...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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...CONTENTS Introduction Page 2 Acer unveils Iconia dual-screen laptop Page 3 The Telegraph 24 Nov 2010 By Claudine Beaumont Asda set to create 7,500 jobs through expansion plans Page 4 The Independent 16 Nov 2010 By Jamie Grierson Microsoft sells 1m Kinects in 10 days Page 5 The Independent 17 November 2010 By Nikhil Kumar HSBC Reports slower growth and hints at HQ shift from London Page 6 Evening Standard (5 Nov 2010) Nick Goodway Appendices Page 7-8 Bibliography Page 9 Introduction The purpose of this report is to outline the continuous the external Business environment influences the decision made by particular firms and organisations. In this report, there will a summary and analysis of four articles which illustrate a particular change in the business environment and how such fluctuations can affect the organisation concerned. Acer unveils Iconia dual-screen laptop This article demonstrates the contemporary rapid changes in technology...
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...TOKYO—Grappling with a sluggish debut for its new hand-held game system and petering demand for its flagship home console, Nintendo Co. swung to a loss for the first nine months of its fiscal year and scaled back sales forecasts for its 3DS portable system and Wii. The Kyoto-based videogame maker also offered an even bleaker outlook for its full-year earnings for the year to March, saying Thursday that net losses will be three times greater than its projections in October as valuation losses on foreign-currency holdings from the strong yen continued to swell. The loss comes as Nintendo is replacing aging videogame machines with new ones, while trying to cope with the technological change in the industry, specifically smartphones and tablet computers offering simple-to-play games at a fraction of the price of games available on dedicated game machines such as the 3DS. For the full-year ending March, Nintendo expects a net loss of ¥65 billion on revenue of ¥660 billion. It had been projecting a loss of ¥20 billion yen on revenue of ¥790 billion. Nintendo's Wii game system was once a champion on the market but its popularity has waned. A successor, the Wii U, is set to come out later this year. Last February Nintendo introduced the 3DS, a hand-held game system with the ability to play 3-D games without the need for special glasses, but the initial consumer response was weak. To kick-start demand, Nintendo slashed the price of the 3DS by 40% in August. In the run-up to the...
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...Unit 9 Final Project Jasmine Good Kaplan University SC300 -21 Kathleen McKee June 17, 2012 Unit 9 Final Project I came home on Sunday night after out being out with some friends for dinner. It had already been dark for a few hours, so I figured my dog would be lying on the other side waiting as usual. I didn’t want to trip or fall on him; I didn’t want to hurt myself or him, so when I unlocked the front door the first thing I did was reach into the doorway and felt for the light switch to the right. I wanted to turn the light on in the in the foyer before walking in so that I could see where I was going, and where he was lying, but when I flipped the switch nothing happened. I had a situation. Why wasn’t my light working and how was I going to fix it? I went back to the car and grabbed a flashlight from my trunk. First, I had to identify my problem; I had no light in the dark. Next, I mentally compiled data relevant to the situation; I flipped the light switch and nothing happened. I then had a few different hypotheses. One, the light bulb was burned out. Two, there may have been a blown fuse, or three my bill payment was not received by the electric company. In order for me to figure out which, if any, of my hypotheses were correct, I had a few experiments to perform. First, I walked to the room closest to the front door which was the dining room and turned the light switch on; the light came on; therefore, I believe that my bill payment had been received by...
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...Under-7s 'should be banned from playing computer games or risk damaging their brains' By SEAN POULTER Last updated at 11:52 10 January 2008 ● Comments (20) ● Add to My Stories [pic] Experts fear computer consoles such as the Nintendo Wii harm child development Children should be banned from playing computer games until the age of seven because the technology is "rewiring" their brains, it is claimed. Bombardment of the senses with fast-pace action games is said to be causing a shortening of attention span, harming the ability to learn. The concerns emerged as technology industry experts gathered at a special summit discussing the development of children, held yesterday at the Consumer Electronics Show in Las Vegas. Educational psychologist Jane Healy said research indicated that computer games fuelled the development of basic "flight or fight" instincts rather than considered reasoning. "If you watch kids on a computer, most of them are just hitting keys or moving the mouse as fast as they can. It reminds me of rats running in a maze." She believes parents would be wise to keep children away from computer games until at least the age of seven to allow their brains to develop normally. Researchers from the Joan Ganz Cooney Centre, which investigates the relationship between children, the media and technology, said the average age that U.S. youngsters begin to use electronic gadgets has come down from just over eight to just over six and a half...
