...realised that once again Nintendo had revolutionized the video game industry. In a way that only Nintendo knows how they have managed to separate themselves from competitors and set out to create new markets. Their latest product is loved by consumers for the experience, price point and unique Nintendo content that it offers. The Wii experience offers something not seen before in the industry. The immersive, motion-sensor gameplay makes the Wii unique. The product differentiation Nintendo chose has resulted from the target market Nintendo focused on. It identified and targeted groups of people who had no interest in video games. Before long the product was popular in nursing homes and kindergartens, demographics that no company in the industry once catered for. The unique experience not only “battled the difference between the indifference of people who have no interest in video games” and succeeded, it also proved attractive to innovators and early adopters. This strategy has been identified by the Journal of advertising research as a key component to rapid market penetration and high profits . As suggested by the article energy policy late majority and laggards are categories of innovation that lack willingness to adopt new products. The article proves that to reach these groups the innovators and early adopters must first embrace the product and that the late majority and laggards can’t be financially burdened by their purchase. Nintendo appealed to these categories...
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...Nintendo Wii Case Study 4.1 International Marketing Bryan Witt David Zaki History and background • A video game console is just a computer that is made only. To Play games. • These systems started to gain popularity in the 1970s with consoles that played only Pong. • Current console success started in 1985 with Nintendo’s super Smash Brothers. History and background • A video game console is just a computer that is made only. To Play games. • These systems started to gain popularity in the 1970s with consoles that played only Pong. • Current console success started in 1985 with Nintendo’s super Smash Brothers. History and background • A video game console is just a computer that is made only. To Play games. • These systems started to gain popularity in the 1970s with consoles that played only Pong. • Current console success started in 1985 with Nintendo’s super Smash Brothers. Marketing The strategy for marketing consoles is based on: – Better technologies/graphics Ex: HD, Blue Ray and 3D – Better games Ex: FIFA, Halo and Mario Production • Production started in the US then moved to China and Japan. • Development is expensive but the consoles cost little to produce. • The longer a product is sold the more profitable each sale. Competition • As the market became more profitable: • Computer companies began investing in the market. • Sony created it’s famous PlayStation • Microsoft introduced the Xbox and Xbox live. Growth...
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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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...6/9/2013 6/9/2013 Matthew Hull, Scott Love, Nikole Phillips, Jason Wilcox Predict 450 Matthew Hull, Scott Love, Nikole Phillips, Jason Wilcox Predict 450 Game Console Brand Equity An analysis of forces involved in Xbox, Playstation and Nintendo brand equity Game Console Brand Equity An analysis of forces involved in Xbox, Playstation and Nintendo brand equity Introduction The successful marketing and revenue generation of products is governed by a host of tangible and intangible factors. As marketing analytics research continues to develop theories and models for uncovering these important components of the product sales cycle, certain components differentiate themselves through importance and impact. Brand equity is one such component and can be described as “the added value endowed on products and services…reflected in the way consumers think, feel and act with respect to the brand” (Kotler & Keller, 2012, p. 243). In an effort to better understand brand equity, this paper analyzes the brand equity properties of the three primary gaming consoles in the United States. The analysis of the gaming console platforms from Microsoft (Xbox), Sony (PlayStation) and Nintendo (Wii) is specifically important and revealing because of several factors. First, the initiation of this paper coincides with the unveiling and soon to be released newest additions to the Microsoft and Sony fleet of gaming consoles, specifically the PlayStation 4 and Xbox One. In addition...
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...Microsoft and the Xbox 360 Ring of Death ------------------------------------------------- Table of Contents Executive Summary ...................................................................................................................... 3 Problem Statement .......................................................................................................................4 Situation Analysis ..........................................................................................................................4 Objectives ..............................................................................................4 Background ............................................................................................5 SWOT Analysis ..............................................................................................................................6 Strengths ...............................................................................................6 Weaknesses ...........................................................................................7 Opportunities .........................................................................................8 Threats................................................................................................... 8 Market Analysis ............................................................................................................................9 Previous Market...
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...won the league in 1995 and on 2001 the team set the league record winning the highest number of games for one season. The Mariners are one of the best-managed clubs returning profits even when the other big players are operating at a loss. Some of the reasons for its sustenance and success are attributed to firstly, the Nintendo group. The controlling owners bought the 55% stake when the company was experiencing difficulties in the maintenance of the former home necessitating a change of location. They brought the peace of mind and stability to the community. The other reason for the team's rise is because of the management that has made wise decisions regarding the present building and home of the Mariners. A SWOT analysis of the institution shows that the firm is in a good position to compete with other national league teams because it can increase its local support base as well as appeal to International market because of the presence of icons from other nations among the team members. The weaknesses are glaring but can be avoided by building a team that is very ambitious to win and reach levels that have not been reached before this time. In this case, competing, winning and dominating the World Series. The threats can be mitigated by forming a loyal support group and ensuring that children uptake baseball from their very young ages. The club’s competitive analysis reveals that it is still going to compete very well against the competition that it faces in the business...
