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Page 1 EBM Assignment Three: Nine Elements of Business Models Page 1 EBM Assignment Three: Nine Elements of Business Models EA Sports FIFA Fernando Ortenblad Sigaud Full Sail University Entertainment Business Models 02/18/2018 Page 2 Why I choose this company: I decided to select EA Sports FIFA due to two factors, first because video game have always been important to me, since my ten years old, when my parents gave me my first video game and I started to play FIFA. It is a realistic soccer simulator that immerses you inside the day by day of a professional soccer team. With the advance of technology, FIFA has become a fantastic game, where nowadays you can control your favorite player or team, or even create a brand new team and compete against people from over the world. Second, because of the video game industry, that has drastically increased over the years, where companies are always searching for new talents, especially in Brazil, that is lacking in good professionals. Even that my career goal is to work in the live music events industry, as an entertainment business student is essential to understand all entertainment areas, especially video games. By analyzing EA Sports FIFA this month, I am going to learn about a successful business model and understand how a powerful conglomerate like Electronic Arts operates and maximize his profits every year. EA Sports FIFA Background Information: EA Sports FIFA is a video game franchise that simulates soccer, created in 1993 by the name of FIFA International Soccer. Making an incredible success because it was the first soccer video game to have a license from FIFA (Federation of International Football Association), the entity responsible to regulates soccer and for several tournaments and soccer events around the world (FIFA.com, 2017). The game gives you the opportunity to control different soccer teams and famous soccer players from all over the world and faithfully reproduced every aspect of real football. It is released annually by Electronic Arts under the EA Sports division. In 2017, FIFA represented approximately 16 percent of the company total net revenue (EA 2017 Annual Report). It is considered one of the most successful franchises of Electronic Arts together with Madden NFL, being sold worldwide. Page 3 Electronic Arts Background Information: Electronic Arts was founded in 1982 by Trip Hawkins by the name of Amazin Software. (SucessStory,2017). Their Global headquarter is located in Redwood City, California and it is run by Andrew Wilson, since 2013. Andrew has been working at Electronic Arts for 18 years and was nominated CEO after running the FIFA Soccer franchise for several years. The company started as software’s game developer for all type of computer hardware and nowadays are the leading global interactive entertainment software company. Delivering for all over the world, games, content and online services for Internet-connected consoles, personal computers, mobile phones and tablets (EA.com,2017). In 2017, the company total revenue was $ 4.845 billion (yahoofinance.com, 2018), with a net income of US$ 967 million (yahoofinance.com, 2018). With several games that are released annually for PlayStation, Microsoft Xbox, Nintendo, Mobile and Personal Computers worldwide, their primary products, are Madden NFL, EA Sports FIFA, Stars Wars Battlefront and Battlefield, that together represents more than 35% of the company total revenue (EA Annual Report, 2017). Where for the first time EA Sports FIFA passed Madden NFL as the Electronic Arts best-selling console title in the world in the calendar year 2016. Page 4 Customers Segments: 13-44 years old: The primary target customer for EA Sports FIFA are men between 13 and 44 years old (deep.social.com, 2018), who are video games players and interested in soccer. EA Sports FIFA also attracts soccer enthusiast, where according to giltedgesoccer.com, 34% of the game players become soccer fans after playing the video game. Customers that plays FIFA are looking for social interaction, relationship building, overcoming challenges and building self-worth. It is a mass market that manages to attract customers worldwide, where the ages between 13-17 represented 35% of the players (deep.social.com, 2018). Sponsors: Adidas and Coca-Cola are the exclusive brands inside FIFA. Adidas entered in 2013, by making a deal where the players can use one of their famous football boots and on the FIFA 2018 edition, Adidas design unique in-game soccer kits, where only FIFA players can purchase inside the video game (news.adidas.com, 2017). In the recent EA Sports FIFA 2018 game edition, Coca-Cola sponsor deal manages to create the first “virtual sponsorship deal”, where coke promotes an in-game Coca-Cola zero sugar commercial inside of FIFA. This new customer segment builds Coca-Cola connections with soccer on video games and real soccer (coca-colacompany.com, 2017). Value Proposition: Best Soccer Simulation Video Game: FIFA presents an immersive