Strategic Management – An Analysis of the Video Games Industry and Nintendo’s Opportunity in China Executive Summary Despite being one of the largest video game corporations in Japan and in the world, Nintendo has seen its own sales and financial performance crumbling in … (adsbygoogle = window.adsbygoogle || []).push({}); PESTEL analysis provides great detail about operating challenges Game Digital Plc will face in prevalent macro environment other than competitive forces. Further, EA is a strong brand name. Cuts down my effort to surf through heaps of redundant data.-Alexandra MookiMajor in Business Administration, Carnegie Mellon University, This website has an amazing support team. It includes video game consoles, game software, handheld devices, mobile games and online games. In case you need the complete report please purchase using the buy options displayed. PESTEL analysis PESTLE analysis is called sometimes as PEST analysis. Return on Equity is above 28%; Operating Margin is above 22%. Good digital presence: Digital net revenue increased to $2.41 billion in 2016 which represented 55% of net revenue for the fiscal year 2016. Car industry is fast moving toward automation led by technology firm such as Google & manufacturing is disrupted by Tesla, which has stated an electronic car revolution. Good business growth with strong market position: The Company has experienced a sound growth. Article continues after ad Industrial safety regulations in the Consumer Services sector. Reach thousands of academicians and corporates. Some of the legal factors that Game Digital Plc leadership should consider while entering a new market are -, Order custom Harvard Business Case Study Analysis & Solution. Some of the important franchises that it caters to include Need for Speed, Plant Vs. Zombies, FIFA, Star Wars, Battlefield, The Sims and Madden NFL. While micro environment factors such as competition norms impact the competitive advantage of the firm. Similarly a lot of European countries give healthy tax breaks to companies that operate in the renewable sector. For example in United States – Texas and Florida have different liability clauses in case of mishaps or environmental disaster. Trade regulations & tariffs related to Consumer Services, Pricing regulations – Are there any pricing regulatory mechanism for Consumer Services, Wage legislation - minimum wage and overtime. Electronic Arts SWOT and PESTLE analysis has been conducted by Partha Protim Pegu and reviewed by senior analysts from Barakaat Consulting. The following political external factors are significant in Sony’s case: 1. European Protectionism laws and trade tariffs: The European Union’s protectionism laws make it difficult for smooth conduction of business which involves blocking of certain internet sites. They are just awesome. 5. Level of corruption - especially levels of regulation in Consumer Services sector. Infrastructure quality in Retail industry. Tough Competition from rival companies, 1. USD 4.9 billion - FY ending 31st March 2019 Product labeling and other requirements in Retail. It is a concept referred on the marketing objectives and policies that determine various impact and policies of the company. Grow your business. Video Game Industry Analysis. Copyright of Electronic Arts SWOT and PESTLE Analysis is the property of Barakaat Consulting. Find industry analysis, statistics, trends, data and forecasts on Video Games in the UK from IBISWorld. It includes video game consoles, game software, handheld devices, mobile games and online games. PESTEL stands for - Political, Economic, Social, Technological, Environmental & Legal factors that impact the macro environment of Game Digital Plc. Please refer to the Terms and Conditions and Disclaimer for usage guidelines. have to be kept in mind when gaming companies develop their products. Political. Strategic Management Essays, Term Papers & Presentations. They may have to reduce the investments now. H.R. With the age of the average video game player on the rise the gaming industry has created new niches that desire a more demanding adult gaming experience. Five Forces Analysis of the Video Game Industry The video game industry is the economic sector involved with the development, marketing and sale of video and computer games. All rights reserved. Powerful investment in the R&D: Ea has devoted considerable resources to research and development to maintain its competitive advanatge. Also President Donald Trump’s Trade tariffs can have an impact on the cost of consoles and other hardware which are mostly manufactured abroad. These features are the graphics and rendering capabilities an… Video games have a tendency to play with the emotions of people which inturn can threaten peace and law, a country being multicultural. Class structure, hierarchy and power structure in the society. It has a strong mobile, social and MMO presence. Do you want us to design a market survey or write a market research report as per your specific requirements? The company headquarters are located in Redwood City, California. The key competitors develop new games with better features. * By clicking on "Buy Now" you agree to accept our ". ET Copyright laws Counterfeit or copied video games and software are prohibited in several countries including the UAE. The company games can be directy purchased through its direct-to-consumer platform, Origin or through third party retailers and platforms like the Apple Store and Google Play Store. Good diversity of games on multiple platforms, 1. This tool is especially useful when starting a … December 2, 2012. Currently, there are three main home videogame consoles competing in the market, which are Sony … Game Digital Plc can closely analyze the following factors before entering or investing in a certain market-. This report is shared in order to give you an idea of what the complete SWOT & PESTLE analysis report will