Southwest Case

Recommendations:

EA has done very well, now being one of the worldЎЇs largest marketer of video games. They develop games, always coming up with new ideas. The chairman and CEO, Probst, believed EA was on course to become the biggest and best entertainment company in the world.

EA Sports Nation: The company strongly supports the online service that would allow tens of thousands of broadband enabled gamers to compete against one another individually or in teams across the internet. The EA Sports Nation is an excellent idea because it permits game players to play with others in the different sports. Their objective is sign up thousands of players so that they can compete with the various sports including football, PGA, Soccer, and Baseball. It would be played worldwide. They are sure it will be very profitable, based on past experience with sport games.

The main concern is that EA will take on too much responsibility and none of the divisions are being managed effectively. In addition, they have commitments to companies such as companies like Sony, Microsoft, and Nintendo who may oppose such expansion. If EA Sports grows as rapidly as they plan thousands are expected to play, they may need to establish them in a different division so that it can be managed by different members that will not and cannot interrupt the growth of EA Sports. It would seem that making EA Sports a separate division would permit management to focus their ideas, energy, and time, into the sports games that it would guarantee continued growth and expansion of the sports games to ensure its continued growth. At the same time, other divisions would be able to continue their area of the industry so that it can experience growth as well. The success depends on the quality of the product and managementЎЇs ability to deal with competition.