luis Antonio Ubinas - Biography. (2021). Retrieved 11 May 2021, from
https://www.marketscreener.com/business-leaders/Luis-Ubi-as-0731VW-E/biography/
63. Luis Ubiñas - Wikipedia. (2021). Retrieved 11 May 2021, from
https://en.wikipedia.org/wiki/Luis_Ubi%C3%B1as
64. Macrotrends research, Electronic Arts: Number of Employees 2006-2020. Retrieved 2020, from:
https://www.macrotrends.net/stocks/charts/EA/electronic-arts/number-of-employees
65. Marketing Mix: EA GAMES (ELECTRONIC ARTS). (2021). Retrieved 14 April 2021, from
http://fredericosei.blogspot.com/2016/11/marketing-mix-ea-games-electronic-arts.html
66. Mitchell Grant, Switching Costs, Retrieved December 22, 2020, from Investopedia:
https://www.investopedia.com/terms/s/switchingcosts.asp
67. Morrow, J., Johnson, R., & Busenitz, L. (2004). The Effects of Cost and Asset Retrenchment on
Firm Performance: The Overlooked Role of a Firm’s Competitive Environment. Journal Of
Management, 30(2), 189-208. doi: 10.1016/j.jm.2003.01.002
68. Mr.Daco, U.S. Economy’s Strong Start Signals a Stellar Year. Retrieved 2021, from
Nytimes.com: https://www.nytimes.com/2021/04/29/business/economy/united-states-gdp.html
69. Needleman, S., & Fritz, B. (2017). Electronic Arts Pulls Microtransactions From ‘Star Wars
Battlefront II’ After Fan Backlash. Retrieved 16 May 2021, from
https://www.wsj.com/articles/electronic-arts-pulls-microtransactions-from-star-wars-battlefront-ii-
after-fan-backlash-1510936871
70. Parker, S. (2003). EA consolidates studios, closes Westwood. Retrieved 16 May 2021, from
https://www.gamespot.com/articles/ea-consolidates-studios-closes-westwood/1100-2909852/
71. Pinchefsky, C. (2013). EA CEO Steps Down, Citing Financial Results. But Is SimCity the Real
Issue?. Retrieved 16 May 2021, from
https://www.forbes.com/sites/carolpinchefsky/2013/03/18/ea-ceo-steps-down-citing-financial-
results-but-is-simcity-the-real-issue/?sh=26903b85509c
72. Public Affairs Kauffman Foundation Written by Keith Mays Director of Editorial, Gaming at the
speed of innovation. Retrieved April 8, 2019, from Kauffman.org:
https://www.kauffman.org/currents/gaming-at-the-speed-of-innovation-electronic-arts/
73. Richard A. Simonson - Biography. (2021). Retrieved 11 May 2021, from
https://www.marketscreener.com/business-leaders/Richard-Simonson-065D9M-E/biography/
74. Robert Alumni, Technology and Operations Management, EA: The Next Generation for Video
Games - Technology and Operations Management. Retrieved November 16, 2016, from:
https://digital.hbs.edu/platform-rctom/submission/ea-the-next-generation-for-video-games/
75. Roberto, M., & Carioggia, G. (2004). Electronic Arts. Boston, MA: Harvard Business School
Pub.
76. Schatz, J. (2020). Electronic Arts Inc. Fiscal Year 2020 Proxy Statement and Annual Report.
58
77. Talbott Roche - Biography. (2021). Retrieved 11 May 2021, from
https://www.marketscreener.com/business-leaders/Talbott-Roche-09XN96-E/biography/
78. Teeter, T., & Lunsford, R. (2019). Electronic Arts: Strategic Differentiation in the Global Video
Gaming Industry. SSRN Electronic Journal. doi: 10.2139/ssrn.3459606
79. Thompson, A. (2021). Crafting and Executing Strategy (20th ed.). Columbus: McGraw-Hill US
Higher Ed USE.
80. Valentine, R. (2020). GameStop has closed 462 stores so far this year, 783 in last two years.
Retrieved 16 May 2021, from https://www.gamesindustry.biz/articles/2020-12-08-gamestop-
has-closed-462-stores-so-far-this-year-783-since-last-year
81. Zacks Equity Research, if you invested $1000 in Electronic Arts a Decade Ago, This is How
Much It'd Be Worth Now, Yahoo is now a part of Verizon Media. Retrieved 2021, from
Finance.yahoo.com: https://finance.yahoo.com/news/invested-1000-electronic-arts-decade-
123012765.html
82. Zahermanesh, A. (2018). Strategic Analysis of Electronic Arts. Prague.
83. Zippia the career expert, 19 Electronic Arts Careers & Jobs, Zippia.com. Retrieved 2012, from:
https://www.zippia.com/electronic-arts-careers-3798/
59

