...NINTENDO CO., LTD. V’S THE COMPETITION ASSESSMENT EVENT 1 - Analyse and Present Research Information UNIT-BSBRES401A 1) INTRO The world’s electronic games industry is dominated by three players; *Nintendo, Microsoft and Sony.* Further Information about the products of these companies can be found on Page 6 – Comparing Nintendo Wii To Xbox 360 And Playstation 3 This compiled research report is about Nintendo Co., Ltd.& the competition they face in the gaming industry. The purpose is to conduct market research and analysis of the corporate strategy of an organisation and the The key objective is to determine the future potential for Nintendo Co., Ltd.and the gaming industry. My research is to be based on Nintendo Australia including information Nintendo Japan HQ. The gaming console I have chosen to focus on is the Nintendo “Wii”. As can be seen in Appendix Figure 2, The Nintendo Wii is designed in a very modest way. It is possible to purchase this product in white and black colour. The console itself is very innovative and easy to handle. The system is called motion controlled gaming and it is also possible to connect to the Internet. 1. This first section of the report we will begin with a brief look at Nintendo’s history, the target audience, products and the sources and methodology used. 2. In the second section of the report we will look at how the research was undertaken along with the analysis of the information gathered from a survey I conducted...
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...While we await a potential increase in hardware sales, even Nintendo would admit that the Wii U has underperformed in its debut year. With poor sales to date and a year’s head start over its next-gen competition arguably squandered, the Wii U is in the unenviable position of heading into its first anniversary with yearly sales below that of the console it has succeeded. That’s not to say there haven’t been success stories; New Super Mario Bros U, LEGO City Undercover and Pikmin 3 all sold well to a small install base, but with Nintendo constantly downgrading its forecasts in the last financial year, the system’s not currently in a healthy position. The biggest cause of all this? The games, or lack thereof. It’s no secret that the Wii U has had an absence of big hitting software since March, and has only recently started seeing some notable titles, with Pikmin 3 heralding what should be a great end of year for the console. Games sell games consoles, and that is an area where it’s been lacking. But marketing sells games, and if the Wii U has been short of games, it has also arguably been short of marketing that can overcome that issue. Marketing can make or break any product, and while the Wii brand remains strong thanks to the last generation, people need to know that these new games exist, and for a brand new console. With a big autumn of games on the horizon, the marketing message needs to be strong, so what can Nintendo do to get the Wii U idea out to the masses...... Full Site...
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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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...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 9 7. SWOT analyses...
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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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...[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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...industry is the economic sector involved with the development, marketing and sale of video and computer games. It includes video game consoles, game software, handheld devices, mobile games and online games. The video gaming industry has been growing exponentially in recent years with Sony, Microsoft and Nintendo competing for the higher profits in the market. This essay will analyze each of the five forces acting on the industry: threat of new entrants, threat of substitute products or services, bargaining power of buyers, bargaining power of suppliers, and the competitive rivalry among existing firms. Then it will be determined if the video game industry is still an attractive industry for Sony. The video game industry has high entry barriers because of its high research and development costs, and capital investment needed to start a business in the console industry. The cost required to develop and manufacture a product that could be a decent competitor in this market is too great for a non-established company in this industry. The technology that is needed to be successful is too advanced for new competitors to achieve. For this reason, the threat to Sony, Microsoft and Nintendo of new entrants, was not very high in 2008. Additionally, Sony’s PlayStation, Microsoft’s Xbox, and Nintendo’s gaming systems were very well established names in the industry. The prestige of these products was so strong that it would be extremely difficult for a new company to enter the field successfully...
