Identify and describe EA’s value chain and value chain costs

* Discuss whether EA has evolved any of its activities into competencies that pretend the company a competitive advantage. determine ChainValue Chain describes the activities within and around an placement which together create a product or service.Primary activities are directly concerned with the origination or delivery of a product or service.Support activities help to improve the effectiveness of competency of primary activities.(Johnson, Scholes & Whittington, 2005)Value Chain in EA for Creating ValuePrimary ActivitiesIn-bounds* EA is able to negotiate pot discounts with console makers (Sony & Nintendo) that supplied the CDs and DVDs.Operations* EA has a virtuous strategy for the plot creation and evaluation.* State-of-the-art tools use to will for more cost-effective product maturation and to efficiently convert games designed on one game platform to other platforms. (Compatibility of games)* Have a strong relationship with console manufacturers.* Has an edge on its co mpetitors that no other game parcel company has EAs ability to localize games or to launch games on octuple platforms in multiple countries in multiple languages.* Strong alliance with Cinema, Sports & other entertainment companies.* EA invested heavily in the development of tools and technologies that would facilitate the creation of new games for the existing (and future) game-playingOut-bounds* Proud of games, i.e. family entertainment games for video game consoles, PCs, mobiles, pile held and online.Marketing & Sales* Boost its budgets for marketing and advertising, particularly TV advertising.* Electronic arts marketing its products general under four brand logos EA Sports, EA Sports Big, EA Games, and Pogo. ( diversification of games)* Has a good relation with mass market retailers (like Wal-Mart, Toys R Us, Best Buy and so on), getting more shelf space for its games.* EAs games available in approximately 80,000 retail locations worldwide.Services* Manufacturers guarante e* Launching game patches for extending games including new missions and characters.Support ActivitiesProcurement* License agreements to create software games with the console manufacturers. (Sony, Microsoft, Nintendo etc.)* Agreement with the America Online (AOL), to be exclusive provider of a broad aggregation of online games. man Resource Management* Focused strategy is in place for human resource management and development. EA invests succession and money in training people, and retaining and developing them.* Offer healthy working environment, providing Gym, Sports Pitch, Coffee Bar etc.* Present and former staff has praised Larry Probsts leadership for his ability to motivate and energize people.InfrastructureWe can reason EAs infrastructure in three ways* Product Structure Making products for Video consoles, Hand held, unstable games, and Software games.* Geographical Structure Two major design studios in Vancouver and Los Angeles and smaller design studios in San Franci sco, Orlando, London, and Tokyo.* Functional Structure Employees tend to be specialist in the business functions important to EA, such as manufacturing, marketing, finance, and human resources.Technology Development* State-of-the-art tools use to allow for more cost-effective product development and to efficiently convert games designed on one game platform to other platforms.* Electronic Arts has a reputation for new product development and creativity.Linkages* License with the console makers for creation of software games and as well getting discounted supply of CDs, DVDs or optical disks.* Geographical infrastructure allows EA to localize its games.* Rewording people creates more productivity from the employeesFrom the honour chain in EA, it points out that how the nurse creates and how these activities relate to the cost reduction. EA must musical accompaniment maintaining and improving these values-create activities.Unique ResourcesUnique Resources are those resources that critically underpin competitive advantage and that others can non easily imitate or obtain. (Johnson, Scholes & Whittington, 2005)The Unique Resources OF EA* Acquisition of design studios world wide, to localize its games.* Heavily invested in R & D, facilitate the creation of new games for the existing and future game-playing* The commonality fleet* EA website Pogo.com* The motivations among EA staff cell nucleus Competence nerve competences are the activities and processes through which resources are deployed in such a way as to achieve competitive advantage in ways that others can not imitate or obtain. (Johnson, Scholes & Whittington, 2005)Core Competence of Ryanair* The good and long-term relationship witho Console Manufacturers Sony, Microsoft, Nintendoo Mass Market Retailers Wal-Mart, Toys R Us, Best Buyo Cinema, Sports and other entertainment industrieso AOL To operate the games channel online on AOL* Diversification of games* Boost its budgets for marketing and advert ising, particularly TV advertising.Dynamic CapabilitiesDynamic capabilities are an organizations abilities to develop and change competences to impact the needs of rapidly changing environmentDynamic capabilities of EA* Invested in the development of tools and technologies for creation of games for the new mannikin of beast consoles.* Strategic acquisition of Jamadat for the rapidly growing business of providing games on mobile phonesThe Value webIn most industries, it is rather unusual that a single company performs all activities from product design, takings of components, and final assembly to delivery to the final user by itself. Most often, organizations are elements of a value system or supply chain.The value network is the set of inter-organizational links are relationships that are demand to create a product or service.(Source M.E. Porter)So the production of games not only depends on the EAs Value Chain but also on the suppliers, channels and customer value chains. Tha t when console makers are entree their new consoles when the retailers have more buying capacity and shelf space and when the product is floating into the customers value chain.