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...Blue Oceans for Miniclip What is Blue Ocean Strategy? Blue Ocean Strategy is a study conducted by W. Chan Kim and Renée Mauborgne. It was based on 150 strategic moves in business after the in depth analysis of more than 30 different evolving industries over the period of more than 100 years. In a nutshell, the study focuses on achieving the success in businesses not by battling hard with the competitors, but creating new opportunities, discovering new markets and forming new industries. It declares the markets where there is strong competition and rivals are strong and in great numbers, are “Red Oceans”, on the other hand a market or industry which is yet to be born, can be created or discovered is a “Blue Ocean”. A newly created Blue Ocean is not prone to be a quick follow-up by the rivals because the creator of that very Blue Ocean actually knows the nitty-gritties of the infant industry or market. So the creator can reap the benefit for at least a decade before the rivals catch up. How BOS (Blue Ocean strategy) works? BOS comprises of various methodologies, frameworks and practical tools that can help to determine that on what basis a business can extend its boundaries of the existing industry and further it helps to gauge the possible risk, repercussions and benefits as well. Various imperative parts of the BOS are: 1. Strategy Canvas 2. The initial test for BOS 3. Buyer utility map 4. Buyer experience cycle 5. Price corridors of the mass...
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...A Case Study With Sony On Penetration Pricing As Global Pricing Strategy Meaning of Penetration Pricing This is a marketing strategy used by firms to attract customers to a new product or service. Penetration pricing is the practice of offering a low price for a new product or service during its initial offering in order to attract customers away from competitors. The reasoning behind this marketing strategy is that customers will buy and become aware of the new product due to its lower price in the marketplace relative to rivals. It can often increase both market share and sales volume. Additionally, the high sales volume can also lead to lower production costs and higher inventory turnover, both of which are positive for any firm with fixed overhead. The tagline “special introductory offer” is the classic sign of penetration pricing. The aim of penetration pricing is usually to increase market share of a product, providing the opportunity to increase price once this objective has been achieved. Penetration pricing is, therefore, the pricing technique of setting a relatively low initial entry price, usually lower than the intended established price, sometimes lower than the costs too, to attract new customers. The strategy aims to encourage customers to switch to the new product because of the lower price. Penetration pricing is most commonly associated with a marketing objective of increasing market share or sales volume. In the short term, penetration pricing is likely...
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...Journal of Economic Geography Advance Access published June 22, 2005 Journal of Economic Geography (2005) Page 1 of 30 doi:10.1093/jeg/lbi001 Video games production networks: value capture, power relations and embeddedness Jennifer Johns* Abstract This paper has two main aims. Firstly to conceptualize the production networks of the video games industry through an examination of its evolution into a multi-million dollar industry. Secondly, to use the video games industry to demonstrate the utility of Global Production Network approaches to understanding the geographically uneven impacts of globalization processes. In particular, three key notions of value, power and embeddedness are used to reveal the most powerful actors in the production network, how they maintain and exercise their power, and how the organization of production is manipulated as a result. It is argued that while hardware production is organized by console manufacturers using truly global sourcing strategies, the production of software is far more complex. In fact, software production networks are bounded within three major economic regions: Western Europe, North America and Asia Pacific. This paper seeks to explain how and why this has occurred. Keywords: video games, global production networks, value, power, embeddedness JEL classifications: L14, L23, L82 Date submitted: 4 October 2004 Date accepted: 12 April 2005 1. Introduction The video games industry1 was born during the early 1960s and has rapidly...
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...A Case Study With Sony On Penetration Pricing As Global Pricing Strategy Meaning of Penetration Pricing This is a marketing strategy used by firms to attract customers to a new product or service. Penetration pricing is the practice of offering a low price for a new product or service during its initial offering in order to attract customers away from competitors. The reasoning behind this marketing strategy is that customers will buy and become aware of the new product due to its lower price in the marketplace relative to rivals. It can often increase both market share and sales volume. Additionally, the high sales volume can also lead to lower production costs and higher inventory turnover, both of which are positive for any firm with fixed overhead. The tagline “special introductory offer” is the classic sign of penetration pricing. The aim of penetration pricing is usually to increase market share of a product, providing the opportunity to increase price once this objective has been achieved. Penetration pricing is, therefore, the pricing technique of setting a relatively low initial entry price, usually lower than the intended established price, sometimes lower than the costs too, to attract new customers. The strategy aims to encourage customers to switch to the new product because of the lower price. Penetration pricing is most commonly associated with a marketing objective of increasing market share or sales volume. In the short term, penetration pricing is likely...
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...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 on the video games market, on hardware and software. Nintendo Company was created in 1889 by Fusajiro Yamaushi as a playing cards creator. The company has now expanded well beyond card making. Today it has several divisions including Video games, consoles, manga. Nowadays Nintendo is led by Satoru Twata and headquarter is in Tokyo. The organization employs 4200 peoples, has a turnover of...
