...Analysis for Nintendo Co. Ltd. Executive Summary Nintendo Co. Ltd. is a longstanding member of the home entertainment software industry that has embarked on a mission to offer the highest quality products and services while treating their customers with attention, consideration and respect. Nintendo’s strategy thus far has been to take advantage of their video game development capabilities; nearly 60% of games sold by Nintendo are self developed. The innovative capabilities derived from various gaming platforms have allowed Nintendo to capitalize off of a series of attachment control devices. The biggest strength that Nintendo has is a strong brand name along with high returns. A well established brand name gives Nintendo an edge over its competitors. Nintendo is the only company that has managed to capitalize on both hardware and software components. The biggest opportunity for Nintendo is to incorporate themselves into the online gaming market due to short product life cycles. Nintendo maintains their competitive advantage through superior game and character development, for which it often owns the legal rights. In a technical comparison of the Wii against its major competitors, it is substantially outperformed in speed processing, memory, storage, networking, video output and multimedia output. If Nintendo wishes to maintain a competitive advantage, the niche market must be penetrated while maintaining the integrity of the Nintendo brand image. Nintendo Black would...
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...Nintendo’s continued success Introduction Who have never heard about Nintendo? Nintendo Company, Ltd. has been created in 1889 by Fusajiro Yamauchi with the main goal of producing “hanafuda” cards, which is a traditional Japanese game. Based in Kyoto, the company changed its business and has become well-known all over the world for its numerous innovations in interactive entertainment. Nintendo has been manufacturing and selling hardware and software for systems such as Wii, Nintendo DS and Nintendo DSi from the 1980’s. Mario, Donkey Kong, Pokémon, or Zelda for the most famous characters from Nintendo’s video games, still are great classic nowadays and are recognisable by most of people. The corporation is now one of the most popular and the leader of the video games market. It could be argued that its continued success as a gaming company is due attributable to an understanding of the psychology of marketing and consumer behaviour. This assignment will evaluate the extent to which Nintendo have successfully applied the theories and topics studied as part of the module of Psychology of Marketing. Each part of this assignment will consider a different aspect of the consumer behaviour: perception, attitude, motivation and involvement. “Customer perception is reality” (Piercy, 2009) “What is the first thing that pops into your head?” This is the question asked by Brand tags, a website which registers words or phrases sent by internet users who answer this question...
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...[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...
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...the present there are few success stories of companies that applied their theories in advance. One success story that does exist is Nintendo, who first applied the Blue Ocean Strategy to create the Nintendo DS handheld game system which was the first portable gaming system to offer dual screen gaming and a touch screen in 2004. In 2006, Nintendo released the Wii, which redefined how video games are played by. The 3DS is Nintendo's third endeavour for its blue ocean strategy. Its first two attempts, the Nintendo DS and Wii, were wildly successful, becoming some of the biggest selling platforms in history. Nintendo revealed their Blue Ocean Strategy during an E3 press conference during the hype build-up of the Wii. However with just one case study, this hole in their data persists despite the publication of Value Innovation concepts since 1997. Hence, a critical question is whether this book and its related ideas are descriptive rather than prescriptive.[10] The authors present many examples of successful innovations, and then explain from their Blue Ocean perspective – essentially interpreting success through their lenses.[11] The research process followed by the authors has been criticized[11] on several grounds. Criticisms include claims that no control group was used, that there is no way to know how many companies using a Blue Ocean Strategy failed and the theory is thus unfalsifiable, that a deductive process was not followed, and that the examples in the book were selected...
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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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...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...
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...Passani Economics 106T Professor Board December 2, 2010 Nintendo: Horizontal Differentiation in an Oligopoly “The game has changed, ... and the way the game is played has to be changed.” —Satoru Iwata, president of Nintendo Co. Ltd (Malstrom) Nintendo has been a major player in the technology and gaming industry ever since entering into electronics in 1970. While for years it dominated the market for virtual gaming, a rise in competition within the industry presented serious challenges for the company. After struggling for the first five years of the new millennia, Nintendo made an exceptional comeback with its innovative products, the Wii and the DS, that shook the market and brought in a whole new set of customers. Their new strategy was so successful it allowed the company to be ranked the second most valuable Japanese firm after Toyota in 2007 (Farhoomand 6 ). Despite its recent success, Nintendo must look ahead and act strategically as its competitors begin to adapt to the new market trends. Market Background The Birth of Gaming The electronic gaming industry began with a few very basic games in the 1970s. At first, they appeared in the form of coin-operated machines in public places, with games like Pac Man and Donkey Kong before moving to home entertainment with hits like Atari’s Pong (Vaughan 13). A major shift in the quality of in-home gaming came with Nintendo’s release of Famicon in Japan and the Nintendo Entertainment System (NES) in the United States in 1983...