cover after purchase. Electronic Arts was founded on May 28, 1982 by an Apple employee Trip Hawkins and was significant for being one of the first companies to produce games for home computers. Electronic Arts ( EA ) Investor Presentation / Slideshow / Electronic Arts Inc ( NASDAQ : EA ) / Seeking alpha -https://seekingalpha.com/article/4194482-electronic-arts-ea-investor-presentation-slideshow. Even within a country often states can have different environmental laws and liability laws. Technological upgrades to meet demands. Apart from those EA offers many free to play games. . Electronic Arts has made significant investments in order to establish publishing networks and game studios. Entrepreneurial spirit and broader nature of the society. This aspect of the PESTEL/PESTLE analysis considers the influence of governmental activity on the remote or macro-environment of the company. Dec. 2, 2020. (adsbygoogle = window.adsbygoogle || []).push({}); The Macro environment factors such as – inflation rate, savings rate, interest rate, foreign exchange rate and economic cycle determine the aggregate demand and aggregate investment in an economy. structure of this industry, technology, policy, culture influence the online game industry.‖ Although online games began to appear in China in the late 1990s, they did not make a real breakthrough until 2001. This section is available only in the 'Complete Report' on purchase. It started an above average profitability operations in Argentina and made strong returns in 5-7 years. USD 5.1 billion - FY ending 31st March 2018 EA’s R&D venture as a profit of sales is one of the highest in the gaming industry. Dec. 15, 2020. With this activity, you can […] Joost 3SSN. It has strong relations in the supply chain and has strengthened its position in the market by buying publishers and Developer’s studios. Government intervention in the free market and related Consumer Services. How to increase brand awareness through consistency; Dec. 11, 2020 4. Political conditions affect the markets where Sony operates. 2. Copyright, patents / Intellectual property law. 1. We invest deep in order to bring you insightful research which can add tangible value to your business or academic goals, at such affordable pricing. It has a P/E ratio of 36.76 as compared to the industry ratio of 53.43. Over the last 5 years the industry has been transforming really fast, not even giving chance to the established players to cope with the changes. Need Strategic Analysis for this company? For example an Industry may be highly profitable with a strong growth trajectory but it won't be any good for Game Digital Plc if it is situated in unstable political environment. PEST analysis on video game industry is implemented on the followed context. We invest deep in order to bring you insightful research which can add tangible value to your business or academic goals, at such affordable pricing. Changes in the macro-environment factors can have a direct impact on not only the Game Digital Plc but also can impact other players in the Retail. According to “Ukie”, two-fifths of the game companies in UK are considering moving their operations abroad. The macro environment entails the industries, companies, competitors and the clients of a particular industry. Government regulations and political sanctions: Government regulations and industrial laws vary from country to country. Anti-trust law in Retail industry and overall in the country. We make the greatest data maps. Our insightful and holistic reports have helped corporates, academia and researchers take their research forward. Instead, it produces games for display on other consoles, PCs, CD-ROM players, mobile phones and tablets. These factors determine the extent to which a government may influence the economy or a certain industry. PESTEL or PESTLE analysis, also known as PEST analysis, is a tool for business analysis of political, economic, social, and technological factors. Education level as well as education standard in the Game Digital Plc ’s industry, Culture (gender roles, social conventions etc.). The described SWOT-analysis only lists the S-W-O-T factors. This report is shared in order to give you an idea of what the complete SWOT & PESTLE analysis report will cover after purchase. Since then, the Chinese online game industry has been growing rapidly. Economic factors that Game Digital Plc should consider while conducting PESTEL analysis are -, Society’s culture and way of doing things impact the culture of an organization in an environment. Prezi Video + Unsplash: Access over two million images to tell your story through video Fern Fort University. Game Digital Plc is operating in Retail in more than dozen countries and expose itself to different types of political environment and political system risks. Blog. that shape strategy and competitive landscape. A firm should carefully evaluate before entering such markets as it can lead to theft of organization’s secret sauce thus the overall competitive edge. The PESTLE analysis for Electronic Arts is presented below: Copyright © 2020. 