...Case 4: Nintendo: Reviving a Company, Transforming a Market I. Case Background Nintendo is one of the household names when it comes to home video game consoles. It was a market leader until the launch of Sony’s Playstation and Microsoft’s Xbox. However, the launch of Wii in 2006 brought back Nintendo’s former glory and is now the company’s best-selling console. Wii focused on two things to transcend their competitors, PS3 and Xbox. First, as a low-price leader, they have a more favorable benefit-tocost ratio and second, they focused on “the fun of playing rather than cold tech specs”. With Wii being an instant smash hit in the market, how will Nintendo sustain this momentum and secure the future full of uncertainties? Point of View: Nintendo Management, year 2008. II. Issue Identification: How will Nintendo sustain the demand for its product, Wii, from non-traditional users while at the same time targeting the hardcore gamers into the brand? III. Situational Analysis Social: Escape from reality. Video gaming let the users stray away from reality, making them feel like they are really in the game having fun and not worrying about the harsh realities of life. Fun and sense of accomplishment. For some, gaming is a way to relieve stress and to have fun during leisure time. For others, video games are played seriously with aims of accomplishing the game successfully. Media for socialization. Video gaming usually involves not only one person. It is a catalyst of socialization, giving...
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...Executive Summary Nintendo Company Ltd. is a strong contender in the home entertainment industry and has faced the challenge of developing and maintaining a competitive advantage over the years. Its mission is to 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...
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...Nintendo Market Analysis Summary and Impacts Since 1983, Nintendo has been known for a leader in video game console manufacturer. With console like NES, Gameboy, Nintendo 64, 3DS and a lot more, Nintendo has been able to create an impressive intellectual property and a huge status in part by courting users that span generations and skill levels. Nintendo compare to others game manufacturers, wants everyone to play to little kids to grand-parents, from handheld console or through video game console. Among the Big Three of the videogame console makers, Nintendo's battling with Microsoft and Sony for the hearts and dollars of devoted gamers. But lately, Nintendo have lost high share in the market of video game console. In the last generation of console Nintendo was supposed to have the advantage over its competitors, since the release date was a year before. But as we can see in the graph, with a year in advance Nintendo only lead by 1.66 million on Sony PS4 and the forecast say that both Microsoft and Sony will surpass Nintendo before March 2014. Their target was supposed to be 9 million by now. Nintendo Wii U sales compare to Sony PS4 and Microsoft Xbox One | Platform | Manufacturer | Released | Unit Sold until February 2014 | PlayStation 4 | Sony | November 2013 | 4.2 million | Xbox One | Microsoft | November 2013 | 3.9 million | Wii U | Nintendo | November 2012 | 5.86 million | For that poor result in Wii U sales, Nintendo plans to buy back approximately 10...
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...CASE ANALYSIS: Nintendo BSBA FM-2302 Buela, Mary Joy Ebora, Vilma Gabriel, Romelita Perez, May Anne Submitted to: Ms. Jessica Flores I. Issue The main issue is the strong competition in the video game industry and the emergence of modern technology nowadays which make Nintendo unstable. II. Environmental Analysis Nintendo operates in a competitive industry. Nintendo’s main competitors included Microsoft and Sony, with their Xbox and PlayStation consoles. For years, Nintendo had been suffering from declining market share and shrinking margins. III. SWOT Analysis A. Strengths * Brand reputation and recognition * Unique and innovative product offerings with latest games * Geographical diversification reduces the business risk * Affordable gaming for people of a variety of economic classes. * Portability factor B. Weaknesses * High dependence on few gaming titles unlike a few leading competitors * Brand hasn't established itself in the emerging economies * Limitations of enforcing intellectual property rights in some regions has led to growth of counterfeit products C. Opportunities * Increasing focus on third party software development will benefit Nintendo due to its relatively simple technology and low development costs * Expanding demographics of gaming consumers * Technological innovations set to improve gaming experience * Expansion of digital business by offering downloadable...
