...[MARKETING FUNDAMENTAL: THE SUCCESS OF THE NINTENDO] | | Summary Introduction: 3 I. General presentation: Nintendo 3 II. Porter´s model: 4 I. The Substitution Products : 4 II. The competition 5 Sony: 5 Nintendo: 5 Microsoft: 5 III. The Positioning: 6 The similarity matrix: 6 Perceptual map of Nintendo DS: 6 IV. Segmentation: The reasons of success 8 Swott : 8 Operational Segmentation 9 Why marketing communication campaign was a success? teddy 10 V. CONCLUSION: Recommendations for Sony and PSP 10 Introduction: A portable console is a video game console designed for ease of transportation. It differs from the old « classic » console in its compact design, bundling the screen, control buttons and the speakers. During the 1970s and 1980s, several companies such as Coleco and Milton Bradley offered a combination of portable and non-portable (requiring a support to be raised) electronic games. The original portable models were limited to a single game built into the machine itself and thus not meeting the multiple gaming capabilities of current portable machines. Milton Bradley Microvision introduced in 1979 is considered as the first real portable console with exchangeable video game cartridges. The Nintendo Company has dominated the handheld market since the release of its Game Boy in 1989. Nintendo is often seen as the company that made this console, popular. Unlike the PC market, the console manufacturers are not as numerous...
Words: 1843 - Pages: 8
...FARHOOMAND NINTENDO’S DISRUPTIVE STRATEGY: IMPLICATIONS FOR THE VIDEO GAME INDUSTRY For some time we have believed the game industry is ready for disruption. Not just from Nintendo, but from all game developers. It is what we all need to expand our audience. It is what we all need to expand our imaginations. - Satoru Iwata, president of Nintendo Co. Ltd1 In the 2008 BusinessWeek–Boston Consulting Group ranking of the world’s most innovative companies, Nintendo Co. Ltd (“Nintendo”) was ranked seventh, up from 39th the previous year. 2 This recognised Nintendo’s significant transformation into an innovative design powerhouse that had challenged the prevailing business model of the video game industry. In 2000, when Sony, Microsoft and Nintendo (the “big three” of the video game console manufacturers) released their latest products, Sony's PlayStation 2 (“PS2”) emerged as the clear winner, outselling Microsoft’s Xbox and Nintendo’s GameCube. In 2006, a new generation of video game consoles was introduced by these players, precipitating a new competitive battle in the industry. Microsoft and Sony continued with their previous strategies of increasing the computing power of their newest products and adding more impressive graphical interfaces. However, Satoru Iwata, president of Nintendo, believed that the video game industry had been focusing far too much on existing gamers and completely neglecting non-gamers. Armed with this insight, the company repositioned...
Words: 10466 - Pages: 42
...Nintendo Co., Ltd. (???????, Nintendo Kabushiki gaisha?) is a multinational corporation located in Kyoto, Japan. Founded on September 23, 1889[2] by Fusajiro Yamauchi, it produced handmade hanafuda cards.[6] By 1963, the company had tried several small niche businesses, such as a cab company and a love hotel.[7]}} Nintendo developed into a video game company, becoming what is arguably the most influential in the industry, and Japan's third most valuable listed company, with a market value of over US$85 billion.[8] Also, Nintendo of America is the majority owner of the Seattle Mariners Major League Baseball team.[9] The name Nintendo can be roughly translated from Japanese to English as "leave luck to heaven".[10] As of October 18, 2010, Nintendo has sold over 565 million hardware units and 3.4 billion software units.[11] Contents * 1 History o 1.1 As a card company (1889–1956) o 1.2 New ventures (1956–1974) o 1.3 Electronic era (since 1974) + 1.3.1 Handheld console history * 2 Infrastructure o 2.1 Key Executives o 2.2 Offices and locations * 3 Software development studios o 3.1 First-party studios o 3.2 Second-party studios o 3.3 Former affiliates * 4 Policy o 4.1 Emulation o 4.2 Content guidelines o 4.3 License guidelines o 4.4 Seal of Quality + 4.4.1 NTSC regions + 4...
Words: 7314 - Pages: 30
...Robin Muncy Nintendo: Maintaining Competitive Advantage Copyright 2011. Gatton Student Research Publication. Volume 3, Number 1.Gatton College of Business & Economics, University of Kentucky MGT 499 Spring 2011 2 Abstract Nintendo has been a major contender in the video game industry for the past several decades, and has faced the challenge of developing and maintaining competitive advantage over the years. With the introduction of the Nintendo Wii console, the company gained a stronghold as a leader in the video gaming industry. However, competitors Sony and Microsoft are quickly gaining on Nintendo’s competitive advantage, forcing the company to monitor and reevaluate its strategies. To maintain a competitive advantage, Nintendo must look toward influencing the customers of Sony and Microsoft, continue developing innovative technologies, and also consider the impact of social networking and mobile devices on the gaming industry. 3 History of Nintendo Nintendo Co. Ltd began its long history at the turn of the twentieth century as a Japanese manufacturer of playing cards. The company went public in the 1960s, and by the 1970s Nintendo had begun directing its focus toward electronic toys and video games. Nintendo became a leader in the video game industry in the ‘80s and ‘90s with its home video game consoles and popular game titles. Competitors began to emerge in the ‘90s; the release of Sony’s PlayStation platform broadened the video game market, and the rising...
