...Wii Encore Case Analysis Since 1983Nintendo has continued to introduce game consoles to the gaming market starting with Famicon in 1983 and more recently the Nintendo Wii in 2006. They have focused on keeping the platform prices low but also offering the consumer high game quality as well as image quality. Nintendo has been associated with popular games such as Super Mario Brothers (1985), The Legend of Zelda (1987), and Metroid (1987). Since the release of the Nintendo Wii in 2006, famous for the introduction of motion-censoring controllers, Nintendo continued to outsell its two competitors, Sony PlayStation and Microsoft Xbox. It was not until 2010 that both of Nintendo’s competitors launched their version of motion sensing controllers. This was the beginning of Nintendo’s fall in sales compared to Sony and Microsoft. Recently, Nintendo had a press conference about the release of their new console called the Wii U. The Wii U console also features a new controller referred to as the “GamePad” which is embedded with a touch screen. The system will be backwards compatible with the previous console, the Wii. Being that Nintendo has continued to be outsold by its competitors in 2010 and 2011, the Wii U is a smart move for Nintendo. Running another low-end encroachment (Wii U) could be Nintendo’s successor of the Wii. Rather than sustaining their current the technology, the Wii, by just making small incremental improvements, creating a disruptive technology could help Nintendo...
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...offer the highest quality products and services while treating their customers with attention and respect. Since 1983, Nintendo has focused on video game consoles and with the introduction of the Nintendo Wii console the company gained a strong hold as a leader in this industry. In 2008, Nintendo experienced various production and legal issues. However, their most significant challenge during this time was identifying and investing in innovative products that would allow the firm to continue to expand in the video game industry; while defending itself from rivals (Sony and Microsoft). Our analysis is based on various analytical tools, including SWOT (Appendix A), segment analysis (Appendix B), competitive strength assessment (Appendix C) and financial ratios (Appendix D). Overall, Nintendo has several opportunities and strengths of which they can take advantage to stay competitive in the market. However, their competitive threats and weakness pose significant financial challenges for the firm. Based on our analysis, we considered the following alternatives: 1. Continue to focus on the existing marketing strategy by differentiating itself from the competition; 2. Expand the video game product line to include games with improved graphics and functions for the current Wii in an effort to expand their customer base; 3. Invest aggressively in research and development to create a new video game console that takes into account the requirements for both the non-gamer and...
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...Japan selling more than 470 million home game consoles and handhelds as of 2009”. Nintendo was founded by Fusejiro Yamauchi the great grandfather of the current president of Nintendo.” Nintendo's products arose in the mid-1980s from the relative obscurity of the amusement arcade to change the concept of home entertainment in both Japan and the United States”. SWOT ANALYSIS: Strengths: Nintendo “strongly established brands”, “robust revenue growth”, “strong cash flow from operations, and “Nintendo derived most of its revenue from the video game business, Nintendo was in the lead in video console” (pg.C269). Weakness: Nintendo weakness is “Inventory shortages”.”Nintendo was unable to meet demand during 2007 and also struggled throughout 2008”.”In an interview on the website Game Theory, Perrin Kaplin, Nintendo vice president of marketing and corporate affairs, suggested that shortages were expected some time”. “We are at absolute maximum production and doing everything we can…but demand continues to be really high” (pg.C273). Also Opportunities: “Rising demand for company’s products and related software”, “growing US games software market”, and “increasing demand for online gaming”. Threats: “Short products lifecycle”, “slowdown of the Japanese, the US, and European economies”. ANALYSIS VIA PORTER’S FIVE FORCE MODEL: “The five forces may be interdependent i.e. pressures from one direction can trigger off changes in another dynamic process of shifting...
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...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...
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...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...