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...014201200075 | * Mega Nirwana - 014201200091 | * Isti Fairuziah - 014201200137 | * Jia Meng Chen - 014201200165 | A Brief History of Nintendo Nintendo started as a Japanese playing card manufacturer and remained in this industry until 1974 when it created the video game market with the Magnavox Odessey. Nintendo was founded in Kyoto, Japan, in 1889 under the name of Nintendo Koppai by Fusajiro Yamauchi (Nintendo History). They made decks of playing cards, known as Hanafuda, in Japan. The cards were made by hand originally and became very popular. As demand soared, Yamauchi hired assistants to mass-produce his cards and he opened up a second shop in Osaka. Nintendo took off as one of the largest card makers in the world and maintained that status until the 1950’s. Since then, the company has been committed to creating new and innovative video game consoles and games like Nintendo Entertainment System, Super Nintendo Entertainment System, N64, Game Cube, Game Boy, Game Boy Color, Game Boy Advance, Game Boy Advance SP, Game Boy Micro, Nintendo DS, Nintendo DS Lite, Super Mario Brothers game series, Donkey Kong and the Zelda game series (Thompson, Strickland, & Gamble, 2010, pp. C-238-239). In 2006, the company released a brand-new and unique gaming system, Nintendo Wii, which won the majority of the video game console marketing share. Currently, Wii console and game sales have dramatically dropped due to the current recession. Additionally, gamers and analysts are...
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...Disruptive technology/ strategy is breaking the law of traditional industrial pattern and introducing a new arrangement focused on unserved and seemingly insignificant customers. When conventional business is focused on pushing limit of the existing technology’s performance to serve the mainstream market, disruptive technology focuses on different performance attributes and provides a product/ service beyond the market expectation. Disruptive technology is not necessarily technologically advance than the existing technology but it is an innovative approach to serve existing unattended and anticipated emerging market. It might not outperform the established technology but it will outperform market in long run. Disruptive product brings customer value proposition. Along with Wii, Apple I- tunes radio and atomic bomb are additional example of disruptive technology use. The first principle of disruptive technology is to spot the opportunity for new product but not to analyse it through traditional customers and marketing expert’s lenses. It is imperative to divert focus from existing market and focus on foreseen emerging market. Disruptive technology might have comparatively lower cost structure, hence lower expected revenues and profit margins. The last yet equally important principle is not to compare the performance of disruptive product with existing market demand or sustainable product. As a disruptive technology can change the whole game of business, while determining whether...
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...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...
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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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...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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...Apple Game Console. It has been rumored that Apple is developing a game console that would be competition with systems such as the Wii from Nintendo, Xbox 360 from Microsoft, and PS3 from Sony. Any new foray into this market would have to be well researched and strategized if it were to be profitable. Although this market is still strong I believe that it is in its mature phase of the life cycle for the most part and it would take a system that was unique and rare to win market share from the three big game console providers. If Apple were to enter the market and try and compete head-to-head with these competitors with a product that was not any better or different than what is out there they would more than likely fail. Although Apple has a strong brand name and brand familiarity that would certainly draw some interest from potential customers. Brand name alone will not convince large numbers of consumers to purchase a new system with limited titles available if it didn’t provide an experience that was significantly better than they can achieve with their current gaming system and its plethora of titles. Nintendo recognized this when they focused on promoting their handheld DS system and branching it out into areas other than strictly game play. They knew that to come out with a new console that was similar to what Sony and Microsoft were offering would result in minimal (if any) profits and market share. Instead they focused on coming up with a product and idea that...
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...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 page 2 1.2 Profile of the gamer page 2 2. Microsoft page 3 3. Nintendo page 4 4. Sony page 6 5. Competitors analysis page 8 6. PEST analyses page...
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...NINTENDO’S DISRUPTIVE STRATEGY: IMPLICATIONS FOR THE VIDEO GAME INDUSTRY Summary and Analysis by Aris Metin Burning Questions: 1. Has Nintendo really disrupted the industry and changed the name of the game? 2. Would this disruptive transformation of the video game industry leave the competitors in the cold? 3. What course of action was available to them? Disruptive Technology – coined by Clayton Christensen, a Harvard business professor – leading companies , despite having followed all the right practices, still lost their top positions when confronted with disruptive changes in technology and market structure. – Failure to meet the technological demands of customers in the future – An innovation that used a “disruptive strategy’ rather than a “sustaining strategy” or revolutionary strategy KEY PLAYERS IN THE VIDEO GAME INDUSTRY Sony (Playstation), Nintendo (Wii) and Microsoft (Xbox) SONY – introduced Playstation (PS), attracted late teens and young adults with disposable income, offered more sophisticated and more violent games; backward compatibility (PS1, PS2 and PS3), can also play CDs and DVDs. Also launched Playstation Portable (PSP) 1. PS3 – a multimedia entertainment hub; allows users to chat online, listen to music, view HD animations 2. results were disappointing because of Supply problems and the high price tag SONY produced 40% of its components in-house. Massive costs of investing in the game console equipped with Blu-ray...
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