Words: 1974 - Pages: 8
...Robin Muncy Nintendo: Maintaining Competitive Advantage Copyright 2011. Gatton Student Research Publication. Volume 3, Number 1.Gatton College of Business & Economics, University of Kentucky MGT 499 Spring 2011 2 Abstract Nintendo has been a major contender in the video game industry for the past several decades, and has faced the challenge of developing and maintaining competitive advantage over the years. With the introduction of the Nintendo Wii console, the company gained a stronghold as a leader in the video gaming industry. However, competitors Sony and Microsoft are quickly gaining on Nintendo’s competitive advantage, forcing the company to monitor and reevaluate its strategies. To maintain a competitive advantage, Nintendo must look toward influencing the customers of Sony and Microsoft, continue developing innovative technologies, and also consider the impact of social networking and mobile devices on the gaming industry. 3 History of Nintendo Nintendo Co. Ltd began its long history at the turn of the twentieth century as a Japanese manufacturer of playing cards. The company went public in the 1960s, and by the 1970s Nintendo had begun directing its focus toward electronic toys and video games. Nintendo became a leader in the video game industry in the ‘80s and ‘90s with its home video game consoles and popular game titles. Competitors began to emerge in the ‘90s; the release of Sony’s PlayStation platform broadened the video game market, and the rising...
Words: 1974 - Pages: 8
...of any given company. That includes PESTEL, Michael Porter's five forces model and SWOT analysis. We also evaluated the internal factors of Nintendo taking into account its financial statements through the past four years. In addition to some financial ratios such as net profit margin, current ratio, debt ratio, inventory turnover and assets turnover. Finally, recommendations have been placed based on the internal/external analysis from our perspective as a Chief Operating Officer of Nintendo. Introduction: Nintendo is a multinational consumer electronics company located in Kyoto, Japan. It is considered as the world's largest video game company by the value of its revenue. Fusajiro Yamauchi founded it on1889; where it originally produced handmade playing cards. In 1963, the company was trying several small niche businesses, including cab services and love hotels. The company relinquished the previous ventures in favor of toys in the 1960s, Nintendo. In the 1970s, it developed into a video game company, substantially becoming one of the most effective in the industry and Japan's third most-valuable listed company with high market value. Nintendo of America is also the plurality owner of Seattle's Baseball team, Mariners. The translation of the name Nintendo from Japanese to English is "leave luck to heaven." In March 2014, Nintendo reported historically cumulative sales of over 670.43 million hardware units and 4.23 billion software units. (Wikipedia) External analysis: ...
Words: 2775 - Pages: 12
...I. Introduction a. Company History And Background Nintendo started as a small Japanese business by Fusajiro Yamauchi near the end of 1889 as Nintendo Koppai. Based in Kyoto, Japan, the business produced and marketed a playing card game called Hanafuda. In 1956, Hiroshi Yamauchi visited the US, and this is when he realized the limitations of the card business and hence moved on to different arenas of the gaming world. In 1963, Yamauchi renamed Nintendo Playing Card Company Limited to Nintendo Company, Limited. During 1963 and 1968, Nintendo set up a taxi company, a "love hotel" chain, a TV network, a food company and several other things. All these attempts at expanding and diversifying the business failed, except toy making, where they had relatively prior experience with from selling playing cards. In enormous debt, Nintendo was trying to withstand the Japanese toy industry; it was still small at this point. Due to the short product life cycle of toys, innovation and constantly new product development was vital. This was the beginning of a major new era for Nintendo. In 1970, Hiroshi Yamauchi discovered the hidden talents of Gunpei Yoki, a maintanace engineer at the factory, who built what was later called The Ultra Hand which soon turned into a huge success, selling approximately 1.2 million units. Yokoi was soon moved from maintenance to product development. Nintendo’s first step into the video games industry was in 1975. At the time, home video game consoles were...
