EA 1995 Essay

Submitted By Liyuan-Luo
Words: 467
Pages: 2

(1) What has EA overall business strategy been?
EA’s business strategy is to concentrate on developing new technology games that will attract buyers.

(2) What is EA's technology strategy? How does technology strategy tie in to its business strategy? Clearly distinguish between technology and business strategy.
a) EA’s technology strategy: EA build a unique culture that attracted, developed and retained the best production talent in the industry. EA would strive to nurture its software designers through intrinsic and extrinsic; EA would design software only for PC market; EA would produce applications for a number of PC systems; EA would outsource all manufacturing and assembly of its software, producing in-house only the set of master diskettes, documentation, and packaging.
b) By the technical progress and innovation, EA offer more sophisticated products to consumers and businesses.
c) Technology strategy is different to mainstream business strategy because it needs to comprehensively accommodate uncertainty. It focuses attention on how resources, capabilities, and processes are best developed and deployed to meet business objectives. Formulation and application of technology strategy are bounded by the firm’s culture, norms, and value.

(3) Do an industry analysis of the hardware for the gaming industry using the Porter Five forces model. Has the overall structure of the industry changed? Explain.
An industry analysis of the hardware for the gaming industry using the Porter Five forces model.
a) Industry Rivalry. By the end of 1994, at least five companies had announced that they would launch 32-bit or 64-bit video game platforms in the US: 3DO, Atari, Sega, Nintendo and Sony. In the mid-1990s, many companies jostled for position in a world where the PC, the telephone, and the television set linked into a full service interactive network.
b) Threat of