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...Nintendo, Co Ltd. (NTDOY) By: Sarah Thompson For Dr. Eberle Principles of Finance Research Paper November 22, 2014 Table Contents Pages Title Page…………………………………………………………………………………...1 Table of Contents……………………………………………………………………...……2 Brief Introduction & Organizational Structure…………………………………………. …3 Brief Discussion of Products, Services and Markets ……………………………...…….4 Financial Statement Summary………………………………………………………...…....5 Ratio Analysis /Interpretation / Capital Structure ………….………………………..……..6-8 Stock Valuation……………………………………………………………………….….....9 Growth Strategy & Tactics…………………………………………………………………10 Risk Exposures……………………………………………………………………………..11-12 Analyst Opinions and Professional Assessments………………………………………..13 Current Event……………………………………………………………………………….14 Conclusion………………………………………………………………………………….15 References………………………………………………………………………………….16 Brief Introduction & Organizational Structure Nintendo, Co Ltd. is a Japanese multinational consumer Electronics Company with its headquarters located in Kyoto, Japan. Nintendo is the world's largest video game company by revenue. Nintendo’s American headquarters is located in Redmond, Washington. The mission statement is “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 provide products of the...
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...mobile devices have failed to offset an overall decline. Taking into account digital downloads, consumers probably spent almost $1.6 billion on games last month, NPD analyst Liam Callahan estimated. New video-game sales for this month will probably decline 5 percent from a year ago, which would be the best result for the industry in nearly 12 months, Arvind Bhatia, an analyst at Sterne Agee & Leach Inc., said in a research note today. The industry is gearing up for the peak holiday shopping season beginning in November. Among nearly a dozen tent-pole game titles from major developers, Microsoft Corp. (MSFT) releases the next installment of its $3 billion Halo franchise, while Activision Blizzard Inc. (ATVI) will begin selling “Call of Duty: Black Ops II.” Console Sales Microsoft held the lead in console sales in September for the 21st consecutive month. The Redmond, Washington-based company said in a separate statement that U.S. retailers sold 270,000 of its Xbox consoles last month. That’s down 38 percent from 438,000 players sold a year earlier. Nintendo Co., based in Kyoto, Japan, said in its own e- mailed statement that sales of...
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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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...Court Rye Market Research Nintendo DS – Marketing Strategy Problem/Situation Description: Ten years ago Nintendo dominated both the console and handheld gaming industry. Today the gaming industry has grown so much that it is competing directly with the movie industry! Growth in this industry is occurring in the demographic of 18-34 year olds. Nintendo is primarily focused on 5-17 year old gamers with its first party software, especially in the handheld gaming market. As the industry expands Nintendo is struggling to retain market share percentages as their primary market of young male gamers is already saturated. Marketing Objectives: Increase Nintendo’s market share and boost sales without losing touch with the current market of 5-17 year old males. Target Audience: The suggested target audience for Nintendo to expand towards is 5-17 year old females. Budget: The three tools suggested for reaching the target consumer most effectively are TV commercials, movie theater pre-show trailers, and the actual casing and packaging of the product. A high quality 30 second commercial is estimated to cost $100,000 to $350,000 dollars. Movie trailer slides are estimated to start at $1500+ for a four week period. Casing and packaging redesign costs are unknown but estimated to be relatively small when spread over the number of units being produced. Total costs for the Nintendogs Pink DS promotion would be nearly $30 Million dollars over the span of four months. Strategy:...
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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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...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...
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...Case study 1 – Nintendo Strategy in 2009 Strategic Management For Bachelor of Business (Hons) 1. What are the defining business and economic characteristics of the video game console industry? What is the industry like? The video games industry in essence has brought arcade video games to the home of the user. Firms involved in the games console industry design, manufacture and bring to the market a host of video games consoles and games software. The introduction of the video game console in the early eighties allowed users to play video games at home by connecting the console to the users TV as opposed to traditional coin operated video games machines found in arcade centers. This innovation allowed the video game console industry to grow as the size of the potential market increased. The industry has seen periods of growth and decline over these past few decades with record sales of $23.1 billion in 2008. External factors are those factors relating to and impacting on business growth over which a firm has no direct influence or control. Such factors affecting growth within the video games console industry include advances in technological factors. These relate to not only how the games console looks and performs (graphics and speed) but also in the processes and operations involved in bringing the console to market (R&D and value chain). Increasing internet availability and trends towards online gaming will also impact...
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