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...differentiation strategy with its seventh generation console the Wii, while simultaneously deciding to focus on serving buyers comprising of a narrow market niche. Rather than building a console with new graphic features and technological capability in to the console itself, the company concentrated on pioneering a daringly different video game controller. The bold new approach allowed Nintendo to tap into an entirely new demographic and to engage new players of video games. Combining these two strategic approaches propelled the company to become the market leader in sales of the third generation video game consoles, far surpassing Sony’s PlayStation 3 (PS3) and Microsoft’s Xbox 360. Nintendo is currently facing two significant problems: 1. The immediate concern is that the company is unable to meet the demand for the Wii console which continues to sell out in stores. 2. The long term issue that needs to be addressed is whether the company can identify and invest in innovations that would allow Nintendo to continue to expand in the market, while resisting a significant attack from its competition. In order to analyze the issues in detail a SWOT, PESTE, financial, and competitive analysis were performed. The findings indicated that the company differentiates itself from the competition with a high emphasis on product differentiation; it is quite susceptible to competition; and that the release of the Wii console has improved its financial status immensely from a revenue...
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...Team 1 Company Analysis 1 Jackson Berry, Will Berman, Amanda Curtis, Jenny Zhang Professor Belz Case Studies in Innovation March 3, 2016 NintenDON’T Nintendo captured many hearts and households in the late 1980s, and its legacy lives on through the games that made it the bestselling console of its time. Revolutionizing the world of video games, Nintendo survived the burst of the video game bubble through its storytelling across multiple game console platforms. Their products were conceived at the intersections of inexpensive hardware and unique, beloved storytelling in their games; this combination made their console a household staple. In an era of heartthrobs and fads, Nintendo rose above and surpassed a simple level of trendiness. The company defined gaming innovation: “to play Nintendo” became synonymous with video gaming. 1983 saw the first recession in the video game industry in the form of the “Atari Shock,” after the market became too populated with so many different games and consoles. This caused an oversaturation of the console industry, which was already competing heavily with home computer games. Thus, the “Atari Shock” was a flooding of a market in which no player had a majority share, and the excess of thirdparty games resulted in decreased shelf space and decreased sales. People started believing video games were a fad, and amidst the chaos, the Nintendo Entertainment System (NES) was born. Nintendo made purposeful branding decisions ...
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...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 be used for loosing weight (5). ...
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...Index Introduction ………………………….……………………………………….……3 Industry analysis ……………………………..………………….……...…......4 Competitors strategy ……………………….……………………………………. Microsoft – A differentiator………………………….…......7 Sony – A differentiator ……………………….…………………9 Analysis of competition………………………………………………………11 Nintendo’s strategy …………………………………..……………………….14 SWOT ………………………….…………………………………………………….17 Recommendations …………….………………………………………………18 References ……………………………..………………………………………….20 Introduction The first video game was created in the 1960's. Half a century later, the industry of video games represents a 42 billion Pound industry. The recent significant increase in this industry is due to the growth of broadband, the adoption of more robust wireless networks and phones, and the consolidation of game developers and publishers. This global turnover is divided in two parts: the software component is worth (32 billion pound) and the hardware component is worth (10 billion pound). Some recent analysis shows that there is about 300 millions of players in the world. It is quite difficult to find the exact number because a game or a console can be used by more than one player. The Video Game Hardware market is dominated by three main competitors: Nintendo (49%), Microsoft (30%) and Sony (21%). While the video game software market is dominated by four companies: Nintendo (19%), Activision (12%), Electronics Arts (11%) and Konami (5%). These figures indicate that Nintendo is the leader...
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...Executive Summary From the production of playing cards in 1889, to the expansion into toys and games, and eventually into the start of the electronic 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). ...
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...the ecosystem has changed to include a larger audience and usability has trumped technological superiority as a key metric in generating buyer interest. In 2008, Nintendo’s Wii had 2 times the market share that Sony’s offering, the Play Station 3, had. I feel Sony should assess the following options. (1) Focus on catering to its niche advance game segment and focus on leveraging its progress form the previous 2 generations. (2) Respond to Wii onslaught by developing its previous generation console to include a low end offering that directly competes with Wii. (3) Partner with Nintendo and others to strengthen offerings in the gaming console space, eliminating Microsoft and creating a “co-opetition” I recommend a combination of (1) and (3) to ensure sustained dominance in the gaming console market. I would not look to option (2) since it undermines SCEI’s position as a focused differentiator (Exhibit 1 in appendix) and also because this would be a knee jerk reaction forcing Sony to play on Nintendo’s terms. Analysis As evident from Porters five forces analysis (Exhibit 2) the console market is not very attractive for new entrants. . However, there is a huge growth opportunity for established players since there is only moderate buyer bargaining power and few substitutes. To substantiate the Five Forces analysis, this paper will detail a strategy that could enable SCEI to create a sustained unique advantage in the Gaming market, ensuring profitability. Conclusions are given...
