Nintendo Case StudyBy Dana Gwyther19008093
Executive SummaryIn essence, the video game and console industry is defined by continual change, innovation and vicious rivals (Williams, 2002). The organisation Nintendo, is one of the most iconic companies which has strived in the gaming industry for 120 years, in 1889. (Parr, 2012) Throughout Nintendo’s duration has transitioned from a company who originally manufactured and sold playing cards to being a well-known mechanical and high tech company. (Fast Company, 2008).In examination of Nintendo’s current business level strategy is shows its current capability to influence components of competencies and value adding activities. In alignment, with all three business models resource base, activity system and product offering components contribute to Nintendo’s achievement in competitive advantage which can be seen in Appendix 1( Components of a Business System: Product offering/ Value Proposition).Although, in Nintendo’s effort to be known as one of the most innovative and successful enterprise within its industry, have recently hit a bottleneck. It faces continual change of trends such as occasional gamers who reverse to mobile gaming and strong rivals. These including Sony and Microsoft, who have heavily effected Nintendo sales and stock prices. (Parr, 2012) Resulting in Nintendo’s top management to create new business model strategiesto terminate entrants and poor results. (Schimdt, 2014). In relation to Nintendo’s activist of shareowners value perspective, establishes first-rate process in their support activity system that subsidise their competitive advantage. (review Appendix 1: Components of a business system: activity/value chain)Today, Nintendo’s corporate strategy is vulnerable to the charismatic global environment which it engages in. Any businesses success, just like Nintendo are reliant on it capacity to withheld from the negative effects of economic, socio-cultural, technological and political environmental factors within constantly emerging gaming industry. (Review Appendix 2: Drivers of Industry Development/ PEST). In partnership, organisations must efficiently counteract to a variation of industry competitors. (Review Appendix 3: Porter’s Five Forces of Industry Rivalry).
Consequently, Nintendo has prompts its ability to upgrade resources, value chain and productoffering more rapidly than competitors. Hence, increasing competitive dependability and sustaining competitive advantage over rivals. (Wit, B & Meyer, R 2015) This is demonstratedthrough Nintendo efforts in decreasing pressure in both internal and external environments. In close analysis, gaps within the business and corporate level strategy must be raised in orderfor Nintendo to preserve their competitive advantage. Therefore, the following proposition must be for future strategic planning and management.
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- Wii, Video game console, Nintendo, Shigeru Miyamoto