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Strategic Vision

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Acting On a Strategic Vision
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Case Questions 1. SWOT analysis
SWOT analysis is a business tool that helps a corporation of any size to assess its viability. The tool helps to identify major pros and cons in the industry of choice. The SWOT analysis assesses strengths, weaknesses, opportunities and weaknesses for the business. The tool is a great tactic that can be used to identify the state of a market or industry at any point in time.
For this case, the company that is given consideration is Electronic Arts. The company was established in 1982 under the operating name Amazin’ software. The company changed the name to Electronic Arts and continued to develop games and sell games. In the decade between 1980 and 1990 the company enjoyed major success in the gaming industry. At the end of 1989, the company had become a publicly traded company. The revenues of the company increased from an average one hundred and thirteen million dollars to two hundred and ninety eight million dollars within two years from 1991. The success continued until 2006, when they were knocked off the number one spot by a rival named Activision.
The SWOT analysis is a tool that could have been used to help Electronic Arts to strengthen their position in the gaming industry. The application of the SWOT tool would have analyzed the market trend, the competition, the internal structure of the company, weaknesses of the company, the innovative opportunities available, and also identify the direct threats in the market. The SWOT analysis tool could have helped the company identify the impeding danger from Activision. The company could have identified an opportunity to take advantage. The tool could have helped identify the internal crisis early and correctional action be taken to help the company maintain their lead in the industry. 2. Porter’s Generic Strategies
Porter suggested and published his ideas in 1980. Porter analyzed the market of interest, the structure of the company and the price as aspects that could influence the triumph or downfall of a company. The three factors provided by porter needed to be mixed in the right ratio so as to prove successful for the company. Porter provided three strategies that he thought would prove successful in the industry regardless of size, resource, type and venture of any company.
Porter put across the first as a company that served major segments of the industry by providing a low price to price out the competitor. Here, the focus is on price leadership strategy. The second is a strategy that requires one to serve different segments by developing a variety of products for the segments. It is focused on differentiating between different consumers. The final option requires identification of a niche segment to serve and then providing better products of the best quality and then raising the price. The strategy is focused on the consumer segment.
The theory by Porter can be used to identify the problem in Electronic Arts that exposed them to the downfall. Electronic Arts practice had major flaws in that they did not identify with any of the above strategies. There is no one strategy that is identifiable to the company. The company did not analyze the market well enough to know the demands of it, instead they rolled out every game that became popular and focused on the sequel. The best strategy for Electronic Arts would have been to identify the best strategy and focus on it. 3. Miles and Snow typology applied to Activision Blizzard
Activision Blizzard is the company that knocked Electronic Arts off the perch in top spot in the gaming industry. The company used the strategy of promoting the creative talent of top developers in the industry. It identified and acquired the shops and studio for gaming developers. It sponsored the maneuvers of each shop independently and the shop existed as an autonomous body but operating under Activision Blizzard. The studios developed were encouraged to maintain their own standards while integrating under the brand name of Activision Blizzard. The studios developed their own financial statements which were submitted to the parent company for analysis and compilation. The strategy boosted the company to manufacture a range of games instead of depending on some flagship games to sell sequels. The innovative strategy improved the position of the company in the industry and this boosted it the top spot.
Maintenance of the top spot can be a major challenge for the company. Application of Miles and Snow typology will help identify a strategy that will continue the stay at the top. The gaming industry is one that requires innovation at every juncture. Either way, the company should continue to maintain the success achieved by the products that the company has already produced and sold. Miles and snow suggested four strategies that are characteristic of any company in any industry. The four are defenders, prospectors, reactors and analyzers. Defenders try to maintain the triumph by focusing on their successful product. Prospectors depend on identifying trend and innovation to stay ahead while reactors have no specific strategy but they look to the market for suggestions. The strategy that will most suit the Activision Blizzard Company will be the analyzer. It will help to focus on the successful strategies and then continue sponsoring creative projects by the developers that they continue to sponsor. More studios should be acquired but the existing ones should continue to be sponsored. 4. Start-up gaming company to compete with Electronic Arts and Activision Blizzard
One of the best ways for a startup company to compete against the industry leader is to focus on producing a product a cheaper price. The Electronic Arts and Activision Blizzard companies are setting the prices in the industry. For the start-up company setting the price below the leading companies’ prices will help the company become noticeable to the public. By use of the ideas put across by Porter in 1980, the company should focus on price leadership. The gaming industry is full of consumers ready to try something new. Producing something new in the industry will attract the consumer and if not that, then the price will be good for the consumer.
The reading from Miles and Snow requires that a company identify a strategy from the beginning. The company has to continue sponsoring new ideas because the market is ready for new products. The distribution is a major contributing factor to be analyzed in the strategy. The distribution channel will matter most to the company. Good distribution will assist the company. 5. Activision Blizzard’s attractiveness
For a gamer, there are a number of characteristics that will attract an individual towards their products. First, the fact that the company is constantly producing games of very high quality throughout the year is very attractive. The company has a dedicated team of programmers who are capable of producing creative games that are interesting to the gamer. The second attraction for a gamer is the distribution of the game by Activision. The company has a very good distribution channel that ensures the game is close to the gamer for their pick. The availability of the games is a very key characteristic for the gamer. Another advantage for the Activision company is the fact that they allow their programmers to work on projects and individually mention their names in the packaging. Some gamers are interested in the person producing the game and thus this will attract more gamers.
For non-gamers, there are other characteristics to pick from such as the fact that the company recorded top sales in the year by analysis of the revenue collected. The company is always attractive if it is making money and outdoing the other companies in the industry. The other success marker is the fact that the company has a good public image. The company relies on good public image to attract more people to the company. Programmers want to join the company so that they can enhance their creativity through the support system in the company. The company is able to sponsor individual projects of programmers and encourages them to maintain the standards. Another advantage that keeps the company at the top is the fact that they have branches or studios everywhere in the country. Therefore accessing the company is not very difficult. People who may want to visit and talk to people in the company are at an advantage. 6. Three goals to repair Electronic Arts image and 6 month tactical plan Goals a. Provide a tangible vision for the employees
The vision will be to provide better working conditions and improving support for the programmers working for the company. The largest loss for Electronic Arts is the fact that they did not offer support to programmers after their projects had exhausted their success boom. b. Holding gaming conferences
The gaming conferences will act as talent search tactics. The move will boost the image of the company because people and the media companies will turn out to enjoy the experience. Talented programmers will turn out to showcase their ideas and also make acquaintances with others working for the company. c. Sponsor programming schools in the country
The tactic will require public events in schools to recognize contributions from the company. Contributions will be to provide the computer labs with equipment such as computers and installing basic software for programming.
Six-Month Tactical Plan to Improve the Image
The third option will be utilized to improve the image of the company. The company will choose the schools to sponsor the activities. The first month will be utilized to pick out the schools that will participate in the promotion. A maximum of two schools in each of the states will be selected. The first month will end with a national announcement of the move to the public using selected disbursement media.
The next six months will be spent touring the country with programmers and various managers of the company. The strategy will sponsor events of selected schools and also construct computer laboratories for the schools. Another key strategy will be to offer summer internship programs for the younger generation training to be programmers. Following the strategy will ensure success in the industry for Electronic Arts and the image will improve.

Reference
Griffin, R., W. (2012). Management 11th ed. South - Western Cengage Learnin.

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