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...A Strategic Analysis of Nintendo Contents Contents2 1.Introduction2 1.1Company Overview3 2.External Analysis4 2.1Global Trends4 2.2Porter 5 Forces4 2.2.1 Threat of new Substitutes5 2.2.2 Threat of new Entrants5 2.2.3 Bargaining Power of Customers6 2.2.4. Bargaining Power of Suppliers7 3.Internal Analysis8 3.1Core Competencies8 3.2. Financial Overview9 3.2Resources11 4.Strategy12 4.2 Corporate Level12 4.1. Business Level13 5.Conclusion13 Introduction If we remember a few years ago, everywhere you could see, if on the street, in a restaurant, on the train or at home. You couldn’t avoid meeting little children or even adults playing with a little portable hand-held console. What was that magical thing that seemed to fall just from heaven? And where did it come from? Nintendo DS launched in 2004 by the same titled company Nintendo Co. Ltd. That was the start of a new generation. The company already released distinctly consoles such as the „Gameboy“ where everybody is already supposed to know “Nintendo” all over the world, if this is not the case, now everybody does due to the Innovation of Nintendo DS. An innovation during the period due to the touch screen function who Nintendo has been the first corporation to use this technology in his line. Nintendo DS is able to utilize by both younger generation and elder because of the attached software which for example helped to train the memories of one’s brain. Shortly after 2004 a successful console was released...
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...ALI 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...
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...Phase 1 Report: Strategic Position Analysis Industry Nintendo of America Organisation Name Organisation Contact Name www.nintendo.com Website URL Email Address 4820 150th Ave. Northeast Address Redmond City WA State / Province 98052 Zip / Postal Code Individual Organisation Type Video Gaming Industry UNITED STATES Country Nintendo of America Inc., established in 1980, is a subsidiary of Nintendo Co. of Japan. They have been the worldwide leader in the creation of interactive entertainment; they have sold more than a billion video games to the world (Nintendo 2010). In 2006, Nintendo created the revolutionary video game console “The Wii". The Wii was designed to attract larger demographic users than other gaming systems. It was, and still, very successful; attracted many people from different ages and it resulted in huge profits since it was created. Unfortunately, recently attitude of consumers and environment has been changing unfavourably for the Nintendo. This analysis is to reveal the key successful factors that made Nintendo a leader in its industry, touch the weak points or mistakes it has done and recommend some strategies to keep Nintendo a leading player. Organisation Background : : : : : : : : : : : : : Organisation Profile 1.1. External Analysis 1.1.1. Pest Analysis In terms of external analysis, it is critical to assess whether the contextual economic, social, technological, ecological...
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...WEBSITE: www.nintendo.com COMPANY BACKGROUND: Nintendo Co. Ltd was founded in1889 and was formerly known as Nintendo Playing Card Co., they changed their name in 1963 to Nintendo Co. Ltd (Yahoo Finance, 2011).Nintendo is a worldwide company that distributes video game systems along with software products as well. They are headquartered in Kyoto, Japan; Nintendo’s CEO Iwata has proved throughout the years that they can compete with other major came counsel makers. The case study concentrated on Iwata, the CEO of Nintendo, and Perrin Kaplan the Vice President of the company. As of September 20, 2011, Iwata has sales of $11.15 billion and a profit margin of 1.08% (Yahoo Finance, 2011). This is an increase over the previous months. SWOT ANALYSIS: Strengths: The biggest strength that the case study focused on was their demographics. Nintendo strived on their new video game counsel called Wii, this game counsel was geared towards everybody. The Wii system was able to be played by a broad audience, both an advanced player and some one who has never played before. The controllers were simpler than other complicated controllers. Nintendo’s goal was to produce games that appealed to all ages and games that everybody could play. Shigeru Miyamoto, a senior director at Nintendo, explained, “Most of the game business is going down a similar path toward hyperrealistic graphics which re-create sports or movies…. We want to put a little more art into it in a way that casual consumers can enjoy...
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