ght about demand far more often than they are wrong. EA's business is highly seasonal, so if one or more of the new products is not well accepted then EA's sales revenues and profits could be adversely affected.
For EA, another key success factor involves the ability to attract and retain qualified employees – particularly those in product development. These creative employees are an essential factor in EA's growth and development. It is probably not an exaggeration to suggest that the company's future success depends, in large measure, on its ability to continue to attract and retain certain key employees.
Another key or critical success factor is North American sales. For fiscal 2003, net revenue from sales in North America increased by 31 percent to $1.4 billion versus $1.1 billion in fiscal 2002.
2A4. Industry Competitive analysis: The business EA is involved in is highly competitive. It requires the continuous development and introduction of new titles. Competitors vary in size from small companies with limited resources to large, diversified corporations with substantial financial resources and marketing expertise.
2A4:1. The five forces of competition
2A4.1.a. Bargaining power of buyers: New releases from EA typically retail for between $30.00 and $50.00 and it is possible that consumers will one day balk at paying this much for a game – especially if they learned how inexpensive these products are to produce. However, the bargaining power of consumers is low because purchasing is made by individuals. The bargaining power of retailers is higher because they purchase in bulk, and because they know how profitable EA has become, and how inexpensive a game is to manufacture. Buyers for retailers are able to demand concessions from EA including price protection and stock balancing privileges.
2A4.1.b. Bargaining power of suppliers: In many instances, EA is able to acquire needed materials from supplie...