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...Nokia Warns Consumers of Fare Handsets Sold Locally 1. How will the proliferation of fake Nokia handsets affect the operations of Nokia Philippines? * I think the proliferation of fake Nokia handsets have a huge effect on the operation of Nokia Philippines. The emerged of fake Nokia handsets may destroy the Nokia’s top position in the market. Nokia may lost the overall mobile phone market share in the Philippines and may suffer from declining profit margins due to fake Nokia handsets. 2. What do you think is the main cause of such proliferation? * I think the main cause of such proliferation is that there’s an existing demand on fake Nokia product which consumers can buy in a cheaper price. Since the original Nokia handsets are expensive, buyers are drawn by the opportunity to own and display what it looks like the genuine Nokia phone at a fraction of the price of the original product. The important thing is to the consumers is to get what they believe to be the same product at a bargain price. In a country like the Philippines where greater part of the population are consider poor and low income, they are not capable of buying an original Nokia which is expensive. It is rational choice for them buying a fake Nokia which is less expensive but with inferior quality over the more expensive original. 3. What measures would you recommend to Nokia Philippines in order to alleviate, if not totally eliminate, the marketing of fake Nokia handsets? * Some measures that...
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...QUESTIONNAIRE (AFFECTING THE STUDY HABITS OF BLISS’ STUDENTS) Name: ___________________________ Date: _____________ Grade: __________________ Gender/Age:________________ General Directions: encircle the best answer on every question I. Self 1.How often do you: 1.1 study your lessons a. Almost always b. Often c. Sometimes d. Seldom e. Never 1.2 Find difficulties in your studies a. Almost always b. Often c. Sometimes d. Seldom e. Never 1.3 Take your studies seriously a. Almost always b. Often c. Sometimes d. Seldom e. Never 1.4 Maintain your grades at a high level a. Almost always b. Often c. Sometimes d. Seldom e. Never 1.5 Mind getting a fail, or even a fair, grade a. Almost always b. Often c. Sometimes d. Seldom e. Never II. Studies 1. Reading 1.1 Do you like reading a.) Yes b.) No A. If yes how many times in a day do you read a book a. 30 - 60 min. b. 2 – 3 hrs. c. 4 – 5 hrs. d. seldom e. others please specify _________________ B. If no why? ______________________________________________________________________ ...
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...Nintendo’s Wii Case Analysis SUMA11 Sec F Business Policy July 24, 2011 CASE ANALYSIS Nintendo’s Wii COMPANY NAME: Nintendo Corporation Limited. INDUSTRY: Video Game COMPANY WEBSITE: (www.Nintendo.com) COMPANY BACKGROUND: Nintendo was founded in Japan in 1889 by Fusajiro Yamauchi, originally they sold playing cards called hanafuda cards, a popular card game in Japan, after few decades in 1983 they became as a video game company, creating the first video console known as NES (Nintendo Entertainment System), with the advances of the technology they continue improving their systems and realizing more advanced consoles, in 1990 their release an improved version of the NES, the super NES (SNES), then in 1995 they created another console positioned as the #2 in sales at that time behind the first Sony playstation, the Nintendo (N64). The GameCube console was released in 2001 to compete with the new generation of video games like Sega Dreamcast, Microsoft XBOX and Sony Playstation 2, with very popular games like Mario Bros and Sonic, converting the characters of these games part of their image. In 2006 they created the Nintendo Wii, an extraordinary console with a great innovation technology; with a motion sensor allowing the user to play moving the remote control in the air adding realism and interaction between the user and the videogame. The other great characteristic of this console is the internet capabilities, Nintendo Wii was the first console...
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...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 to be the main direct Nintendo competitors. The point of contact is obviously gaming, but the point of differentiation is the gaming experience and extra features. Microsoft and Sony introduced HD gaming and graphics. The Xbox 360 offered good memory and quality graphics. The PS3 had moved ahead from the DVD to the Blu-ray format winning...
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...Nintendo Operations Nintendo Operations Nintendo has come a long way since the company was founded in 1889. The company has not always produced popular gaming consoles and video games. In the beginning the business was small and only made moderate profits off of playing cards. These cards became popular due to the popularity of gambling. After the cards a series of business ideas and failures until 1977 when Nintendo finally found it’s niche and introduced the Color TV Game 6. Since this release Nintendo has dominated the world of audio-visual entertainment and consumer products. In 2003 the structure of Nintendo planning was reevaluated. Initially there were only two groups within the company that planned but then this was split up into four groups to make the planning process for games easier and more efficient. These four groups and four men are solely responsible for the planning, goal setting, implementation, and monitor and control of their groups and their group’s responsibilities. It was clear early on that as the company grew and the products were introduced internationally that it would be necessary to break down the groups further from two four to ensure a better quality product within each group. The first group, Nintendo SPD 1, lead by Yoshio Sakamoto is responsible for developing titles like the WarioWare series and the Metroid titles on handhelds (3, p.1). Group number 2, Nintendo SPD 2, is managed by Hitoshi Yamagami and is responsible for...
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...What do you think demand for Wii Fit exceeded sales expectations by so much ? The key success factor for the Wii Fit was resulting from the right direction on identification market segment which exceeded the perceived value of “Wants” for target customer. In the meanwhile, the product and marketing strategy was in line with the demographic and psychographic segmentation to create the value to customers. * Nitendo identified the demographic segment for Wii Fit is “mass market” which no limitation on age, gender, family size, social class. They are probably be the first time game player like women, elderly, housewife or even they were not interested in game. * Based on the target segment group, Nitendo did the right strategy on the Needs and Wants from Psychographic perspective. Playing sport based on video games platform can create the new value (like more harmony, improve the communication) with their friends and family. Women also perceived it is the good way for doing sport at indoor and willing to purchase even they are not sport-oriented. * From the Maslow’s Hierarchy of Needs, customer bought the Wii FIT due to the need for recognition, esteem, or belonging. The larger shortage of product, the greater demand on getting it. * Good product strategy with user friendly features, according to the article (Brain 2006), it pointed out that Wii didn't boast all the features and processing firepower of its technology. Nintendo believed the user-friendly was very significant...
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...Should Video Games be Classified as Sports? As the title says, chess is a sport. It requires strategy, is played worldwide, and is a competitive game. Those same principals can, and are - applied to video games. In my personal opinion, gaming takes much more mental prowess than say chess. You have to learn how your opponents play, you have to practice, and you have to understand the rules of each game - and how each game works. Unlike other sports, such as football, soccer, basketball, and etc. - gaming is not focused on one specific game. There are hundreds upon hundreds of individual games, all with completely different styles and methods of playing. From FPS' to RTS', both that are almost completely unalike - but they all go under the name of 'gaming'. Although some may not like it, and I am not sure why - gaming is now the most popular form of entertainment in the United States, going ahead of the movie and music industry. That's quite a feat to accomplish, and both the movie and music industry have been around for well over a decade - while gaming has only been around for around half of that. The difference between movies, television, and music - is that you aren't experiencing something that someone else is doing, but rather - you are the one interacting in a world where everyone is sharing the same experience with you. If we take all of this in, and add in the facts that there are formal teams, holding formal championships, and with monetary stakes and titles at hand...
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...Blue Ocean Strategy Paper Sarah Van Wyk MKT/421 April 19, 2015 Professor Phyllis Levith Blue Ocean Strategy Paper Blue ocean strategy is a business tactic that separates the market into “blue” and “red” oceans. Blue oceans relate to all of the industries that do not currently exist in today’s society. They are the “unknown market space, untainted by competition, where demand is created rather than fought over” (W. Chan Kim, 2004). In direct contrast to this notion are red oceans, which relate to existing markets with substantial competition and where demand is already severely exploited. Further reading will provide the importance of the blue ocean strategy in business, an example of a product that has captured this strategy, and an alternative red ocean scenario for that same product. What is Blue Ocean Strategy? Blue ocean strategy is a fresh way of thinking in the business world. It is an innovative approach that restructures the corporate mentality to focus on carving out new paths for business and industry. Its prime emphasis is to help companies better stand apart from their competition yet still keep costs low and is achieved by following four basic principles. The first is creating uncontested market space, followed by concentrating on the big picture, then reaching beyond existing demand and lastly, mastering the strategic sequence (W. Chan Kim, 2004). With these guidelines, blue ocean strategies capture new demand, make the competition irrelevant, build differentiation...
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...Index Introduction ………………………….……………………………………….……3 Industry analysis ……………………………..………………….……...…......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...
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...breaking the law of traditional industrial pattern and introducing a new arrangement focused on unserved and seemingly insignificant customers. When conventional business is focused on pushing limit of the existing technology’s performance to serve the mainstream market, disruptive technology focuses on different performance attributes and provides a product/ service beyond the market expectation. Disruptive technology is not necessarily technologically advance than the existing technology but it is an innovative approach to serve existing unattended and anticipated emerging market. It might not outperform the established technology but it will outperform market in long run. Disruptive product brings customer value proposition. Along with Wii, Apple I- tunes radio and atomic bomb are additional example of disruptive technology use. The first principle of disruptive technology is to spot the opportunity for new product but not to analyse it through traditional customers and marketing expert’s lenses. It is imperative to divert focus from existing market and focus on foreseen emerging market. Disruptive technology might have comparatively lower cost structure, hence lower expected revenues and profit margins. The last yet equally important principle is not to compare the performance of disruptive product with existing market demand or sustainable product. As a disruptive technology can change the whole game of business, while determining whether a technology is disruptive or not...
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