...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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...Group 5 Group 5 Group Members: _ Hoang Ngoc QuynhAnh _ Pham ThanhTu _ Truong ThanhThao _ PhungNhuThao _ Le Vinh Hoang Minh _ Tran DinhHuy _ Mai Quoc Tuan Case Executive Summary Nintendo’s Strategy in 2009 Bachelor of Business – BBUS 2012 Subject: Strategic Management Date of presentation: 11/4/2012 2012 Strategic Management Project Assignment Cover Sheet We agree that all group members have contributed equally to the group work. Table of Contents I. INTRODUCTION: 3 II. ANAYLYSIS OF INDUSTRY AND NINTENDO COMPANY: 3 1. Industry circumstances: 3 2. Key success factor: 3 3. Competitively important resources and capabilities of Nintendo: 4 III. ISSUES AND RECOMMENDATIONS FOR NINTENDO: 6 Table of Figure Figure 1: Estimated Industry Revenue by Platform Holder 8 Figure 2: Estimated Console Software Dollar Sales 8 INTRODUCTION: This paper will provide a general look inside the market supremacy in the console segment of the video game industry. It also shows the strategic issues and recommendations for Nintendo company. ANAYLYSIS OF INDUSTRY AND NINTENDO COMPANY: 1. Industry circumstances: Sales of video game consoles, software, and accessories reached a record high of $23.1 billion in 2008, which was 19 percent greater than 2007 industry revenues. Growth in the industry had fluctuated significantly over the past few decades and had been driven by technological and society trends, among other factor. Despite the increasing...
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...products, ways of staying number one by making the Wii system, and establish a certain standard for leadership to possess. The evolution of the video game industry in term of competition and technology for Nintendo can be traced back to Japan, where the founder of Nintendo started to make strides in technology in the 1990s (Farhoomand, 2009). Yamauchi, the president of the company, launched a video game system called the Super NES that competed in American against their rival Sony PlayStation. The Super NES’ system used a chip bate technology that allowed for easier access to create video games which permitted software programmers and consumer to benefit tremendously from it because of the amount video game copies it sold in 1985 (Farhoomand, 2009). Nintendo did not want to do with the cheaper software of Sony because it did not allow for more storage and could be easier broken by a consumer which left parents less likely to buy their products. Also Nintendo was very on point for having brand names that allowed consumers to know their favorite characters regardless of the particular game. Such allowed for Nintendo to brand themselves as the only creators of Super Mario Brothers and Zelda’s quest of finding Link type of video games. Lastly, from the early success of Nintendo they...
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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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...Nintendo’s Strategy in 2009: The Ongoing Battle with Microsoft and Sony Candice Elsesser June 13, 2013 Provide an overview of the company. Include any information you think is pertinent to this company (5 points) Nintendo is a company that creates video games and game consoles. Nintendo is the creator of the Game Boy, Super Nintendo, Nintendo DS, Nintendo 64, Nintendo GameCube and of course the Wii. Nintendo is only one of the few companies that create gaming systems, and is in constant competition with Sony (PlayStation) and Microsoft (Xbox). Nintendo’s revenues in 2009 were $19,308.1 million, with a net income of $2,930.8 million. 1. What are the defining businesses and economic characteristics of the video game console industry? What is the industry like? (10 points) 2. What is competition like in the video game console industry? Do a five-forces analysis to support your answer. Complete the following as part of your answer. Make sure to explain the reasons for your answers. (10 points) a. The bargaining power and leverage of buyers is a ________ competitive force b. The bargaining power and leverage of suppliers is a _______ competitive force. c. Competition from substitutes is a _______ competitive force. d. Threat of entry is a ________ competitive force. e. Rivalry among competing video game console producers is a _______ competitive force. Overall assessment: ...
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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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...paying careful attention to their customers and continuous improvement with their product lines. 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 treat every customer with attention, consideration and respect. By listening closely to our customers, we constantly improve our products and services. Vision Statement 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 highest quality, but to treat every customer with attention, consideration and respect. By listening closely to our customers, we constantly improve our products and services. Nintendo Corporation feels an equal commitment toward our employees. The Company wants to maintain an atmosphere in which talented individuals can work together as a team. Commitment and enthusiasm are crucial to the high quality of our products and support services. We believe in treating our employees with the same consideration and respect that we, as a company, show our customers. History 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...
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...2013 Introduction Nintendo Co. Ltd, founded by Fujisaro Yamauchi in 1889, began as a playing card business in Kyoto, Japan and, decades later, expanded to video game production. Nintendo released its first game console, the Nintendo Entertainment System (NES), in 1985 (Nintendo, 2013). The NES became an instant hit and set Nintendo to be a pioneer in the game console industry throughout the 1990s. Gradual Decline Nintendo enjoyed tremendous success as it continuously released new consoles: Nintendo 64, Game Boy, Game Boy Advance, GameCube, and more. However, the company faced increasing competition in the early 2000s from Microsoft’s Xbox and Sony’s PlayStation consoles and its market share started to decline. In 2003, Nintendo’s share price fell sharply when Sony announced its PlayStation Portable (PSP), threatening the monopoly that Nintendo held on the portable console market (Kendall, 2009). Change in Strategy In an industry that competes based on delivering the latest technology, Nintendo’s newly promoted president, Satoru Iwata, took the company in a new strategic direction to restore the company’s former glory. Challenging the long-time video game market of boys, young men, and “serious gamers,” Nintendo decided to change their strategy and target those outside their traditional demographic: women, seniors, and families (MaRS, 2010). Rather than focus on the latest graphics processors, hardware design, or engine speed, Nintendo took a new “fun and...
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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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...……...…......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 on the video games market, on hardware and software. Nintendo Company was created in 1889...
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...Sony Marketing Assignment Stefan van der Fluit (1122828) Analyse issues in the Company Case from a Strategy perspective, and then discuss one of the issues identified. (50% marks) Stefan van der Fluit (1122828) Gaming has been around ever since the invention of computers, being a great form of inexpensive entertainment. In 1993 Sony realized the true potential gaming had to offer and decided that they wanted a piece of the cake; Sony Computer Entertainment was born. A year later, Sony’s released the PlayStation. Ever since then the PlayStation brand has been a true icon amongst the gaming and home en tertainment community. Due to the rise in competition, Sony has to keep on innovating in order to keep attracting current/new customers. Using Porter’s five forces analysis this paper will identify the issues Sony faces in the marketplace. For the sake of simplicity I will focus on Sony’s latest game consoles: the PlayStation 3 and PSP. Porter’s 5 Forces Analysis: Bargaining Power of Suppliers: As Sony is quite a large corporation this means that they also have a considerable supplier database. The advantage being that if there were to be a problem with a supplier for any reason, Sony could easily switch to one of their many other suppliers.1 In order to reduce the risk of a supplier lock -in scenario, Sony Co-Develops both the CPU’s2 and GPU’s for the PlayStation Three (CPU being the Processor and GPU being the Graphical Processing Unit), as well as using...
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...Nintendo COMPANY NAME: Nintendo INDUSTRY: Gaming COMPANY WEBSITE: (www.nintendo.com) BACKGROUND/HISTORY/COMPANY TIMELINE: First, we will look at the Nintendo Corporation’s timeline. Before home games systems were even created kids used to have to go out to the arcade and bring plenty of quarters to play games. Parents used to be worried because anything could happen to their kids on the way to, at, and coming from the arcade. With this threat gamers came up with an idea to make a home game system, “Introduced in 1985, the NES was an instant hit. Over the course of the next two years, it almost single-handedly revitalized the video game industry. Selling over 60 million units, people brought games like Mario and Zelda into their homes for the first time on the NES (Corporate, 2011)”. With the success of that game system Nintendo picked it up a notch and came out with the Nintendo game boy in 1989, that system sold 150 million systems worldwide. With the success of that game system they dropped the Super Nintendo in 1991 which sold 49 million worldwide. Then with five years to develop, with 3D graphics they dropped the Nintendo 64. Since they were seeing so much success they produced the game boy pocket, “It was smaller than the original Game Boy and came in a variety of colors (Corporate, 2011). The in 01’ the game boy advance came out and it brandished better graphics than all the rest of the other game boy’s. The same year Nintendo disrespected the competition...
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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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...COMPANY NAME: Nintendo Co.,Ltd WEBSITE: www.nintendo.com INDUSTRY: Video game industry BACKGROUND/HISTORY/TIMELINE: “Nintendo Company Ltd .was founded in 1889 as a producer of Japanese playing cards, but by the 1980’s the corporation had turned its attention towards the production of video game hardware and software”. “Since then, Nintendo has gone on to become the third most valuable company in 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...
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...Nintendo’s Strategy in 2009: The Ongoing Battle with Microsoft and Sony Persaingan supremasi pasar segmen industri konsol video game dimulai pada musim liburan 2006 ketika sony dan Nintendo melaunching konsol generasi terakhir mereka untuk bersaing dengan Xbox 360, yang telah keluar di pasar pada musim belanja natal 2005. Analisis video game dan penulis majalah gaming dan web game terpukau dengan kemampuan grafik Sony PlayStation 3 (PS3). PS3 setara dengan Microsoft Xbox360 dari fitur yang dimiliki tetapi blueray PS3 drive jauh lebih unggul dari Xbox360. Ketika Sony dan Microsoft saling terikat dalam perang teknologi , para analisis video game dan penulis terkejut oleh keterbatasan teknologi dari Nintendo Wii, yang bahkan kemampuan grafik dan prosesingnya lebih buruk dari PS3 dan Xbox dan hanya sedikit lebih baik dari generasi ke-6 microsoft (PS2). Para analisis industri dan pegamers berat melihat Wii seperti mainan, karena kemampuan grafik yang lemah serta DVD game yang sedikit dan namanya kekanak-kanakan.Beberapa analisis industry video game melihat Wii sebagai upaya terakhir dari sebuah perusahaan perebutan yang pernah mendominasi industry video game dunia dan kemudian menjadi semakin tidak relevan setelah Sony memasuki pasar dengan PlayStation pertamanya. Sebenarnya nintendo tidak setuju jika Wii tidak menawarkan kualitas gambar yang terbaik serta fitur dan kemampuan yang luas.Penurunan penjualan dan pangsa pasar Nintendo pada segmen konsol video game sejak tahun 2000...
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