Strategy Used Nintendo has remained competitive in the market by offering the most inexpensive eighth generation gaming consoles. While the Playstation and Xbox both sale for over $300, the Wii sells for $200. This meets porter’s first generic strategy to overcome the five forces of overall cost leadership. Nintendo was also the first to enter the motion sensing game strategy. They were the leader in unit sales by differentiating their product, making it unique and valuable. Nintendo has also displayed focus on their product by continuously offering a family oriented gaming system that can be played by anyone. Ensuring Coherence in Strategic Direction 4
Carlos Mera Nintendo has created and sustained a competitive advantage by staying true to the company’s mission statement which states “At Nintendo we are proud to be working for the leading company in our industry. We are strongly committed to producing and marketing the best products and support services available. We believe it is essential not only to provide products of the highest quality, but to treat every customer with attention, consideration and respect. By listening closely to our customers, we constantly improve our products and services.[Nin171]” The company used the Ensuring Coherence in Strategic Direction strategy to motivate the company to remain in competition with top sellers. In the mission statement Nintendo states “by listening closely to our customers, we can constantly improve our products and services.” They have accomplished this with the release of the Nintendo Switch. The Switch is “Nintendo’s fastest selling console ever in many major markets.[Nin17]” Leaders that transcend the popularity of their business or market are capable taking advantage of this strategy. A company must have a strong leader that enforces and believe in their mission statement. Resource View of Firm The resource-based view of the firm suggest that internally and externally, the company is growing and not threatened. Internally, the company has released unique and innovative games like Super Mario Bros, Pokémon, and Zelda. These legendary games have created a rapport amongst Nintendo’s loyal and original buyers. To satisfy these buyers Nintendo pleased their fans with the Nintendo Switch which offered many of their original games. Externally, the Wii was the leader of its generation with the introduction of interactive motion sensing. Even though 5
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- Spring '13
- Wii, Video game console, PlayStation 3, Xbox 360, Nintendo