atmosphere, with realistic players visual. Creating an authentic game that shows an accurate rendering of the match-day experience (easports.com, 2017). FIFA main idea is to simulate soccer, at FIFA18 they introduce Real Player Motion Technology, a new system that innovates the gameplay of real players, more accurately through motion capture. Several new animations show precisely how famous players like Cristiano Ronaldo or Neymar moves on the actual pitch. Allowing customers to feel the life-like tendencies of the best football players in the world, having a unique experience while playing (easports.com, 2017). Page 5 Play with your favorite team and player: When you log in to FIFA18 by the first time you need to choose your favorite team, the one that you support or like most. This mode can create a connection between you and your favorite player. Different modes to play: FIFA offers diverse games modes that manage to call attention of different customers, like “The journey” mode that was introduced in FIFA17 and now gain a new chapter, the Career mode returns with new changes, and the Ultimate Team mode that offers an excellent platform for competitive online play, where customers can hire their favorite soccer players, build their squad and compete with gamers from all over the world. FIFA also offers the traditional friendly game, where you can play side by side with up to three friends seated next to you, bringing the game interaction to your sofa. Overcoming Challenges: FIFA offers several different modes to challenge customers and make them learn to focus on their own actions, how to lose and control impulses. According to Pinola, players can gamify every aspect of your life and learn to use a better strategy to “win” the game (2015). Create and Manage your own squad: FIFA offers to customers, the FIFA Ultimate Team. Consider the most popular mode inside FIFA, and nowadays is played by millions of people all over the world every day. This mode lets you build your dream FIFA squad from scratch and compete with it in a variety of single player and online modes. Where you can have your own stadium, choose your t-shirts and train your team to become the best FIFA squad of the word or better than your friend’s squads (easports.com, 2018). Page 6 Channels of Distribution: Retail Stores: Even with the advance of technology, where now players are starting to download their games instead of purchasing hard copies, retail stores continue to be FIFA most significant channel of distribution. Electronic Arts see the retail stores as a critical factor to deliver a positive experience to their players, where players want more than the game, they want different products, like collectibles, apparel, and merchandise to bond with the in-game experience (retail-merchandiser.com, 2016). GameStop manages to make pre-sales, promotions and early releases to call customers attention about the game. Other stores, like Wall Mart, Best Buy, and Target, focus on advertisement to call customers attention. Consoles: FIFA is sold inside their partner's online networks since 2015. PlayStation, Xbox, and Nintendo, manage to create online contents where customers can buy in advance and download the game inside their video game one minute after the release date. They also create unique editions where you are capable of downloading one week earlier than the release of the hard copies on the retail stores. Smartphones App: FIFA MOBILE SOCCER is a soccer mobile game created by EA SPORTS for Android, IOS, and Microsoft Windows platforms. The game was released on October 11, 2016, and is the mobile version for the FIFA Soccer console video game (EASPORTS.COM,2017). Using the touchscreen technology and the features of the mobile phones or tablets, FIFA Mobile Soccer optimizes the game with varied gameplay, different modes, and excellent graphics. Always releasing updates to call customers attention and maintain the game at a competitive level for soccer fans and gamers short on time. Downloads: Electronic Arts has an online platform called Origin, where customers can purchase EA Sports FIFA for your personal computer. Origin also have social feature where you can chat with friends and play your Xbox Live or PlayStation Network FIFA (origin.com, 2018). Page 7 Customer Relationships: Social Media: EA Sports FIFA has an Instagram account, Facebook page, and a twitter account. With more than 13.6 million followers, FIFA releases daily content to bond with customers from all over the world. Showing new updates inside game, the team of the week, professional soccer players playing FIFA and showing their video game skills and FIFA month awards for real soccer players, due to their outstanding performance. Bonding the customers with the professional player. FIFA Facebook page, has more than 23 million likes, and is focused on presenting what are the best services inside the game, new released and to transmit parts of their live events tournaments that happen worldwide.
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