NINTENDO: REVIVING ACOMPANY,TRANSFORMING A MARKETözge duman070060023ozan türkarslan070070007
historyNintendo Was founded in 1889 , began as a playing cardsmanufacturar Was one of the pioneers of video game consoles inthe early 1980s Contiuned as the market leader with its SuperNintendo Sony introduced its Playstation and Playstation 2 andMicrosoft introduced the Xbox in the mid- 1990s
history Sold 20 million GameCubes while Sony PS2 sold120 million Sony‟s PS3 and Microsoft Xbox 360 was soadvanced as looking at NintendoAfter a couple of years Nintendo Striked back with super Mario Bros. Its stock price tripled Its market capitalization exceeded that of SonyCorporation during 2007 Became the second largest corporation in Japonafter that Toyota Motor Company
Swot analysesstrenghts Enhancing virtual skills Revolutionary motion-sensing wirelesstechnology More inviting controllers Basic software Cost advantage than other firms A wireless internet connectionadvantage Nostalgic advantage New applications
Swot analysesweaknesses Easy games (Maybe boring for hard-cores) Lacking of state-art clips and high-definition lasers Strawny graphic features Ignoring hard- core gamers Basic Software
Swot analysesOPPORTUNITIES Only three big companies in the game consolesector Entering new markets First successful company in the industrythreats High competitive market More sophisticated hardwares Shorter life cycle More advanced technology in the industry
MARKETING MIX( 4P STRATEGIES)PRODUCTSGame Consoles: NES (Nintendo Entertainment System) SNES (Super Nintendo Entertainment System) Nintendo 64 Nintendo DS Gamecube Wii Gameboy Gameboy Color Gameboy Advance
MARKETING MIX( 4P STRATEGIES)Place Produced in Japon Customers can download the games throughWii Shop Channel Game publishers such as Electronic Arts Inc.have put more resources for the Wii Independent shops are getting into action asNintendo‟s download channel
MARKETING MIX( 4P STRATEGIES)PRice Prices are very affordable to its rivals Sony most populer PS3 model was at the topwith $599 Nintendo became low-price leader with $250Promotion: Emphasized the family- friendly games Offers free games in its system High-speed internet that allows to playcertain online games against friends and
Corporate level strategy Mission Statement: Creating fun of playing for all agesand every member of family by breaking gamingboundries Business Objectives: Improving the profit and sales Enforcing Customer Relationship Increasing efficiency Marketing Objectives: Attracting different customers Better targeting and positioning Designing its products extremely virtual
Business level strategy• Because of the company is a single- businesscompany , business portfolio has one business.Current- Business portfolio: The video game industry has grown tremendously Games are more complex and graphically intense Nintendo‟s products had low technologic features tothe rivals.SBU: Strong value of innovation New market for families Improving “distructive technology” Cost reduction by eliminating features
Business level strategyFuture Portfolio: Nintendo at the “Stars” stage in Boston-Consulting Matrix It has been “diversification” with new marketsand new products as growth strategy It has offered low-cost productsand a line of differentiated products
QUESTION 1Was nintendo just lucky, or does the Wii’ssuccess have strategic merit?It was not only about luck, it contains strategicmerit subtantially because Nintendo createsinnovative new system that takes advantage ofnew technologies and targets consumers of allages with Wii applications.
QUESTION 2Has Nintendo put the “fad” question torest? State a case as to why the Wii is or isnot here to stay?Because of fast growing it maybe seems like „fad‟but it is not. We realize that Wii has met aimportant part in virtual games as developingmotion-sense technology (Wii-mote vs.) andbreaking the boundaries of traditional gameconsoles with new applications (Wii ShopChannel, Wii Fit vs.). Wii also promising more funfor every age. Therefore, Wii has attracted non-traditional gamers.
QUESTION 3In which stage of the product life cycleis the Wii? Based on that stage, isNintendo employing good marketig mixstrategies?• Rapidly rising sales (24 milion sales in first 18months)• Rising profits ( Revenues and profits were up by73 percent and 67 percent respectively)• Middle majority customers (at adoptercategorization)shows that Wii is at „Maturity‟stage.
QUESTION 3In which stage of the product life cycleis the Wii? Based on that stage, isNintendo employing good marketig mixstrategies?- Prices beating rivals as price strategy- Diversifing its models as product strategy aresuccessfully employed- Appropriate promotion and distribituonstrategies must be developed.
QUESTION 4Develop a strategy for the Wii’s nextproduct life cycle phase.The company should continue to stay at maturitystage. Because top profits and peak sales areoccured at this stage. It should build moreintensive distrubition channels.
QUESTION 4Develop a strategy for the Wii’s nextproduct life cycle phase.The products should be featured for attractingnew costomers.The promotion workings are not sufficient. Itshould focus on advertising as stressing branddifferences and benefits and sales promotion asincreasing to encourage brand switching.
QUESTION 5Discuss the potential threats to NiNteNdo’sfuture success. What will help Nintendoavoid a premature decline for the Wii?Potential threats are that there is a high- competitive market, thegames are being more sophisticated and life-cycles of theproducts are shortening.Nintendo was succesfull to produce extra-ordinary video gamesand that made it top company but there is no guaranty to keepthis reign. Although Nintendo has a huge game number, theseare easy-play games and may cause a aridity. So Nintendo hasto add to its classic game styles as developing more seriousgames.Due to rapidly developing technology, the product‟s life cycleshave become more shorten.