Lundy-Johnson, Michelle Case 24 Nintendo By: Michelle Johnson 1
Lundy-Johnson, Michelle COMPANY NAME, WEBSITE, and INDUSTRY Nintendo, , and gaming. BACKGROUND and HISTORY Nintendo Co., Ltd. is a Japanese multinational consumer electronics and video game company. Founder: Fusajiro Yamauchi Founded: September 23, 1889, Kyoto, Kyoto Prefecture, Japan CEO: Shuntaro Furukawa (Jun 2018–) Headquarters: Kyoto, Kyoto Prefecture, Japan Nintendo is the world’s oldest video-game company. The company is actively operating in the video-game market as one of the dominant companies in the gaming industry. Nintendo is affected by the external environment as there are significant changes in the overall gaming industry. For instance, policies are applied in Japan to curb the sales of violent games to minors. There are also changes in the demographics of gamers where there is an increase in adult and female gamers. Technological developments had also made smartphones a strong competitor for Nintendo’s video-game consoles. The threat of small gaming companies and the shift to smartphones for gaming purposes have a huge effect on Nintendo as their market share might be reduced. Lastly, the intense competition between Nintendo and its two competitors, Sony and Microsoft provides Nintendo with a challenge. One of Nintendo’s strengths is that it is an established company and consumers are aware of the brand. Nintendo often uses nostalgia to promote its products as the company has a very long history. However, this strategy might backfire as overdependence on their iconic characters like Super Mario might not be so effective due to its decreasing economic life-span. Nintendo’s target market is mainly millennials but their products are usually enjoyed by the whole family due to the company’s family-friendly policy. 2
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Lundy-Johnson, Michelle The company was founded by Fusajiro Yamauchi in 1889 and it officially went public in 1962 (Erbland 2014). Nintendo, originally known as “Nintendo Koppai”, is the oldest video- game company in the world which first started as a small business in Kyoto that sells Japanese flower cards named “Hanafuda” (Jones 2013). Before entering the gaming industry, Nintendo had expanded its business in several other industries, but none of these business ventures brought any success to the organisation. In 1985, Nintendo released its first video-game console, the
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