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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
  •