Words: 3828 - Pages: 16
...paying careful attention to their customers and continuous improvement with their product lines. At Nintendo we are proud to be working for the leading company in our industry. We are strongly committed to producing and marketing the best products and support services available. We believe it is essential not only to treat every customer with attention, consideration and respect. By listening closely to our customers, we constantly improve our products and services. Vision Statement Nintendo we are proud to be working for the leading company in our industry. We are strongly committed to producing and marketing the best products and support services available. We believe it is essential not only to provide products of the highest quality, but to treat every customer with attention, consideration and respect. By listening closely to our customers, we constantly improve our products and services. Nintendo Corporation feels an equal commitment toward our employees. The Company wants to maintain an atmosphere in which talented individuals can work together as a team. Commitment and enthusiasm are crucial to the high quality of our products and support services. We believe in treating our employees with the same consideration and respect that we, as a company, show our customers. History Nintendo started as a small Japanese business by Fusajiro Yamauchi near the end of 1889 as Nintendo Koppai. Based in Kyoto, Japan, the business produced and marketed a playing card game called Hanafuda...
Words: 5491 - Pages: 22
...TEN MBA 57602 - Marketing Management Mid Term Project Nintendo Wii Introduction: The video game industry started in 1970 & by time it became a big business worth more than 10 Billion dollars annually (1). In 2006, Nintendo Co. evolved the market with it is new innovation “Wii” game console. Wii lunch changed the roles in the business industry & brought back Nintendo's ranking in the market to the top. In the following lines we will provide a brief analysis of the company, stakeholders & product in light of the marketing management models. 4 C’s Stakeholders Analysis: 1. Consumers: With strong & innovative vision from Saturo Iwata, President & CEO of Nintendo, the company deputed it is new product targeting all customers irrespective of age, gender & gaming experience (2). The new game has been used all over the world by every member of the family. In addition to the traditional segment of consumers composed of video gamers, Wii attracted women and elderly people as well to enable a whole family of all ages to enjoy the game together and jointly. It is a success story of transgenerational design (3). By introducing Wii as new way for keeping the physical competency, the game entered the health & fitness sector to find new customers. The business of diet related products in the United States exceeds 40 billion dollars annually (4), Wii eventually shared part of the pie. Diet specialized web sites provided special reviews to show how Wii can...
Words: 2852 - Pages: 12
...machines capable of stunning visuals and graphics. • In the mid 2000 to 2007, social media, smartphone and tablet technology entered the gaming scene. • Casual games become the norm attracting previously non-gamers into the market. Introduction (cont 2/2) • As the dominant force of the mobile and gaming market, in the next coming 5 years, where does Nintendo see itself competing with threats from smartphones and other gaming platforms taking up its share of the market? • Scenario planning : To make strategic decisions that will be a sound foundation for all plausible and possible future scenarios. Company Profile (1/3) • Founded in 1889 in Kyoto, Japan by Fusajiro Yamauchi. • Manufacturer of Hanafuda “flower” cards • Expanded in 1960s by Hiroshi Yamauchi. • Following the crash of the cards business, Nintendo entered the toy industry upon discovering Gunpei Yokoi, a mechanical engineer. Company Profile (2/3) • 1970: Yokoi teamed up with Shigeru Miyamoto to create games – The Father of Modern Video Gaming, creator of iconic franchises including Mario, Zelda and Pokemon. • The rest is history. Evolution of Nintendo Gaming Consoles Industry Overview (1/2)...
Words: 2368 - Pages: 10
...1. Was Nintendo just lucky, or does the Wii’s success have strategic merit? Nintendo's strategy was very clear and clever. It thought that it could not survive in the competition with Microsoft's Xbox and Sony's Play Station 3. So, Nintendo do not try to compete to the competitor rather than it tried to rebuild the gaming system. Without concerning the more advanced technology, it tried to do more using less investment. The gamers are of two types; teenagers and hardcore gamers. Company earns a lot from the core gamers and they spend a lot in this. As the hardware become more sophisticated and games are more realistic and whether this tech people are more likely pleased. So, Nintendo focuses on the fun playing games rather than the technological junkies. They realized that they couldn’t make a better product, so by changing the way in which the product is used they created a whole new market at their control. By changing their focus away from the game but the experience Nintendo created a unique strategy that is now synonymous with their name. Nintendo developed the Wii with a very specific design and marketing strategy in place. So, Nintendo's strategy was so resourceful and it worked. 2 Has Nintendo put the “fad” question to rest? State a case as to why the Wii is not here to stay? Nintendo tried its best to keep the game alive for a long time. So it invested a lot of money in order to ensure Wii's success does not fade away as like most of the game consoles...
