...ALI 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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...Evolution of Innovation in the Field of Video Games Zachary Speltz Grand Canyon University: LDR 640 October 12, 2015 Evolution of Innovation in the Field of Video Games The evolution of the video game industry has made it very competitive in terms of having the latest and greatest technology to produce revenue. There are three major companies that are constantly competing for the results which allows for better innovated products. The consumer can see the evolution of in their video game products as well as seeing the Nintendo’s strategic plan of overcoming their competitor’s 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...
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...Analysis •Porter’s 5 Forces Analysis •The Industry Life Cycle •Nintendo’s Key Success Factors Presentation Overview (1/2) •Analysis of Key Uncertainties •Analysis of Future Trends •The Scenarios & Implications •Conclusion •References A Brief History of Video Games Atari to Wii Introduction (1/2) • Video games have been around since the 1940s. • Over the decades, game machines continuously evolved to become powerful machines capable of stunning visuals and graphics. • In the mid 2000 to 2007, social media, smartphone and tablet technology entered the gaming scene. • Casual games become the norm attracting previously non-gamers into the market. Introduction (cont 2/2) • As the dominant force of the mobile and gaming market, in the next coming 5 years, where does Nintendo see itself competing with threats from smartphones and other gaming platforms taking up its share of the market? • Scenario planning : To make strategic decisions that will be a sound foundation for all plausible and possible future scenarios. Company Profile (1/3) • Founded in 1889 in Kyoto, Japan by Fusajiro Yamauchi. • Manufacturer of Hanafuda “flower” cards • Expanded in 1960s by Hiroshi Yamauchi. • Following the crash of the cards business, Nintendo entered the toy industry upon discovering Gunpei Yokoi, a mechanical engineer. Company Profile (2/3) • 1970: Yokoi teamed up with Shigeru Miyamoto to create games – The Father of Modern Video Gaming, creator of iconic franchises including...
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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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...In 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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...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 and 1985 respectively. The company also led the handheld gaming industry with its release of the...
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...Street Journal Article 4 I B. Executive Summary ..5 II. External Analysis ..7 II A. Industry Definition ..7 II B. Six Industry Force Analysis ..8 II C. Macro Environmental Forces Analysis, Economic Trends, and Ethical Concerns ..15 II D. Competitor Analysis ..17 II D. 1 Netflix’s Competitors ..17 II D. 2 Netflix’s Primary Competitors ..17 II D. 3 Primary Competitors’ Business Level and Corporate Level Strategy ..18 II D. 4 How Competitors Achieve Their Strategic Position ..18 II D. 5 Willingness to Pay ..21 II D. 6 Comparative Financial Analysis ..22 II D. 7 Implications of Competitor Analysis ..23 II E. Intra-Industry Analysis ..24 III. Internal Analysis ..24 III A. Business Definition/Mission ..24 III B. Management Style ..24 III C. Organizational Structure, Controls and Values ..25 III C. 1 Organizational Structure ..25 III C. 2 Organizational Controls ..25 III C. 3 Organizational Values ..25 III D. Strategic Position Definition ..26 III D. 1 Corporate Level ..26 III D. 2 Business Level ..27 III D. 3 Resource & Capability Level ..28 Value Minus Cost Profile ..28 Value Chain ..28 VRIO Analysis ..28 Consumer Retention Analysis ..29 4Ps Analysis ..29 Product Life Cycle ..30 III E. Financial Analysis ..31 III E. 1 Netflix Financial Performance Analysis ..31 III E. 2 Valuation of Netflix ..32 III E. 3 Scenario Analysis ..33 IV. Analysis of the Effectiveness of the Strategy ..34 V. Recommendations ..35 V A. Short-Term and Long-Term Recommendations ..35 V...
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...Continues, 395 2. Arun Ice Cream, 409 3. Gujarat Co-Operative Milk Marketing Federation Limited (GCMMF), 421 4. The Park, Calcutta, 439 5. Kanpur Confectioneries Private Limited (A), 461 6. Kanpur Confectioneries Private Limited (B), 467 7. Aravind Eye Care System: Giving the Most Precious Gift, 473 8. ITC Limited, Bangalore (A), 495 9. ITC Limited, Bangalore (B), 499 10. The Living Room: Redefining the Furniture Industry, 505 11. Cognizant: Preparing for a Global Footprint, 515 12. One Mission, Multiple Roads: Aravind Eye Care System in 2009, 535 13. Wal-Mart Stores, Inc. (WMT), 555 14. Alibaba.com, 583 15. Apple Computer, Inc.: Maintaining the Music Business While Introducing iPhone and Apple TV, 597 16. Blockbuster Acquires Movielink: A Growth Strategy?, 615 17. A Horror Show at the Cinemaplex?, 627 18. JetBlue Airways: Challenges Ahead, 635 19. Blue Ocean Strategy at Henkel, 655 20. Nucor in 2009, 663 21. TNK-BP (Russia) 2008, 687 22. Barclays: Matt Barrett’s Journey—Winning Hearts and Minds, 701 23. Nintendo’s Disruptive Strategy: Implications for the Video Game Industry, 707 Coca-Cola vs. Pepsi in India: The Battle of the Bottle Continues Case 1 S. Manikutty Soft drinks or cool drinks, as they are known in India, refer to non-alcoholic drinks served in bottles or other packaging, to be distinguished from hot beverages such as coffee and tea, or cold beverages such as squashes and fresh lemon syrups or syrups of different flavors mixed with water. Soft drinks consist of...
