Blue ocean Red Ocean strategy

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how Nintendo applied the Blue Ocean Red Ocean strategy with their Wii product and it's impact on the their market share and profit

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Blue ocean Red Ocean strategy

  1. 1. Nintendo Wii Case Study 4.1 International MarketingBryan WittDavid Zaki
  2. 2. History and background•  A video game console is just a computer that is made only. To Play games.•  These systems started to gain popularity in the 1970s with consoles that played only Pong.•  Current console success started in 1985 with Nintendo’s super Smash Brothers.
  3. 3. History and background•  A video game console is just a computer that is made only. To Play games.•  These systems started to gain popularity in the 1970s with consoles that played only Pong.•  Current console success started in 1985 with Nintendo’s super Smash Brothers.
  4. 4. History and background•  A video game console is just a computer that is made only. To Play games.•  These systems started to gain popularity in the 1970s with consoles that played only Pong.•  Current console success started in 1985 with Nintendo’s super Smash Brothers.
  5. 5. MarketingThe strategy for marketing consoles isbased on: –  Better technologies/graphics Ex: HD, Blue Ray and 3D –  Better games Ex: FIFA, Halo and Mario
  6. 6. Production•  Production started in the US then moved to China and Japan.•  Development is expensive but the consoles cost little to produce.•  The longer a product is sold the more profitable each sale.
  7. 7. Competition•  As the market became more profitable:•  Computer companies began investing in the market.•  Sony created it’s famous PlayStation•  Microsoft introduced the Xbox and Xbox live.
  8. 8. Growth and Profit Strategies
  9. 9. Red Ocean Blue Ocean“Bloody competition “Why competeto take a larger share when you don’tin the market” have to ?”
  10. 10. Red Ocean§  Basis of competition is trying to get a bigger share in the same defined market.§  Boundaries are defined and accepted.§  Competitive rules of the game are well-known and predefined.§  example.
  11. 11. Blue Ocean§  All the industries not in existence today.§  You create the demand rather than fight over it.§  You define the rules for competition.§  You are the ONLY player in such a market.
  12. 12. A MORE EXCITING game console!!!
  13. 13. How Nintendo applied Blue Ocean Strategy§  Unusual Gender for the market-Females§  Unexpected age – Elders§  Different target group - Families§  Different way of playing - Motion§  It’s no longer about controllers§  They simply jumped in another ocean by changing the whole game console market
  14. 14. How Nintendo applied Blue Ocean Strategy§  Unusual Gender for the market-Females§  Unexpected age – Elders§  Different target group - Families§  Different way of playing - Motion§  It’s no longer about controllers§  They simply jumped in another ocean by changing the whole game console market
  15. 15. How Nintendo applied Blue Ocean Strategy§  Unusual Gender for the market-Females§  Unexpected age – Elders§  Different target group - Families§  Different way of playing - Motion§  It’s no longer about controllers§  They simply jumped in another ocean by changing the whole game console market
  16. 16. How Nintendo applied Blue Ocean Strategy§  Unusual Gender for the market-Females§  Unexpected age – Elders§  Different target group - Families§  Different way of playing - Motion§  It’s no longer about controllers§  They simply jumped in another ocean by changing the whole game console market
  17. 17. How Nintendo applied Blue Ocean Strategy§  Unusual Gender for the market-Females§  Unexpected age – Elders§  Different target group - Families§  Different way of playing - Motion§  It’s no longer about controllers§  They simply jumped in another ocean by changing the whole game console market
  18. 18. How Nintendo applied Blue Ocean Strategy§  Unusual Gender for the market-Females§  Unexpected age – Elders§  Different target group - Families§  Different way of playing - Motion§  It’s no longer about controllers§  They simply jumped into another ocean by changing the whole game console market
  19. 19. Factors of competition
  20. 20. Competitors’ Strategies•  Microsoft’s Xbox 360 - Target the ‘serious’ gamer: young males - Better graphics, live internet gaming•  Sony’s PlayStation 3 - Bigger but less focused target group  
  21. 21. Did Blue Ocean strategy work for Nintendo ?
  22. 22. The future•  The market is trending towards motion controls and special recognition.•  This was shown by the success for Nintendo’s Wii.•  However the market also favors more powerful systems.
  23. 23. Conclusion•  Sony’s PS3 has developed wand controls for motion recognition.•  Microsoft has also developed the Kinect for spatial recognition.•  This shows that a Blue Ocean never stays Blue. Competition often turns it into a Red Ocean and the cycle goes on.
  24. 24. New Blue OceansSony creates Blue Ray more data storage on a discSuccess is unsure at this point
  25. 25. New Blue OceansMicrosoft Kinect is spatial recognition helps MS gain leading market share
  26. 26. New Blue OceansNintendo unveils it’s next generation ofconsole, the Wii U A slightly different direction
  27. 27. Thank You
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