Words: 343 - Pages: 2
...entertainment industry in the late 1970’s, over the years Nintendo worked hard to achieved brand familiarity. Over the years Nintendo’s products have made their way through the product life cycle. From the initial market introduction and sales growth in the 1980’s, the Nintendo Entertainment System (NES) as well as their first big game “Donkey Kong”, dominated the market. In the 1990’s, when true competition entered the market, Nintendo’s products had reached market maturity and sales started to decline. By 2003 Nintendo’s market share had shrunk so much that the future of the company became worrisome. The product life cycle has started again with the recent introduction and phenomenal success of the Nintendo Wii. As of the end of the 2010 first quarter Nintendo Wii had lifetime sales of $68 million, holding 49.1% of the market share. Unfortunately production supply has become significantly depleted and current capacity demands are not being met. With the holiday season drawing nearer, George Harrison, Senior Vice President of Marketing for Nintendo must analyze the market to determine a cost effective solution that will allow Nintendo to maintain adequate inventory levels to avoid a supply shortage. Details of George’s decisions include: distribution levels; to whom; at what price; and how (online vs. in-store). Nintendo objective is not to compete directly with Sony PS3 or Microsoft’s Xbox 360, instead Nintendo believes that it can target the broader audience in order...
Words: 6287 - Pages: 26
...from grace” Joseph Garcia ACCK 500-115 Professor McNett 16 July 2014 Garcia 1 Nintendo, once a video game console industry giant is on the decline, doomed to fade into obsolescence if serious action isn’t taken. Nintendo was once the industry leader in video game innovation, but Microsoft, Sony, and even smartphones have eroded the grasp Nintendo once had. In all areas of industry, Nintendo’s products have competition; consoles, handhelds, and software are all matched and replicated by competitors. Holiday seasons, slashed console prices, and even promotional console bundles did not help Nintendo rise from its slump. Not only is the company lagging, but its investors are losing faith in the future prospects, and are getting increasingly worried. Nintendo’s President even issued an apology to shareholders, trying to reassure them that Nintendo will unveil a new strategy to revive the company (Industry Week). While Nintendo’s stagnation is visible in the public, on store shelves and press releases, the true story is in the company’s financial ratios. The data for the ratios discussed later come directly from Nintendo’s financial data (Nintendo Consolidated Financial Statements). The first article “Is It Time for Nintendo Kill the Wii U?” recommends that Nintendo moves out of the console and hardware industry, and continue on solely producing software. Companies such as Sega and Atari survived by pursuing the...
Words: 1637 - Pages: 7
...always been the lead developer and designer and also accomplished many achievements and awards. Aside from creating games, he really understood how the business of gaming worked. Although Shigeru Miyamoto had plenty of talents, his greatest seemed to be in work and creation in video games. The Legend of Zelda, Super Mario Brothers, and Donkey Kong fans all have Shigeru Miyamoto to thank for these games creation. Back in 1981, after Nintendo was suffering a possible financial collapse, they released Miyamoto’s first game known as Donkey Kong. For the time, Donkey Kong dominated the market leading to Miyamoto ultimately saving Nintendo (Hiroko, 2013). When the Nintendo 64 was first being released, Super Mario 64 launched as one of the first Nintendo 64 games. The game was revolutionary and set a new standard for gaming completely (Carlson, 2013). He has made many game series which many children love and adults will never forget. Shigeru Miyamoto understood how the business world of gaming worked. Many people have wondered as to why Nintendo can sometimes be slow with making major releases (Bui, 2010). However, his response is that in order to make a game fun, creative and playable is to take time and find new ways for gameplay to be enjoyable rather than tasteless. He also seems to have a sense as to why the market can do better in previous years than in future years and how to take the gaming systems to be current and up to date(Miyamoto, 2007). Shigeru...
Words: 787 - Pages: 4
...Nintendo is a multinational video game company located in Kyoto, Japan. Founded on September 23, 1889, it began as a playing card manufacturer, followed by a trial and error phase in which the corporation experimented with several niche businesses such as a cab company and a hotel, before settling into video games in 1974. Today, Nintendo is synonymous with innovation and a family friendly gaming atmosphere. [Nintendo Logo] Released in 2006, Nintendo’s “premiere product,” per se, is the motion-sensing video game console Wii. [Wii Image] Using a remote and camera combination to detect player arm movement, the Wii has a large game library ranging from the traditional Mario games to Sports games such as golf, baseball, tennis, and bowling that have the player using realistic motions (swinging, throwing) to control the game. [Wii-Mote] [Wii-Camera] The Wii was originally released at the US $299.99 price point, which was a calculated decision considering Nintendo’s competition, the Microsoft Xbox 360 and Sony Playstation 3, were at least $100 more expensive at the time. Today, The Wii is priced at $199.99 US and comes with one Wii-mote/Motion camera set. [Xbox 360] Wii Xbox 360 Playstation 3 Release Price $299.99 $399.99 $499.99 Current Price: $199.99 $199.99 $299.99 [Playstation 3] Known for colorful, fairly simple, easy to understand games, the Wii quickly emerged as the leader in the current generation of gaming consoles with its family friendly appeal and lower...
Words: 1665 - Pages: 7
