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Case Stydy of Stratigic Management for Nintendo
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  • 1. Case STUDY รายงานนี้เปนสวนหนึ่งในวิชา MGMG 509 Strategic Management4 Chaovarin 5350030 Wijitra 5350136 Napapun 5350037 Satiya 5350138 Sorawit 5350042 Sirilak 5350174! Presented by
  • 2. Introduction : Case Summary เปนบริษัทสัญชาติญี่ปุน กอตั้งเมื่อ พ.ศ. 2432 (ค.ศ. 1889) เริ่มแรกทำธุรกิจเกี่ยวกับการด เกมและของเลนรวมถึงธุรกิจอื่น เชน โรงแรมและแท็กซี่ใน พ.ศ. 2526 (ค.ศ. 1983) นิน เทนโดไดผันตัวเองมาเปนบริษัทวิดีโอเกม ซึ่งเปนบริษัทเกี่ยวกับวิดีโอเกมที่มีอายุ ยาวนานที่สุดและทรงอิทธิพลที่สุดจนถึงปจจุบัน   Mr.Saturo Iwata! Presedent & CEO!
  • 3. Introduction : Industry summary Year Market Share Size - Global market - Opportunities for a large number of competitors Growth! - Video Game Industry growth 10.6%! 2006 2007 2008 2009 2010 4,736.0   8,988.8   15,553.5   18,761.4   15,423.3   US  $  Millions Revenue!
  • 4. Introduction : Past strategy and Challenge 1983 1990 1994 1996 2001 2006 Past Strategy Challenge! •  Up sale revenue •  Enjoyable •  Cost reduction •  Focus on “non-gamer”4
  • 5. External Analysis : PEST Analysis
  • 6. External Analysis : Five Forces Model Threat of substitute products Rivalry Among Established Firms Threat of new entrances Bargaining power of suppliers Bargaining power of customers (+) อำนาจตอรองของ Supplier สูง (-) Personal computer และ Website (+) แผนเกมสถูกออกแบบมาใหเลนกับเครื่อง เกมสคอนโซลนั้นๆเทานั้น (+) คูแขงเขาไดยาก เนื่องจาก ตองการการวิจัยและพัฒนารวม ถึงตองมีนวัตกรรมใหมๆ (+) ตลาดมีอัตราการเติบโต 10.6%! (-) ตลาดมีการแขงขันสูงและลอกเลียนแบบ
  • 7. External Analysis : Competitor Analysis Focusing on performance systems to Hardcore gamer and extreme graphic Focusing on fun and new experience rely on its unique controller aggressively courting non-traditional gaming groups outside this traditional profile in an attempt to increase the size of the console market!
  • 8. Internal Analysis : Value Chain
  • 9. Internal Analysis : Resource, Capabilities, Core competency • Strong cash flow • Factory Tangible • R &D team • Marketing team • Supplier • Manufacturing process • Company management by Iwata Intangible resource •  Ability to predict future of video gaming •  Give it capabilities in innovative technology and game concepts •  Effective brand •  Reach economies of scale and produce cost lower than competitor Capabilities •  Create casual game •  Low cost in production •  Strong brand •  Nintendo’s console and in-house game development department CORE Competency
  • 10. Strategic Analysis : SWOT Analysis Strength • Leader in sales thanks to the penetration of "blue oceans" •  Industry Expertise •  Customer Loyalty •  Traditional gameplay Differentiation •  Best selling console in history (DS) •  Brand Image •  Low price competition over •  New applications other than games •  Creating new ways to play (family, 3rd age) • Strongly established brand • Robust revenue growth • Strong cash flow from operation • High employee efficiency • Debt free status Weakness • Smaller company sector •  Technological innovation Unit •  In the medium / long term missing star products / unknown in the portfolio •  Lack diversification, focusing on only 2 products •  Core Business (target markets) falling • Inventory shortage • Limited option of online gaming • Narrow presence in online community Opportunities • Leader to develop new products •  Taking advantage of technological innovations (3D) that already applies in some products •  It has no threat of substitute products (only direct competition) •  Ability to diversify into alternative products •  New Accessories • Rising demand for company’s product and related software • Growing US game software market • Increasing demand for game online Threats •  Ability of the competition (economic, technological, ...) •  Mature and saturated •  Obligation to innovate the medium term •  Games developed for these little interactive media •  Improved products from competition • Loss of video game regular customer • Short product lifecycle • Slowdown of the Japanese, The US and European economies
  • 11. Strategic Analysis : GE Matrix Focuses on Creating consoles and games geared toward nongamers and families. - Introduce a more varied selection of video game genres to its software collection! - continue developing innovative game technology! ! General Electric Model!
  • 12. Strategic Analysis : Strategic group Analysis DistributionChannels Overall Cost to Players of Video Games Low (Coin-operated equipment) Medium (Video game Console cost $100-$300) High (Use PC) Many Some One Sony, Sega, Nintendo, Microsoft, etc. Arcade operators Publishers of games on CD-ROMs Online game provider including MSN Gaming Zone, Pogo.com, America Online, HEAT, Engage, Oceanline, TEN, Zynga
  • 13. Stratigic Analysis : Generic Business Strategy Analysis Nintendo had Cost leadership. US$299.99 US$499.99 US$249.99 Nintendo drove differentiation and market segmentation together. targeted to non-gamers. As a result, many people bought the Wii and played it who would have never played it otherwise, including grandmas, young children, and a lot more women.
  • 14. Strategic Recommendation : corporate Strategy GROWTH STRATEGY Strategic Alliance Software game company
  • 15. Strategic Recommendation : Business Strategy Differentiation Strategy! Casual Market Unique Product •  Focus on family friendly entertainment •  Redefine definition of gaming •  Emphasize simplicity and ease of use4 •  Emphasis on corporate culture •  Strength in finance & partnerships •  Innovative technologies! Online Gaming - Enhanced Wi-Fi Capabilities & Promote Enhancements
  • 16. Strategic Recommendation : implement Strategy Enhancements •  Third party developers •  Voice chat functions4 Promotions •  Family friendly advertisement Ex Ads promoting co-op online play
  • 17. "I like to create trends, not follow them." Question & Answer!