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...SESSION 1 2 CHAPTER 1: Global marketing in the firm 2 1. Introduction to globalization 2 2. The process of developing the global marketing plan 2 3. Comparison of the global marketing and management style of SMEs and LSEs 2 4. Should the company “stay at home” or “go abroad”? 3 5. Development of the global marketing concept 3 6. Forces for global integration and market responsiveness 3 7. The value chain as a framework for identifying international competitive advantage 4 8. Value shop and the service value chain 5 9. Information business and the virtual value chain 5 CHAPTER 2: Initiation of internationalization 8 1. Introduction 8 2. Internationalization motives 8 3. Triggers of export initiation (change agents) 9 4. Internationalization barriers / risks 9 SESSION 2 11 CHAPTER 3: Internationalization theories 11 1. Introduction 11 2. The Uppsala internationalization model 11 3. The transaction cost analysis model 11 4. The network model 12 5. Internationalization of SMEs 12 6. Born globals 12 7. Internationalization of services 13 CHAPTER 4: Development of the firm’s international competitiveness 15 1. Analysis of national competitiveness (the porter diamond) 15 1.1. Factor conditions 15 1.2. Demand conditions 15 1.3. Related and supporting industries 15 1.4. Firm strategy, structure and rivalry 15 1.5. Government 15 1.6. Chance 15 2. Competition analysis in an industry 15 2.1....
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...practices that are prohibited by United States laws and regulations, such as the Foreign Corrupt Practices Act, and by local laws, such as laws prohibiting corrupt payments to government officials. Although we implement policies and procedures designed to ensure compliance with these laws, there can be no assurance that all of our employees, contractors and agents, as well as those companies to which we outsource certain of our business operations, including those based in or from countries where practices which violate such laws may be customary, will not take actions in violation of our policies. Any such violation, even if prohibited by our policies, could have a material adverse effect on our business. Because of the growing international operations of Take-Two the risks of not complying to foreign laws and regulations could result in increased costs and decreased sales. Take-Two has policies and procedures that follow laws like the Foreign Corrupt Practices Act. But there is no guarantee that all employees or involved parties will follow these laws and regulations. 2. Economic- Page 8- We continue to monitor economic conditions that may unfavorably affect our businesses, such as deteriorating consumer demand, pricing pressure on our products, credit quality of our receivables, and foreign currency exchange rates. The economic environment has affected our customers in the past, and may do so in the future. Bankruptcies or consolidations of our large retail customers...
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...The Analysis of PlayStation of SONY Corporation NAME: Mei Zhang Yixuan Yao Zhaorui Liu Yong Zhang In this case we choose the SONY Corporation. SONY Corporation (NYSE: SNE), commonly referred to as SONY, is a Japanese multinational conglomerate corporation headquartered in Minato, Tokyo, Japan and the world's fifth largest media conglomerate measured by revenues. SONY is one of the leading manufacturers of electronics products for the consumer and professional markets. The Game is an important industry, SONY launches "PS3" in the middle of 2006, and it also strengthens self-developed video games software. We focus on the PlayStation of SONY Corporation to analysis the market structure and the competitors (XBOX of Microsoft, WII of Nintendo) A. Nature of demand 1. The buyers currently go about buying existing products of SONY considering the number of stores shopped, the consumers will feel that the more stores sell one item, the more popular the product is. For example, there are many different types of SONY Digital Single Lens Reflex Camera, but most stores only sell α35,α390, buyers may propensity to buy this two types. Buyer will buy SONY`s products when they are sold in different stores. The buyers also consider the industrial sources, as a consumer, we all want to the best raw material, intermediate material and final material, thus the industrial sources is the key factor. The display screen...
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...CHAPTER 4 Focusing Marketing Strategy with Segmentation and Positioning These days Nintendo rides high in the video game world. Its DS handheld game, Wii (pronounced “we”) console, and games with characters like Mario and Zelda sell millions of units. The key to Nintendo’s success comes from meeting the entertainment needs of different groups of customers. Back in the 1980s, Nintendo was a 100-year-old Japanese manufacturer of toys and playing cards. If Nintendo managers had continued to just think about the “toy market,” the firm probably wouldn’t even be around now. Instead, they saw profitable new opportunities in the broader “entertainment seekers market.” In 1985, they released the Nintendo Entertainment System (NES) and interactive video games such as Super Mario Brothers. In those early days, video game consoles and software from different producers were quite similar. Even so, Nintendo’s NES stood out as offering better value. And Nintendo’s profits took off because once a household owned a NES console, it qualified as a prime target for new Nintendo games. As the market evolved, Nintendo developed more new products focusing on the needs of different groups of customers. In the 1990s, its popular handheld system, Game Boy, successfully delivered portable fun to kids. Another group of customers, the “hard-core gamers,” played complex and realistic games requiring consoles with high-speed processors and better graphics, so Nintendo offered them its GameCube console...
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