to the same time period last year which clearly indicates its competitive advantage insustained financial increases.Not only are earnings reports showing a sustained competitive advantage, but also, for the second time in a row, they produced a console that broke sales records. ⬩According to Business Wire, within the first 10 months after the market launch in March 2017, close to 5 million Nintendo Switch units were sold in America, which steals the record from Nintendo’s Wii console. The Wii console system sold over 4 million units within a similar period.Portable consoles continuously prove to be SECTION 4: SWOT Analysis8
Group 6: Nintendo Company AnalysisCurrent Strengths:⬩Marketing and Pricing Strategy:Nintendo has a strong team of experienced marketing professionals who continuously come up with a variety of marketing strategies that successfully attract new customers. The company backs this up with a pricing strategy that evolves over time with the life of its products. When a product is first released, it is placed at a high price throughout its growth stage. The price is then lowered when it comes to the maturity stage, and finally, it gets cut when the product moves into the declining stage.⬩Distribution Channels: Nintendo distributes its products widely, not only through various retail gaming stores but also throughout different channels such as electronic stores, toy stores, and other retail markets. Nintendo products are also available in various online marketplaces to keep up with the increasingly popular online shopping, which helps the company maintain a strong stance in the current market.⬩Innovation and Collaboration: Nintendo has been in the market for a long time, gaining worldwide popularity due to its research and innovation that allows it to keep creating new products that satisfy customer needs. Strategic partnerships allow Nintendo to gain market shares and stay relevant. These partnerships give Nintendothe ability to collaborate with companies such as Disney to incorporate popular designs and characters into their evolving products to attract more consumers.⬩Employee Benefits:Nintendo treats its employee wells by providing benefits in career, health and insurance, which allow for greater retainment of company culture and vision.Specifically, for career benefits, the company provides career planning 9
Group 6: Nintendo Company Analysisand recognition programs. For health benefit, it provides counseling, dental plans, and health insurance. For financial benefit, it gives its employees bonus pay childcare discount, life insurance, and paid time off.Current Weaknesses:⬩Sales Limitations:The Wii console was one of Nintendo’s top-selling gaming products. However, it failed to evolve and grow in the both the gaming software and hardware markets, which resulted in the loss of customers who chose other alternatives.Since Nintendo mainly produces games which can be seen as the low margin business, it needs to push up level of sales volumes for its gaming products to overcome its competition from small and large players., ⬩
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- Fall '19
- Video game console, Nintendo, Nintendo Company, Nintendo Koppai