...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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...measuring the environment (context) that they operate under while providing several suggestions of improving their communications to parties internally and externally. There this group is consisted of 3 members and the chosen industry and organization for this report is gaming consoles; Microsoft Xbox. While conducting our research on the context of the industry and Microsoft Xbox, several marketing tools were used to acquire this information. With the utilization of Asteroid Tabulation, we were able to acquire supporting information on consumers. This information would involve the use of the Roy Morgan surveying data base. By conducting marketing research through the use of Asteroid and Roy Morgan resources the group was able to determine and observe formalities, and purchase and consumer behaviour of the customers. Other areas of context of the gaming console industry were analysed, one of the areas included the way Microsoft Xbox has communicated to prospective customers and current customers. In terms of marketing perspective; we will discuss the ideologies and perspective Microsoft Xbox are communicating to their customers. A situation analysis is also conducted in terms of the environment Microsoft and other gaming console company’s face. As competitors also determine the behaviour of how a corporation will behave, therefore to determine decision making in response to competitors, A SWOT analysis is conducted to identify strengths, weaknesses, opportunities and threats. Based...
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...Xbox One vs. Playstation 4 Media (Artifact paper) Mario Palomino Student ID: 1760440 BUSB 340 – Robert Liljenwall Due Date: February 23 2014 What hell is a Nintendo? I got my first video game console in the summer of 1991. My parents purchased it from SEARS for my birthday and at which point I had no idea what it was. A couple of the kids and their parents knew that it was and were shocked that my parents spend $100 dollars on something like that. It was still in the box until one afternoon I came home from school. I set it up in the living room, only room with a television. Popped in Super Mario Bros, this simple 8-bit game would change the entertainment industry. I did not become a fanboy until I attend Florida A&M. Besides my classes and football schedule, I usually spend my free time in my apartment. One of my friends back home told me about Microsoft’s Xbox gave gamers the ability to play against each other and they did not need to be in the same living room. Walked into a Game Stop and walked out with my first console since the Nintendo my parents got me so many birthdays ago. Once at my apartment, plugged everything in and started playing. Completely different from what I remember when I was eight years ago. Xbox became my gateway drugs, from hours of study, from the beating my body would take from football and boredom. History of Sony's gaming console Before Sony entered into the gaming industry they establish Sony Computer Entertainment (SCE) in mid-November...
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...Executive Summary Sony Computer Entertainment Inc. has the unique distinction of being the first and only company to have had market leadership for 2 consecutive console generations. However, in recent times, the ecosystem has changed to include a larger audience and usability has trumped technological superiority as a key metric in generating buyer interest. In 2008, Nintendo’s Wii had 2 times the market share that Sony’s offering, the Play Station 3, had. I feel Sony should assess the following options. (1) Focus on catering to its niche advance game segment and focus on leveraging its progress form the previous 2 generations. (2) Respond to Wii onslaught by developing its previous generation console to include a low end offering that directly competes with Wii. (3) Partner with Nintendo and others to strengthen offerings in the gaming console space, eliminating Microsoft and creating a “co-opetition” I recommend a combination of (1) and (3) to ensure sustained dominance in the gaming console market. I would not look to option (2) since it undermines SCEI’s position as a focused differentiator (Exhibit 1 in appendix) and also because this would be a knee jerk reaction forcing Sony to play on Nintendo’s terms. Analysis As evident from Porters five forces analysis (Exhibit 2) the console market is not very attractive for new entrants. . However, there is a huge growth opportunity for established players since there is only moderate buyer bargaining power and few substitutes...
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...The Challenge Of Maintaining Greatness in the Gaming Industry Strategic Management Professor : Yuri Mishina 12-12-2013 1 Table of Contents Executive Summary....................................................................................................................................... 3 Industry Analysis ........................................................................................................................................... 3 Threat of New Entrants ............................................................................................................................. 4 Power of Suppliers .................................................................................................................................... 4 Power of Buyers ........................................................................................................................................ 4 Substitutes ................................................................................................................................................ 5 Degree of Rivalry ....................................................................................................................................... 6 Firm Analysis ................................................................................................................................................. 7 Company Strategy ....................................................................................
