Systems Thinking Assessment 1 Report: Critical Analysis of EA

This report, prepared for a Systems Thinking assessment, provides a critical analysis of a business case, focusing on the application of systems thinking principles. The report examines a real-world scenario involving Electronic Arts Inc. (EA) and its microtransaction system, evaluating its impact on the company's reputation and revenue. It highlights the importance of considering consumer perspectives, competitive pressures, and potential legal consequences. The analysis also discusses the limitations of the case and suggests how systems thinking tools could have been used more effectively to mitigate negative impacts and innovate business strategies. The report concludes by emphasizing the need for businesses to prioritize customer needs to maintain a positive reputation.

Running head: SYSTEM THINKING
System Thinking
Name of the Student:
Name of the University:
Author’s Note:

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Table of Contents
Part B...............................................................................................................................................2
Critical Analysis..........................................................................................................................2
Reference.........................................................................................................................................4

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Part B
Critical Analysis
The report which is being considered for this assessment is holistic in nature. The missing
components are competitors and the overall demand for the product in the market which has not
been considered by the business. There are several gaming businesses which offer similar types
of products and therefore it is very likely that consumers would like to substitute products when
they feel that they are not getting worth from the product. The company is able to meet the
innovation level and also the needs and demand of the consumers but have not considered the
outlook of the consumers. Electronics Art Inc is regarded to be one of the top companies in
Gaming industry and they have significant products such as FIFA, Battlefront 2 which are quite
popular among the people (Nagle & Müller, 2017). The strategy of the business to introduce
microtransaction system for generating more profits from the game
backfired and led to the boycott of game like battlefront 2 as the consumers
were of the opinion that the cost of the game was more than it’s worth and
the cost was repetitive in nature as long as the person wanted to proceed in
the game. This resulted in negative publicity for the business and loss of
goodwill of the company.
The case has identified most of the reasonable consequences as it mainly concerns about
Electronic Arts Inc (EA) policies which hampered the reputation of the business and also affect
the revenue of the business. There might be other consequences as well such as legal
consequences as well competitive pressures for the business.

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The system thinking tools could have been used more prominently, which was not
accomplished (Davcik & Sharma, 2015). The company can reduce the negative impacts of the
microtransaction system and also ensure that the business considers the
needs of the customers and make the same priority so that the reputation of
the business is not affected in any way. With the help of System thinking tools the
management would have been able to deal with social challenges and at the same time also
innovate its approach.

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Reference
Davcik, N. S., & Sharma, P. (2015). Impact of product differentiation, marketing investments
and brand equity on pricing strategies: A brand level investigation. European Journal of
Marketing, 49(5/6), 760-781.
Nagle, T. T., & Müller, G. (2017). The strategy and tactics of pricing: A guide to growing more
profitably. Routledge.