Strengths
Excellent customer service: EA is known by its consumers to have one of the best customer service centers. This allows EA to build rapport with its consumers and inspire brand loyalty.
Market superiority: EA was incorporated in 1982 and has been in the market for over 30 years. This has allowed EA to build a reputable brand that inspires trust and loyalty from its customers.
Gaming franchises: EA has created an extensive portfolio with many popular gaming franchises, including FIFA, Madden, The Sims and more. These franchises always keep their consumers waiting and returning for the next generation.
Weaknesses
Focus on microtransactions: Many of EA’s consumers have become annoyed with its focus on in-game purchases and loot boxes. Its focus on getting consumers to make additional purchases has resulted in a weakened customer loyalty base.
Lack of innovation: EA has succeeded with many franchises but has yet to develop fresh game ideas and games that appeal to the younger audience.
High production cost: EA incurs significant upfront costs in game development before making revenue. However, innovating and creating new games becomes risky, as success is never guaranteed.
Opportunities
Rising esports industry: The esports industry is expected to see revenue growth of 14.6% from 2024 to 2028. This leaves much room for EA to expand its portfolio and increase its loyal customer base.
New technologies: New technologies are constantly being invented every year. EA can use these new technologies to innovate and create new and exciting products to create hype around its company.
Mobile Gaming: As mobile gaming continues to increase in popularity, EA can create new mobile gaming apps and easily transportable hardware, enhancing the user’s experience.
Threats
Highly saturated market: EA is in a very competitive market, making competing and differentiating itself difficult. If EA falls behind its competitors in innovation or its ability to stay relevant, it could negatively impact the company.
Game pirating: Just like movies, many games are pirated off the internet that consumers play for free. If this trend continues to increase, EA will lose a lot of potential revenue, potentially resulting in bankruptcy.
Gaming regulations: If gaming regulations are implemented and there are heavy restrictions on the types of content that companies can make, it could severely affect the entire industry and result in a massive revenue loss for EA.
Disclaimer: I have no affiliation with Electronic Arts. This is strictly for academic purposes.