2008 - 1 Strategic Analysis for Nintendo Wii Bang Nguyen...

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1 Strategic Analysis for Nintendo Wii Bang Nguyen Strategic Management Prof. Kopka July 11, 2011
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3 Date: July 11, 2011 To: Prof. Kopka From: Bang Nguyen Subj: Strategic Analysis for Nintendo Wii ********************************************* This strategic analysis for Nintendo’s Wii uses established tools and techniques to first present a hard-hitting environmental analysis of Nitendo’s external and internal conditions. The strategic issues facing Nintendo are then identified, followed by evaluation of potential alternative solutions and recommendations for future strategies. EXTERNAL AND INTERNAL ENVIRONMENTAL ANALYSIS External Analysis There are two conditions that are most significant in Nintendo’s external environment: 1. Temporarily increasing price and temporarily suspend supply to some countries to meet North American demand to resolve the supply shortage problem in short term. 2. Need to find and source additional suppliers to increase production to resolve the supply shortage problem in long term. Nintendo’s Wii have a huge demographics. According to the Nitendo, one of the key diffrerences between the wii and the competitors’s systems was the broad audience that Wii target. Very different from two main competitors, Play Station3 of Sony and Xbox 360 of Microsoft, only provide the games forcus on young men, Wii of Nintendo provide the games
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4 which were able to be played by people will all age. Moreover, the simple controller of Wii phu hop with many people in around the world. In the Key success factors, it show the main problem of Nintendo company is lack the supplier to made the product. It creates a huge shortage of supply Wii. New innovation of Nintendo, Wii focus on many people with many level of ages, easier to play, friendly with everybody and environment, having good brand names, Wii really help Nintendo led the game machine market. Because of Shortage of supply, it makes the buyer power decrease very much. With the customers who want to have a Wii but they cannot buy it from the store so they have to buy it in the eBay and have to pay double or triple the retail price. Wii also create the way to play game, it like a explorer so threat of substitutes is low (Five forces Analysis). . Moreover, the price of Wii is lower than other like Xbox 360 of Microsoft or PlayStation 3 of Sony. Wii charge the customer $249 per unit, Xbox charge multiple price, $399 for Elite, $299 for premium System, $199 for Core System and PlayStation cost $399 for 80GB, $499 for 160GB. Price of Wii is less than a half. Internal Analysis The innovation is really important with a company like Nintendo. In the past, the game products of Nintendo were less innovation and it was reason why Nintendo did not have strong position in the game industry. Developing and bringing to market the new products like Wii helped Nintendo increase the revenue, profit and ROI and ROE (See APPENDIX…). In the financial analysis show that the return of investment ratio (ROI) has increased from 2004 to
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This note was uploaded on 07/18/2011 for the course BUSX 460 taught by Professor Case during the Spring '08 term at Towson.

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2008 - 1 Strategic Analysis for Nintendo Wii Bang Nguyen...

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