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...Technology Ventures From Idea to Enterprise is p r bite ohi d. se The pre na limi ry p s age are p are rep d fo r s ent tud s of D ho r. T ma Any s. yer sB oth e e r us se The pre na limi ry p s age are p are rep d fo r s ent tud s of D ho r. T ma Any s. yer sB oth e e r us is p r bite ohi d. Technology Ventures From Idea to Enterprise d. Thomas H. Byers Stanford University se The pre na limi ry p s age are p a Richard C. Dorf . Thom f Dr University of California, Davis so t den stu r d fo Andrew J. Nelson are rep University of Oregon Any s. yer sB oth e e r us is p r bite ohi TECHNOLOGY VENTURES: FROM IDEA TO ENTERPRISE, THIRD EDITION Published by McGraw-Hill, a business unit of The McGraw-Hill Companies, Inc., 1221 Avenue of the Americas, New York, NY 10020. Copyright @ 2001 by The McGraw-Hill Companies, Inc. All rights reserved. Previous editions © 2008 and 2005. No part of this publication may be reproduced or distributed in any form or by any means, or stored in a database or retrieval system, without the prior written consent of The McGraw-Hill Companies, Inc., including, but not limited to, in any network or other electronic storage or transmission, or broadcast for distance learning. Some ancillaries, including electronic and print components, may not be available to customers outside the...
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...THE FUTURE OF TECHNOLOGY OTHER ECONOMIST BOOKS Guide to Analysing Companies Guide to Business Modelling Guide to Business Planning Guide to Economic Indicators Guide to the European Union Guide to Financial Markets Guide to Management Ideas Numbers Guide Style Guide Dictionary of Business Dictionary of Economics International Dictionary of Finance Brands and Branding Business Consulting Business Ethics Business Strategy China’s Stockmarket Globalisation Headhunters and How to Use Them Successful Mergers Wall Street Essential Director Essential Economics Essential Finance Essential Internet Essential Investment Essential Negotiation Pocket World in Figures THE FUTURE OF TECHNOLOGY THE ECONOMIST IN ASSOCIATION WITH PROFILE BOOKS LTD Published by Profile Books Ltd 3a Exmouth House, Pine Street, London ec1r 0jh Copyright © The Economist Newspaper Ltd 2005 All rights reserved. Without limiting the rights under copyright reserved above, no part of this publication may be reproduced, stored in or introduced into a retrieval system, or transmitted, in any form or by any means (electronic, mechanical, photocopying, recording or otherwise), without the prior written permission of both the copyright owner and the publisher of this book. The greatest care has been taken in compiling this book. However, no responsibility can be accepted by the publishers or compilers for the accuracy of the information presented. Where opinion is expressed it is that of the author and does not necessarily...
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...CONNECT FEATURES Interactive Applications Interactive Applications offer a variety of automatically graded exercises that require students to apply key concepts. Whether the assignment includes a click and drag, video case, or decision generator, these applications provide instant feedback and progress tracking for students and detailed results for the instructor. Case Exercises The Connect platform also includes author-developed case exercises for all 12 cases in this edition that require students to work through answers to assignment questions for each case. These exercises have multiple components and can include: calculating assorted financial ratios to assess a company’s financial performance and balance sheet strength, identifying a company’s strategy, doing five-forces and driving-forces analysis, doing a SWOT analysis, and recommending actions to improve company performance. The content of these case exercises is tailored to match the circumstances presented in each case, calling upon students to do whatever strategic thinking and strategic analysis is called for to arrive at a pragmatic, analysis-based action recommendation for improving company performance. eBook Connect Plus includes a media-rich eBook that allows you to share your notes with your students. Your students can insert and review their own notes, highlight the text, search for specific information, and interact with media resources. Using an eBook with Connect Plus gives your...
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...did much of copyright law, fair use originated as a judicially unacknowledged effort via the law to validate certain favored practicesand patterns.In the main, it has continued to be applied as such, though too often courts mask their implicit validation of these patterns in the now-conventional "caseby-case" application of the statutoryfair use "factors"to the defendant's use of the copyrighted work in question. A more explicit acknowledgment of the role of these patterns in fair use analysis would be consistent with fair use, copyright policy, and tradition. Importantly, such an acknowledgment would help to bridge the often difficult conceptual gap between fair use claims asserted by individual defendants and the social and cultural implications of accepting or rejecting those claims. In immediate terms, the approach should lead to a more consistent and predictable fair use jurisprudence.When viewed in light of recent research by cognitive psychologists and other social scientists on patternsand creativity, in broader terms, the approach should enhance...
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