Running head: CASE ANALYSIS
1
Module 2: Case Analysis
Dawn B Black
MKTG524
January 19, 2018
Dr. Anne Gottfried
CASE ANALYSIS
2
Case Analysis
This analysis examines the elements of the external environment of the Electronic Arts
video game industry by means of a PESTLE analysis to determine what shapes competitiveness
in the industry. The analysis defines key factors of success in the market, how value is created,
and the structure of the value chain. Because the market in the video game industry is made up
of varied smaller markets, the analysis also identifies competitive best practices.
As one of the leading global interactive entertainment software companies, it is
essential that Electronic Arts (EA) Inc. recognize the political, economic, social, technological,
legal, and environmental factors outlining what is happening in the gaming industry (“EA”,
2018). After reading the assigned article and researching the external environment of the
gaming industry and the EA organization, the following PESTLE analysis reflect some of the
factors that affect the company’s ability to function.
EA PESTLE
Political
Economical
Various government regulations and
industry laws (i.e. censorship)
Seasonal industry
Household income
Social
Technological
Changes in gamer demand
Upgrades
Competitor development
Legal
Environmental
Intellectual Property
Licensing
Digital conversion
Political
CASE ANALYSIS
3
Before EA enters or invests in a gaming market, it is imperative that they research
government regulations and industry laws. For example, censorship is always in question for
the gaming industry. It seems legislators are eager to fight for gaming censorship on behalf of
the public. Including recent propositions to the federal, state and local governments to regulate
violent video games (Thierer, n.d.). To appeal to the public and avoid government censorship, in
1994, the gaming industry established the Entertainment Software Rating Board (ESRB). The
ESRB applies different rating symbols and content labels that refer to violence, sex, language,
substance abuse, gambling, humor and other potentially sensitive subject matter (“ESRB”,
2018). The system rate games through self-regulation.
According to “EA” (2018), “EA engages in policy discussions and the political process