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...Nintendo’s Wii U Marketing Case Study Wii U launch: make or break for Nintendo Three years ago, Nintendo was king of the $78 billion videogame industry. The Wii was a smash hit and Nintendo's DS hand-held was the best-selling portable gaming device. But a series of stumbles—a lukewarm debut for Nintendo's 3DS hand-held game player and a sharp decline in Wii sales—raised questions about whether the company is on the wrong side of a generational divide. Nintendo has refused to veer from its tried-and-tested formula of creating dedicated videogame machines, passing up a potentially lucrative opportunity to apply its game-making prowess to billions of smartphone and tablet users. In packing more technological muscle, Nintendo aims to win over the core gamers who never fully embraced the motion-sensing games of the original Wii. Nintendo started dabbling with the concept of a game machine with a second-screen controller in 2009. At the time, the Wii was still selling well, but Nintendo executives saw its broader reach as a living room hub limited because it required the Wii to monopolize the family's TV when it was in use. The wireless controller can function separately from the television, so a person can continue playing a game on the GamePad when someone else is using the TV. It only works within close proximity to the console, so the controller isn't meant to be a portable device outside the home. To push the idea of making the controller a key device in...
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...Nintendo Market Analysis Summary and Impacts Since 1983, Nintendo has been known for a leader in video game console manufacturer. With console like NES, Gameboy, Nintendo 64, 3DS and a lot more, Nintendo has been able to create an impressive intellectual property and a huge status in part by courting users that span generations and skill levels. Nintendo compare to others game manufacturers, wants everyone to play to little kids to grand-parents, from handheld console or through video game console. Among the Big Three of the videogame console makers, Nintendo's battling with Microsoft and Sony for the hearts and dollars of devoted gamers. But lately, Nintendo have lost high share in the market of video game console. In the last generation of console Nintendo was supposed to have the advantage over its competitors, since the release date was a year before. But as we can see in the graph, with a year in advance Nintendo only lead by 1.66 million on Sony PS4 and the forecast say that both Microsoft and Sony will surpass Nintendo before March 2014. Their target was supposed to be 9 million by now. Nintendo Wii U sales compare to Sony PS4 and Microsoft Xbox One | Platform | Manufacturer | Released | Unit Sold until February 2014 | PlayStation 4 | Sony | November 2013 | 4.2 million | Xbox One | Microsoft | November 2013 | 3.9 million | Wii U | Nintendo | November 2012 | 5.86 million | For that poor result in Wii U sales, Nintendo plans to buy back approximately 10...
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...Case Analysis Of Nintendo. Introduction Nintendo was established in1889 and was founded in Tokyo Japan. At that time it used to sell playing cards and had its hands in other businesses as well. Later in 1985 it entered the video game market and since then has come up with numerous products for the game lovers like the playboys and Wii etc. Some of the most memorable efforts by Nintendo are Mario Bros. and The Legend of Zelda which created a landmark for Nintendo. The company with its Wii introduction in 2006 has managed to take the share from its competitors and the product has managed to create a sensation in the market. (Corporate, n.d.) Case Analysis Statement of Problem A problem statement identifies the key problem in the case which is at times evident while at times it has to be found between the lines. (Steiss, 2003) Nintendo responded to its competitors by creating a new category for the non-game lovers by providing them easy games. They did not even try to compete with the advanced technological games for the hard core game lovers. This would cause them to lose the customers because once people have played a lot of these games they would want to switch to some difficult or more technological games which Nintendo does not offer. Thus, it might harm the company as those people would then switch to other brands. The only reason why Nintendo created a new category overall was due to the reason that it could not compete with the technological advancement of...