Report dallasBuyersClub

Uploaded by

Copyright:

Available Formats

You might also like

Report dallasBuyersClub

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Report dallasBuyersClub

Uploaded by

Copyright:

Available Formats

Strategic Audit Report

Inha University in Tashkent

Course Name: Business Strategy

Professor’s name: Azizbek Marakhimov

Ten Janna U1911113

I. CURRENT SITUATION ...................................................................................................................................... 3

• Microsoft and Sony

• App Stores from Apple, Google, and Others.

• Asia's Publishing Partners.

II. CORPORATE GOVERNANCE

Lawrence Probst (Chairman)

Current positions of Lawrence Probst

Electronic Arts Inc. Chairman 2015

Name Equities % Valuation

Electronic Arts Inc. (EA) 485,898 0.17% 65,776,012 USD

Andrew Wilson (Chief Executive Officer& Director)

Current positions of Andrew Wilson

Intel Corporation Independent Director 2017

Electronic Arts Inc. Chief Executive Officer & Director 2013

Electronic Arts Inc. (EA) 136,716 0.048% 18,507,245 USD

Kenneth Moss (Chief Technology Officer)

Current positions of Kenneth Moss

Electronic Arts Inc. Chief Technology Officer 2014

Electronic Arts Inc. (EA) 170,553 0.059% 23,087,760 USD

Blake Jorgensen (Chief Operating & Financial Officer)

Current positions of Blake Jorgensen

Electronic Arts Inc. Chief Operating & Financial Officer 2018

Name Equities % Valuation

Electronic Arts Inc. (EA) 28,893 0.010% 3,911,245 USD

Luis Antonio Ubiñas (Lead Independent Director)

Current positions of Luis Antonio Ubiñas

Electronic Arts Inc. Lead Independent Director 2015

Tanger Factory Outlet Centers, Inc. Independent Director 2019

Boston Private Financial Holdings, Inc. Independent Director 2017

FirstMark Horizon Acquisition Corp. Independent Director 2020

FirstMark Horizon Acquisition Corp. 30,000 0.29% 315,600 USD

Electronic Arts Inc. (EA) 0 0.0000% 0 USD

Source: ("Luis Antonio Ubinas - Biography", 2021)

Leonard S. Coleman (Independent Director)

Current positions of Leonard S. Coleman

Electronic Arts Inc. Independent Director 2001

Hess Corporation Independent Director 2016

Omnicom Group Inc. Lead Independent Director 2015

Santander Consumer USA Holdings Inc. Independent Director 2021

Electronic Arts Inc. (EA) 36,240 0.013% 4,905,809 USD

Omnicom Group Inc. (OMC) 33,663 0.016% 2,496,111 USD

Hess Corporation (HES) 17,033 0.0055% 1,205,255 USD

Jay C. Hoag (Independent Director)

Current positions of Jay Crandall Hoag

Netflix, Inc. Lead Independent Director -

Electronic Arts Inc. Independent Director 2011

Zillow Group, Inc. Independent Director 2005

TripAdvisor, Inc. Independent Director 2018

TCV Acquisition Corp. Chairman 2021

Name Equities % Valuation

Alarm.com Holdings, Inc. (ALRM) 537,298 1.08% 46,411,801 USD

Electronic Arts Inc. (EA) 208,106 0.072% 28,171,309 USD

Zillow Group, Inc. (Z) 58,098 0.034% 7,531,825 USD