Bang 123 - This strategic analysis for Nintendos Wii uses...

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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 APPENDIX 1: Selected External Analyses Key Success Factors for Industry Competition understand the importance of innovation. Source additional suppliers to increase production. Temporarily suspend supply to some countries to meet North American demand. Outsource Wii production Hire more employees. Stage of Industry It is in growth stage. o evidenced by intense cost and price is increase o The supply is still shortage while the demand is still very high in 2008. General Environment Demography- Wii of Nintendo provide the games which were able to be played by people will all age Technology—rapid rise of online retailing Socialcuture- Wii was created for everybody, everyone can play. This led people playing tennis, golf, boxing etc. directly with game and phu hop with many people in around the world. APPENDIX 2: Five Forces of Competition External Analysis Threat of New Entrants: High Components standard, anyone can assemble Long history, many experiences, trust of people (the Fans), not anyone can easy to entry. Costly to build national-global brand name, but can be local Threat of Substitutes: VERY LOW in the present VERY HIGH in the future
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Wii created its own game which is totally different to others competitors like XBOX 360 of Microsoft and Play Station 3 of Sony. Moreover, Wii is new way to play game and it accord to many people with many ages. However, the Microsoft and Sony will provide the new products like Wii or even better than it with new way to play game. Competitive Rivalry: VERY HIGH Although Wii of Nintendo led the sale of units in two years, 2007 and 2008 and many be in 2009, PlayStation 3 of Sony and XBOX 360 still two big competitors of Wii. Evidents show that in 2 years, Wii was sold 40 million units and XBOX was sold 28 million units, while Playstation 3 was sold 9.2 million units in March 2008.
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