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...Nintendo Case Study 1. Imagine that you are charged with designing a successor to the Wii. Briefly describe the new-product strategy you might use. If I was in charge of designing the successor to the Wii I would expand how interactive the system is. Right now when playing games such as baseball you can use the remote as a bat and swing the remote to have the character on the screen swing, or when playing Mario cart you can use the remote like a steering wheel and turn it to make the vehicle you are controlling turn. I would take it a step farther and use the technology that Microsoft has just recently came out with. Microsoft has a add on to its system called Kinect. This technology uses a 3 cameras sensors and 4 microphones which helps it recognize who is standing in front of it. I would not want to go completely away from how the system is now, I would just want to expand the possibilities. Using this technology would allow users to participate more in games that include running, you could race someone and even jump over hurdles. You could also have fun with games like boxing which would allow the user to have better control over what type of punch to throw or dodging an opponents punches. The possibilities are endless but I wouldn’t like to race a car like this there would not be an advantage which is why the current system should remain in place for such games like this. 2. How might the diffusion process differ between the Wii and its competitors? Since the Wii already...
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...For the past 15 years in video game history, Nintendo was a mere follower in the console arena. However, the company made it into the top 10 of the 2008 Business Week/ BCG Most Innovative Companies. The key factor of Nintendo’s success was a socalled blue ocean strategy. This theory describes how instead of working in conditions, known as the red ocean, where businesses are viciously fighting against each other for a share of the marketplace, organizations should try and find a way to work in a marketplace that isn't bloodied by the competition and is free of competitors. Nintendo identified a new market of buyers and users, many of whom had never considered gaming. To attract this new segment of noncustomers, Nintendo designed the Wii, a console which appealed to a far greater segment of users than conventional gaming, even going beyond the “regular” target age groups. This gave the game a whole new dimension of buyers, enabling Nintendo to effectively tap into the “casual gamers” category – reaching far beyond “hardcore gamers”. Nintendo regained market share with a vengeance and spun the industry on its head with its new, holistic videogame approach. By redesigning the console and simplifying the experience, Nintendo was also able to attract a mass of casual gamers. Gaming became a social experience to be enjoyed with families and friends of all ages...
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...Innovations that improve a product or service in ways that the market does not expect, by designing for a different set of consumers in the new market and later by lowering prices in the existing market. – Example: Dell and Southwest Airlines DIGITAL INFRASTRUCTURE • Unlike the other technical (disruptive) innovations like steam engine, electricity which stabilized after businesses harnessed their potential, digital infrastructure is constantly improving • New powerful enabling infrastructure. • Provides potential for small actions and investments to make an impact disproportionate to their size. • Favors new entrants over incumbents RETHINKING THE SUBSTANCE OF STRATEGY • Convention wisdom holds adaptation as the best strategy in case of absence of equilibrium • Success achieved if they can sense and respond quickly to what’s changing around them • Examples: – – – – – Visa Microsoft and Intel Google Facebook Salesforce.com • Successful shapers: “...
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...Nintendo Nintendo Nintendo Nintendo Nintendo Nintendo Nintendo Nintendo Nintendo Nintendo Nintendo Nintendo Nintendo Nintendo Nintendo Nintendo Nintendo Nintendo Nintendo Nintendo Nintendo Nintendo Nintendo Nintendo Nintendo Nintendo Nintendo Nintendo Nintendo Nintendo Nintendo Nintendo Nintendo Nintendo Nintendo Nintendo Nintendo Nintendo Nintendo Nintendo Nintendo Nintendo Nintendo Nintendo Nintendo Nintendo Nintendo Nintendo Nintendo Nintendo Nintendo Nintendo Nintendo Nintendo Nintendo Nintendo Nintendo Nintendo Nintendo Nintendo Nintendo Nintendo Nintendo Nintendo Nintendo Nintendo Nintendo Nintendo Nintendo Nintendo Nintendo Nintendo Nintendo Nintendo Nintendo Nintendo Nintendo Nintendo Nintendo Nintendo Nintendo Nintendo Nintendo Nintendo Nintendo Nintendo Nintendo Nintendo Nintendo Nintendo Nintendo Nintendo Nintendo Nintendo Nintendo Nintendo Nintendo Nintendo Nintendo Nintendo Nintendo Nintendo Nintendo Nintendo Nintendo Nintendo Nintendo Nintendo Nintendo Nintendo Nintendo Nintendo Nintendo Nintendo Nintendo Nintendo Nintendo Nintendo Nintendo Nintendo Nintendo Nintendo Nintendo Nintendo Nintendo Nintendo Nintendo Nintendo Nintendo Nintendo Nintendo Nintendo Nintendo Nintendo Nintendo Nintendo Nintendo Nintendo Nintendo Nintendo Nintendo Nintendo Nintendo Nintendo Nintendo Nintendo Nintendo Nintendo Nintendo Nintendo Nintendo ...
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...Nintendo Case Digest – Team Pops BA 170 THR Nintendo, a pioneer of home video game consoles, has redefined how video games are to be played in this modern age. The innovative Nintendo Wii, with its unconventional remote-like game controller, proved to be a huge success for the Japanese corporation, instantly taking the top spot again after almost a decade of trailing behind Sony and Microsoft in the realm of video game consoles. Positioning Wii to become the go-to-game console of hardcore and non-traditional gamers alike, Nintendo enjoys the best of both worlds. Customers find that they can now enjoy playing video games with their families instead of playing by themselves – a new kind of fun which they cannot get from playing a PS3 or an Xbox 360. Adding to this, customers are convinced to jump ship from Sony and Microsoft for a cheaper yet family-friendly Nintendo console. While Sony and Microsoft lose money for every PS3 and Xbox 360 they sell, Nintendo has already been making huge profits from each unit of Wii sold. The Wii phenomenon is not a mere lucky strike but rather an adept execution of the Blue Ocean and the Sumo business strategies. Rather than having a bloody battle with the graphics-superior console makers in the hard-core gamers segment, Nintendo looked for a blue ocean. It launched its Wii console to serve a larger audience – the family. Unlike the competent individualistic gamers who search for intense visual effects and game play, the family wants...
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...2004, Nintendo had a number of strategies available to change the company position in the market. It had become more than clear that following the same tactic would not allow them to overlap its competitors. In order to growth further, Nintendo could integrate the opportunity to reduce costs and expand into other markets at the same time. Secondly, and maybe most promising, they could explore different consumers segments, which would enable Nintendo to reach market opportunities that had been ignored by Sony and Microsoft so far. VERTICAL INTEGRATION After analyzing its core competences, the costs, benefits and risks involved, Nintendo developed a strategy based on internalizing as much as possible gaining substantial influence in the final products. This allows the company to outsource primarily activities in which either they possess a low level of core competencies and/or transaction costs show clear disadvantages in internalizing. Nintendo follows a fabless production model (derived from “fabrication-less”) which means that all production processes are outsourced to external suppliers and production factories and then sent and assemble in Nintendo-owned factories. By avoiding investing money on expand vertical, the company reduce their transaction cost by outsourcing the manufacturing and still manage to maintain lower retail prices than competitors. This result in a different vertical integration compare to the previously existing model allowing Nintendo to succeed...
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...*CASE STUDY 11* Competition in Video Game Consoles: The State of the Battle for Supremacy AUTHORS: Christian Kostadinov 29114042 Ivaylo Baldev 29114047 Sofia 2010 Competition in Video Game Consoles: The State of the Battle for Supremacy Objectives in front of the case study The main objective that stands in front of our project is to clarify the present situation on the market of video console games. To present the strategies of the three main rival firms-Sony, Nintendo and Microsoft, to see their advantages and disadvantages, to see what their mission statement is, to see who are their customers and in which market segments the companies are trying to penetrate or have already penetrated. At the end we are going to try to predict the future development of the battle. We are also going to compare them in the above mentioned spheres, with the help of a competitor analysis. Conclusions are going to be derived after every paragraph. In order to do that we are going to use different methods including- SWOT analyses, PEST analyses etc. There were two different variants how to structure the text- first to include the PEST and SWOT analysis in the text for every firm or second variant to add it after the analysis. The second way was chosen because we decided that using this method it will be easier to compare the firms. Additionally we are going to present the information in the most understandable way by a PowerPoint Presentation. Content: 1. Introduction...
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...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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