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Final Presentation

Final Presentation






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    Final Presentation Final Presentation Presentation Transcript

    • Presented by: Megan Beasley Matt McCulloch Kathryn Williams Hoyt Dwyer
    • Company Overview- Past
      • 1889- Japan (Playing Cards)
      • 1951- name change
      • 1974- Exporting
      • 1977- First home gaming system
      • 1981- Donkey Kong
    • Company Overview what we remember
      • 1985- NES
      • 1989- Gameboy
      • 1991- Super NES
      • 1996- N-64
      • 1998- Pokemon Mania
      • 2002- Gamecube
      • 2003- Nintendo DS
      • 2006- Wii (most innovative gaming console today)
    • Things to know….
      • Main Branch- Kyoto, Japan
      • America- Redmond, Washington
      • Japan, US, Europe, and Australia
      • Legal Environment-Anti-Trust Laws
      • Competitors- Sony, Microsoft
        • New entrants- weak
      • Threats- PC gaming
    • Immediate Challenges
      • Inbound and Outbound Logistics
      • Competition
      • Expanding their Market
      • Increased On-line features
      • Need to Diversify
    • Inbound and Outbound Logistics
      • The Nintendo Wii is sold out
        • The second Christmas in a row
        • Unpredicted sales and demand have created problems with production
        • Essentially, Nintendo has not made enough Wiis to meet the demand of customers
        • Spokesperson for Nintendo defined one problem being a bottleneck in the production facility
    • Competition
      • Nintendo Wii vs. Xbox 360 vs. Playstation
      • Clearly defined competitors, both with better graphics/processors
      • Those video cards came at a price
      Price Wii:$249 Xbox 360: $299 Arcade $349 Premium $459 Elite PS3: $399 40 GB $499 80 GB
    • Expanding The Market
      • Rule of 80/20
        • A basic assumption of video game sales
        • 80% Male 20% Female
      • E3 2007 Nintendo Press Conference
        • Rule of 67/33
          • Sales have shifted, with more female customers
      • Wii and DS sales are growing in previously untapped markets
      • This trend should continue to increase sales and broaden the consumer demographic
    • Increased On-Line Features
      • Xbox 360: Xbox Live
        • Software that allows Xbox 360 games to be played on-line with other people
      • Playstation 3: Home
        • Interactive 3D Environment
        • Also allows games to be played on-line
      • Wii: ?
        • Surf the web, check the news, see the weather
        • Only a handful of games can be played on-line
        • Only wireless internet access of the three
    • Need to diversify
      • Nintendo has focused on nothing but the gaming industry for almost 30 years
        • Console Design
        • Video Game Design
      • A need to diversify is important for any business
        • Helps reduce risks
        • Increases revenues
      • Baseball??
        • Nintendo owns the majority of The Seattle Mariners
        • Definitely unrelated diversification
        • Too unrelated
      • Related Diversification
        • Branching out into other cutting edge and innovative technologies outside of video game design
        • Using Nintendo’s vast R&D abilities and applying it to related fields
    • To Recap…
      • Inbound and Outbound Logistics
      • Competition
      • Expanding their Market
      • Increased On-line features
      • Need to Diversify
    • 2 Strategic Imperatives
      • Inbound and Outbound Logistics
        • Basically, the Wii has been old out since it’s launch last year
        • Reduces revenues from sales
        • Frustrates customers and drives to purchase other consoles and residual revenue from games and peripherals
        • Affects the image and reputation of Nintendo
      • Competition
        • Coupled with the stock outs, Microsoft and Sony have begun systematically dropping their prices
        • High competition among these businesses have made generating sales crucial to success
        • Nintendo is at the forefront of sales, these trends must continue
    • Recommendations
      • Inbound and Outbound Logistics
        • Main source of problems:
          • Poor forecasting of demand
          • Problems with production
            • Bottlenecks
        • Improved Forecasting
          • Initial projections of demand for products are crucial for determining levels of productions
          • Creating a better system for forecasting will help Nintendo stay on top of production to decrease stock outs
        • Operations Management (TOC, Six Sigma, Lean Production)
          • Spokesperson for Nintendo commented on a bottleneck at the production facility
          • Implementing Operation Management tactics to identify the bottleneck and to then work around this constraint will help with efficiency of current production
            • Reduce inventory costs
          • Focusing on this constraint and how to increase its’ production will help increase the overall level of production at the facility
    • Recommendations
      • Competition
        • Decrease Stock Outs
          • Reduces consumers buying another console
        • Increase On-Line Deliverables
          • More games with on-line play
          • Important factor to today’s gamers
        • Increase Target Market
          • Currently a strategy at Nintendo
          • Creating a console intended for everyone
          • Breaking into new markets has amazing potential for increased revenues