Swot nintendo

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Swot nintendo

  1. 1. Lionel BenoilidThursday 6th December 2012
  2. 2. History Market SWOT Recommendations Conclusion  Founded as a playing card company in late 1889  By Hiroshi Yamauchi  Based in Kyoto, Japan  Means “leave luck to heaven”  Produced and marketed playing cards  Put Disney characters in playing cards  Became leader
  3. 3. History Market SWOT Recommendations Conclusion  From 1963 to 68, Nintendo set up › Taxi company › Food company › Love hotel chain › TV network › Toy market  Failed
  4. 4. History Market SWOT Recommendations Conclusion  First venture in the video game industry  Produced it’s own hardware in 77: the color TV Game  81: Donkey kong  Huge boost in profits  85: Nintendo Entertainment System (NES) 61 Million units, retired in 95 Home consoles: Super NES, N64, GameCube, Wii Portable consoles: Gameboy(s), Nintendo DS.
  5. 5. History Market SWOT Recommendations Conclusion  Video game console industry › $10 Billion per year  Nintendo › First console: 1985  First mover  Current market › Nintendo (Wii: 1st), Microsoft (Xbox 360: 2nd), Sony (PS3 : 3rd).
  6. 6. History Market SWOT Recommendations Conclusion Technological Segment Sociological Segment
  7. 7. History Market SWOT Recommendations Conclusion Entry barriers Suppliers Competition Buyers Substitutes
  8. 8. History Market SWOT Recommendations Conclusion Introduction Growth Maturity Decline Current Console Market X
  9. 9. History Market SWOT Recommendations Conclusion Introduction Growth Maturity Decline (Innovators/ (Early market (Full (Introduction of Early saturation) saturation, R&D new, phase out of Adopters) begins on next old) generation) 5-year Period (Average)
  10. 10. History Market SWOT Recommendations Conclusion Introduction Growth Maturity Decline Wii Game Cube N64 SNES NES ‘05-’12 ’85-’89 ’89-’95 ’95-’98 ’98-’05
  11. 11. History Market SWOT Recommendations Conclusion  Players: Nintendo (NES), Sega (MS)  Nintendo market share: 90%  Large success attributed to the 85 - 89 popularity of the Super Mario Bros game.
  12. 12. History Market SWOT Recommendations Conclusion  Sega creates the Megadrive console to steal Nintendo market share. The Megadrive is superior in all areas: 89 - 95  Better graphics  Longer/complex games  More buttons  Nintendo market share: 60%
  13. 13. History Market SWOT Recommendations Conclusion  Players: Nintendo (N64), Sony (PS), Sega (Saturn)  Nintendo responded too lately › Nintendo’s slogan became “Is it worth the wait? Only if you want the best!” 95 - 98  Pirate  Nintendo market share: 23%
  14. 14. History Market SWOT Recommendations Conclusion  Players: Sega (DC), Sony (PS2), Nintendo (GC), Microsoft (Xbox)  Nintendo limited its target audience. 98 - 05  Nintendo market share: 14%
  15. 15. History Market SWOT Recommendations Conclusion  Players: Nintendo (WII), Sony (PS3), Microsoft (Xbox 360) Wii  First mover: Microsoft  Nintendo market share: 48% 05 - 12
  16. 16. History Market SWOT Recommendations Conclusion 90% 60% 48% 23% 14% 1989 1995 1998 2006 2012
  17. 17. History Market SWOT Recommendations Conclusion Simple and cheap Focuses on what matters in having fun From pushing buttons to moving body Something more than game
  18. 18. History Market SWOT Recommendations Conclusion  Currently has the lion’s share of the market in consoles › 48% of the market › Software market  Owns popular properties › Super Mario Bros. and Donkey kong  History of innovative gaming technology › First in the market › Created a new way of gaming Strengths Weaknesses Opportunities Threats
  19. 19. History Market SWOT Recommendations Conclusion  Built a lot of brand equity over the past 30 years › Sold more than 300 Million consoles › Sold 2.2 billion games  Captures a broader public  Gaming focus Strengths Weaknesses Opportunities Threats
  20. 20. History Market SWOT Recommendations Conclusion  Popularity of the Wii seems to have peaked › Since 2011 sales have plummeted (earlier than competition)  Doesn’t appeal to serious gamers › Considered as a toy › Not known for sophisticated graphics › Not technologically good enough compared to competition Strengths Weaknesses Opportunities Threats
  21. 21. History Market SWOT Recommendations Conclusion  The hierarchical nature of the company may cause it to not respond quickly enough to the threats › Too hierarchical  Limited options in online gaming › Sony and Microsoft have created an online hub Strengths Weaknesses Opportunities Threats
  22. 22. History Market SWOT Recommendations Conclusion  Wii + Internet  Reduce business risk › Use global presence and geographical diversification › Reduce dependency on suppliers  Balance hardware and software focus  Appeal to serious gamers › Diversify range › Sophisticated graphics
  23. 23. History Market SWOT Recommendations Conclusion  Expend demographics  A large number of current Wii owners › backwards compatibility of the new game will promote adoption by these users Strengths Weaknesses Opportunities Threats
  24. 24. History Market SWOT Recommendations Conclusion  Get the infrastructure better › Home networking › Entertainment delivery technologies  Increase video game technology › Brain wave technology › holography Strengths Weaknesses Opportunities Threats
  25. 25. History Market SWOT Recommendations Conclusion  Online gaming continues to expand and Nintendo isn’t part of it  Competition: Some projects are going to cut into wii’s market share. › Social networking games › Project Natal (Microsoft): Same technology / Same concept Strengths Weaknesses Opportunities Threats
  26. 26. History Market SWOT Recommendations Conclusion  Substitutes: › Popular devices like the iPad are migrating gaming away from consoles and computers  The console market is approaching saturation › 60 million units of the current generation sold (Xbox 360, PS3, Wii) Strengths Weaknesses Opportunities Threats
  27. 27. History Market SWOT Recommendations Conclusion  Cater to a wider public  Focus on Online gaming segment  Incorporate Social Networking games  Target ‘mobile’ gaming segment  Integrate Wii with basic activities (Extend offering like Wii Fit)  Manage shorter product lifecycle efficiency
  28. 28. History Market SWOT Recommendations Conclusion  Spread consoles › Even if it’s for a low price › Will earn on games  Low communication › Strength of brand › Half the price of Microsoft  No subcontractor › Trust it’s own creativity
  29. 29. History Market SWOT Recommendations Conclusion - Unique and innovative products - Limited options in online gaming - Brand reputation and recognition - Doesn’t appeal to serious gamers - Expend demographics - Substitutes - Increase video game technology - Competition
  30. 30. History Market SWOT Recommendations Conclusion  Cater to a wider public  Focus on Online gaming segment  Develop partnerships to introduce the next generation

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