Recently Nintendo has continued to innovate with the release of gameson mobile platforms through the Apple App Store and the Android App Store. Games like Super Mario Run and Pokémon Go have demonstrated their 20
success. Nintendo has also released the highly successful Nintendo Switch. Building on the company’s global fan-base and world-wide access, it has announced plans to leverage its intellectual property in the development of Super Mario Bros. movie. Nintendo hopes to build on the profitability of its fanbase in the construction of a Super Nintendo World at Universal Studio Japan. This was done in collaboration with Universal Parks & Resorts, once again, highlighting Nintendo’s amazing ability to collaborate in strategic partnerships with other companies and capitalize on opportunities towards the future. Construction at the attraction is expected to be completed before the 2020 Tokyo Olympics.In another strategic partnership, Nintendo has announced its collaboration with the Chinese gaming company Tencent to launch a global version of the very successful Honor of Kings game for the Nintendo Switch. This points to Nintendo’s future prospect of having a greater presence in China. This collaboration and strategic partnership could prove to be extremely profitable for Nintendo.International StrategyNintendo has been dominating the video game industry for decades, with other leading competitors such as Sony and Microsoft also sweeping competitions, especially in the international market. In a generalized scope, Nintendo as an individual company has appeared to be “very” Japanese. Though this can be perceived to be a strength and that the company’s key successes stem from its core culture; this can in turn be detrimental to the company’s growth on an international scale (). Nintendo primarily focuses on catering to their Japanese audience, that being their domestic market. The birth of Nintendo began in the humble years of 1889, however it entered into the international space in the year of 1980 which is almost a century’s time of becoming part of international markets. In 1980, the company created, “a wholly owned subsidiary, Nintendo of America Inc. in New York” (Nintendo.co.uk). This would commence Nintendo’s entry mode into the international markets, starting from the western hemisphere. Nintendo started to expand their image worldwide due to their nationalistic pride. The wholly-owned subsidiary wouldentail Nintendo owning all the common stock. Nintendo’s entry into the international markets is under hierarchical governance, in which the 1980 event is also known as a foreign direct investment. This reflects the highest stage internationalization, where there is deemed to be the largest investment costs and highest risks. However, it also has the most potential for greater returns. Nintendo can face both advantages and disadvantages from this wholly owned subsidiary. In New York the capital they receive is $110,000 and have 100 percent control over the sales and marketing of
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- Spring '19
- Video game console, Nintendo