. These skills rely on the company’s ability to discover new markets, the “blue oceans”, thanks to which Nintendo can generate new and unexpected value propositions. The company’s focus on core competences is also going to help Nintendo to end this crisis in that they provide the basis for a long-term competitiveness and they allow the company to reconfigure itself, changing and adapting as the decades pass. It is now evident that Nintendo is about to change. The Kyoto based company is in fact going to be different in the near future, embracing new fields such as “health” and including them in their value proposition within the field of entertainment, with the aim to improve people’s overall quality of life. This move does seem to be the correct one in that it makes good use of 35 Financial expression signifying “putting an end to the loss of money”.
86 Nintendo’s distinctive ability to discover new markets. Nintendo’s strategic dilemma from the launch of the Wii U was originated by the previously illustrated strategic missteps, and it was enhanced by the fact that the company is on the verge of a deep transition that will change forever the nature of Nintendo. The advice that would be given to Nintendo after having analyzed this case consists in: first, improve its external positioning by effective tackling the current environmental weaknesses such as the internet connectivity; adopting a clear and coherent competitive strategy and scope to compete in the industry. It would be beneficial a differentiation strategy with a narrow scope to highly satisfy Nintendo’s enthusiasts and expert gamers (move away from casual gamers). Second, create a system architecture that would not scare away third party developers in order to increase the customer base. Third, leverage its key resources to set the basis of a long- term competitive advantage. Fourth, use (instead of fight) the smart devices to its advantage to promote Nintendo’s software and hardware.
87 9. Bibliography Master’s Literature o Books: “Strategy, Theory and Practice” (Clegg et al., 2011); “Knowledge as a Strategic Resource” (G. Probst et al., 1996); “Strategic Management of Technology and Innovation” (Burgelman et al., 2009); “Good Strategy Bad Strategy” (Rumelt, 2011); “Taking Brand Initiative” (Hatch & Schultz, 2008). o Papers: “Strategy and Organizational Evolution” (H. A. Simon, 1993); “The Eclectic Roots of Strategy Implementation Research” (C. H. Noble). “The Knowledge Creating Companies” (Nonaka, 2000). Further Literature o Papers: Porter, M.E. (1979) "How Competitive Forces Shape Strategy", Harvard Business Review, 1979; Porter, M.E. (1985) “Competitive Advantage”, Free press, NY, 1985; Porter, M.E (2008) “The Five Forces that Shape Strategy”, HBR, January 2008; C.K. Prahalad and G. Hamel “The Core Competence of the Corporation” (Harvard Business Review, May-June 1990); Svend Hollesen, 2013 “The Blue Ocean that Disappeared – the case of Nintendo Wii”.
- Winter '18
- Wii, Video game console, Nintendo, Nintendo Co.