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...Stakeholders Analysis of Nintendo in 2006. Consumers: In 2006 Nintendo President, Iwata, due to research mainly based on the Japanese video market identified a drop of sales and decided to change the company vision and strategy in regards to segmentation and reach out to an unexplored market until then. The main characteristic of the target market was the demand for easy to use, simple and fun applications. Even though the traditional target market until then was aiming to young males, Nintendo demographical target market was with no age or sex limitations or social status. The family and friends were of the highest interest for Nintendo (multiple target segmentation). With this approach Nintendo attempted to reach out to all non gamers with simple applications and realistic games. “Wii is designed to increase the social game play of videogames”. (2006-03-20: President Iwata) Company: In 2006 Nintendo launched the “Wii”. The name phonetically was a smart choice making us think that this game is made by “us” for “us”. The new console with its advanced and revolutionary features (Wireless motion-sensitive remote controllers, built-in Wi-Fi capability) made progressive sales with the most important profit the recognition. Nintendo Wii with 22% was found in the Top 10 for 2006 of the Most Memorable New Product Launches. Nintendo tried to position the “Wii” as a cool, no age limit, and low-budget alternative console. Competitors: Microsoft (Xbox 360), Sony (PS3) and Sega seem...
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...Management Professor Kellie McGilvary By: Allen Hager Omaha, NE July 29, 2011 Nintendo is now having to compete with Apple with their new 3DS game device and are having to cut prices to be competitive with the iPad, iTouch and iPhone devices. This is very important because, “Nintendo is showing the most acute signs of pain from a wave of technologies on which games have become a central pastime, including Apple's iPhone and iPad and social games on Facebook Inc.'s social network. Those technologies tend to attract a more casual gamer with mobile-game titles like Rovio Inc.'s "Angry Birds" and Facebook games like Zynga Inc.'s "FarmVille" and "CityVille” (Wingfield, 2011). Nintendo is finding out that the marketing of the new 3D device is not what people really want necessarily and do not want to spend $250 on one of these devices. They are lowering the price to $170 and offered free software to those who purchased it at the higher cost. The lowering of the price not only reflects the change in gaming but the bleak and weakness around the world economically. “The world is different today that it has been for every other platform transition in the past,” said John Taylor a videogame analyst at Arcadia Research in Portland, OR” (Wingfield, 2011). This problem with the 3DS is more notable because of Nintendo’s marketing and redefining of video games. While Sony and Microsoft were trying to incorporate Blu-ray players and other items, they were developing the Wii and...
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...play against friends during a road trip or a long flight? Well guess what? Us…good folks here at Microsoft have been working day and night to on some monumental news!!! Microsoft’s ambitions have been nothing short of amazing and being a huge pioneer in the IT industry, dating back to its inception in the early 1980’s. Microsoft is the world’s number one leading in software development and has controlled an overwhelming share of the personal computer operating system market. Microsoft’s products, do not stop at the development of software, nor operating systems; the company supplies the world with a number and variety of different types of products, including their office software, Zune (digital music player), CRM applications, sever and storage software, and last but not least XBOX as well as, the XBOX 360 video gaming consoles. Now that we are entering 2013, XBOX has stood by idle, in the portable gaming device market as we watched Sony & Nintendo dominate their way through this particular gaming market. Well now!! Microsoft has been absence for far too long, and it’s time to make our presence felt, which is why we have developed a brand new totally portable, online gaming experience. By venturing into this realm of gaming this will open doors as well as allowing us a huge market and opportunity to grow within. While the portable game industry is still led by Nintendo and Sony, mobile phones and other portable devices are quickly adding to...
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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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...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 and Cell chip MICROSOFT – a diversification move, addressing a potential threat...
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...Microsoft Microsoft started from humble beginnings in 1975, and soon rose to become one of the biggest companies in modern history. Today, Microsoft is having record revenues, making a total of $18.06 billion dollars last quarter (Forbes). Microsoft affects almost everyone’s life in the US daily, whether it is kids on their Xbox, to desk workers using Windows Office each day to accomplish their work, people use Windows every day. From Microsoft’s early beginnings to its multibillion-dollar company today, Windows has had success from the start, and will continue to for the coming decades. Two men in 1975; Bill Gates and Paul Allen founded Microsoft. (History of Windows) They started out with MS-DOS, their first operating system. The companies’ first headquarters was in Albuquerque, New Mexico, but after signing some pivotal contracts with IBM, they moved to their headquarters in Bellevue, Washington in 1979.(History of Windows) Working side by side with IBM to develop OS/2, Microsoft released their new product, Microsoft Windows. It was a graphical extension of MS-DOS. On March 13th, 1986, Microsoft went public, which would result in 4 billionaires and an estimated 12,000 millionaires being created from the ensuing rise in stock. (Forbes) Along with its partnership with IBM came allegations that they were trying to monopolize the computer industry. The Federal Trade Commission set its sights on Microsoft and began almost a decade of legal battles between Microsoft and the...
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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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...9-508-076 REV: APRIL 14, 2008 ELIE OFEK Sony PlayStation 3: Game Over? [W]hen you look at the history of the video game industry since the PlayStation was launched back in 1995, we were able to take the leadership position very quickly with the PlayStation. With PlayStation 2 we have more than 110 million gamers and consumers enjoying the PlayStation 2 on a worldwide basis. And I think we have a very loyal following for the PlayStation family of products. So with the PlayStation 3, I believe that we are going to be able to quickly take the leadership position once again and maintain that position for a very long time. — Kaz Hirai, President and CEO, Sony Computer Entertainment of America, November 17 20061 It was a picture that was reminiscent of the launch of the original PlayStation nearly a dozen years before. Some eager customers had arrived as early as 6am and from as far as New Jersey to a video game store in Manhattan with the hope of purchasing one of the newest and most sought after video game consoles. By 9am, the number of customers waiting for entrance to the store exceeded 100 and the line extended down the block. One customer in line had been searching stores across the region for two weeks in order to find a console for her brother’s twenty-fifth birthday. A twelve-year-old and his grandmother were visiting their third store in search of the new console. “I just hate what you have to do just to get one,” the boy said.2 In one sense, long...
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...I n t r o d u c t i o n t o M a r k e t i n g B u s i n e s s 1 2 0 4 / 1 3 / 2 0 0 8 A marketing plan focusing on Sony’s Playstation 3. Marketing Plan: Sony Playstation 3 2 Executive Summary This marketing plan is looking at Sony’s Playstation 3 (PS3). This powerful piece of hardware is the cutting edge of gaming entertainment. The PS3 has been out for a little over a year, and in that time, it has proved to be a hardcore gamers dream. Sony got into the console gaming market in late 1994. The concept for the original Playstation (it was under a different name, SNES CD) was actually brought up in a joint partnership with Sony and Nintendo in the late 80’s; however, when the time came to announce their new hardware, Nintendo re-read over their earlier contract and found the agreement to no longer be satisfactory. As a result, Sony took all the research they had done and began work on the Sony Playstation. 3 Table of Contents Situation Analysis ......................................................................................................................................... 4 Internal Environment ............................................................................................................................... 4 Key Executives ...................................................................................................................................... 4 Board of Directors ............................................................
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...Marketing Plan: Sony Playstation 3 Brian Moats A marketing plan focusing on Sony’s Playstation 3. Introduction to Marketing Business 120 4/13/2008 Executive Summary This marketing plan is looking at Sony’s Playstation 3 (PS3). This powerful piece of hardware is the cutting edge of gaming entertainment. The PS3 has been out for a little over a year, and in that time, it has proved to be a hardcore gamers dream. Sony got into the console gaming market in late 1994. The concept for the original Playstation (it was under a different name, SNES CD) was actually brought up in a joint partnership with Sony and Nintendo in the late 80’s; however, when the time came to announce their new hardware, Nintendo re-read over their earlier contract and found the agreement to no longer be satisfactory. As a result, Sony took all the research they had done and began work on the Sony Playstation. 2 Table of Contents Situation Analysis .......................................................................................................................................... 4 Internal Environment ................................................................................................................................ 4 Key Executives ....................................................................................................................................... 4 Board of Directors ........................................................................................
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