669, the “Protect Children from Video Game Sex and Violence Act” was introduced by Representative Joe Baca. Diversity of games on multiple platforms: Electronic Arts produces the maximum number of titles in a year on all platforms. A PESTEL analysis or PESTLE analysis (formerly known as PEST analysis) is a framework or tool used to analyse and monitor the macro-environmental factors that may have a profound impact on an organisation’s performance. Spanish oil giant Repsol had to face a similar instance. All Rights Reserved by Barakaat Consulting. This will certainly have an impact on all the platforms. Porter Five Forces Electronic Arts is an American video game company that only deals in the software of videos and computer games. The truly creative process is confronting the SW and OT in a matrix. The detailed complete set of references are available on request in the 'Complete report' on purchase. Before entering new markets or starting a new business in existing market the firm should carefully evaluate the environmental standards that are required to operate in those markets. Firstly, technology in the video game industry is very vital. Reach thousands of academicians and corporates across the globe. The factors that affect the macro environment are technology, economic conditions, legislation and regulation, population demographics and societal values. Top Quality. Political stability and importance of Retail sector in the country's economy. Customized Solutions Political stability of biggest markets (opportunity) 2. They have a broad target segment with their extensive game selection which appeals to all gender and age groups. The macro-environment factors can impact the They helped me with my custom research and delivered before time! In 2016, Electronic Arts were forced to cut off the number of gamers in Iran, Myanmar, North Korea, Sudan, Syria, and Ukraine (Crimea region) who were under international sanctions and it was considered illegal to conduct business with their citizens. Of Porter's five forces, industry competition represents the biggest threat to … Some societies encourage entrepreneurship while some don’t. You also agree to receive email updates from us on our new reports and solutions. PEST Analysis of UK console games industry. Political factors include tax policies, Fiscal policy, trade tariffs etc. Comparative advantages of host country and Consumer Services sector in the particular country. Due to this, the platform automatically sells because these gamers want to experience and play these exclusive games. Essay on Pestle analysis of UK mobile industry The United Kingdom plays a very important role in the European mobile market as it accounts for a total of 12.9% market value (Datamonitor 2008). Unlike the giants of video game producers, Electronic Arts does not possess its own proprietary hardware for the display of the games. Type of economic system in countries of operation – what type of economic system there is and how stable it is. How has Volkswagen’s business strategy evolved post the emissions scandal? Electronic Arts Inc. Fiscal Year 2016 Proxy Statement and Annual Report - https://s22.q4cdn.com/894350492/files/doc_financials/annual/2016/2015_Proxy_Statement_and_Annual_Report.pdf, 4. You can use the following in your reference section in order to give credit to the source. Different Government regulations and Industrial Laws in different countries, 1. Changes in the macro-environment factors can have a direct impact on not only the Game Digital Plc but also can impact other players in … The video game industry (formally referred to as interactive entertainment) is the economic sector involved with the development, marketing and sale of video and computer games. Shared beliefs and attitudes of the population play a great role in how marketers at Game Digital Plc will understand the customers of a given market and how they design the marketing message for Retail industry consumers. Industry Competition. Political factors play a significant role in determining the factors that can impact Game Digital Plc's long term profitability in a certain country or market. Send your data or let us do the research. The SWOT analysis for Electronic Arts is presented below: This is the sample complete report which will give you a glimpse of what your complete report will cover after purchase. Exclusive games – A huge advantage in the SWOT analysis of Sony PlayStation is the list of exclusive games which are available on the PS only. Attitudes (health, environmental consciousness, etc. Industry background The video game industry (formally referred to as interactive entertainment) is the economic sector involved with the development, marketing and sale of video and computer games.It includes video game consoles, game software, handheld devices, mobile games and online games.The video gaming industry has been growing exponentially in recent years. Increasing governme… Press Release Video Game Music Market 2020, Global Trends, Opportunity and Growth Analysis Forecast by 2026 Published: Dec. 2, 2020 at 2:38 a.m. On purchase, the report will reach your email inbox within minutes. Pestle and SWOT analysis of the Video Game Industry with a Five Forces analysis of Electronic Arts Andres Cordova, Andrew Martinez, Chase Omagari, Sergio Figueroa CIS 3100.06 TuTh 5:30pm - 6:45pm California State Polytechnic University, Pomona Technology analysis involves understanding the following impacts -, Different markets have different norms or environmental standards which can impact the profitability of an organization in those markets. EA has four segments under its label: EA Games, EA Sports, EA Maxis, EA Interactive and EA BioWare. that a government may levy around the fiscal year and it may affect the business environment (economic environment) to a gre… Are you looking for a report which is not covered on our website? At rare times, a slight delay not exceeding 4 hours might be caused. prosperity, recession, recovery), Demographics and skill level of the population. Pest Analysis Of Gaming Industry PESTANALYSISA PEST(Political, Economic, Social and Technological) analysisis a major part ofthe environmental scanning section of strategic management and it is used by companies during market research and strategic analysis. Buy Professional PPT templates to impress your boss. Political environment consists of laws, government agencies, and pressure groups that influence and limit various organizations and individual. Amazing Business Data Maps. Game Digital Plc PESTEL analysis is a strategic tool to analyze the macro environment of the organization. Taxi industry is now dominated by players like Uber and Lyft. 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