Nintendo Case Study Rev 1.docx - Introduction The video game console industry is characterized by constant change innovation and fierce

Nintendo Case Study Rev 1.docx - Introduction The video...

This preview shows page 1 - 3 out of 6 pages.

IntroductionThe video game console industry is characterized by constant change, innovation and fiercecompetition (Williams, 2002). One of its most iconic companies is Nintendo (Parr, 2012), acompany founded more than 120 years ago, in 1889. In its 125 year history Nintendo has gonefrom a company originally founded to manufacture and sell playing cards to a well-recognizedtechnological company, one of the leaders in the highly competitive video game consoleindustry (Fast Company, 2008). Although innovative and one of the most successful companiesin its industry, Nintendo’s fortunes have recently taken a turn for the worse. Faced with changingtrends in the industry (such as casual gamers turning to mobile gaming) and strong competitionfrom Sony and Microsoft, Nintendo’s sales and stock prices have been falling (Parr, 2012), andits top management is trying to come up with new strategies to halt the bad results (Schmidt,2014). Nintendo is one of three big players in the highly dynamic gaming industry. Nintendo enteredinto the game console market in 1981. Since then, it has gone to sell in excess of 639 millionconsoles. These include the Nintendo DS, Gameboy, Wii, GameCube, SNES, N64 and 3DS.However, in recent years, Sony and Microsoft have gained a competitive advantage overNintendo and new trends in the industry have caused setbacks for Nintendo, thus creating theneed for strategic realignment.Nintendo has a range of products linked to the video game entertainment industry. However, allits products in this market can be easily grouped into four distinct categories, namely: the homevideo game console; the handheld game hardware; and the software, both for the game consoleand the handheld hardware.SWOT Analysis on NintendoEvaluation of strength, weaknesses, opportunities and threats through the external and internalanalysis of Nintendo (SWOT), are carried out to identify issues from Nintendo’s weaknessesand threats and to propose operation management strategies by considering Nintendo’sstrengths and opportunities. The SWOT analysis is as follows:Strengths Strong brands (e.g. Pokémon, Mario) with dedicated followers Valuable brand heritageLicensing these brands and makings use of them in the form of merchandise
Background image
Family friendly set-up WeaknessesWeaker graphic capabilities in comparison to competitors Lost relevance for hard-core gamersOpportunitiesIncrease in demand for family friendly games Tapping into the new market for games on smartphones and tablets Tap into the market for home use of VR devices Threats Restrictions on certain games due to the effect of violence on gamers -
Background image
Image of page 3

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture