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Nintendo Wii
           Case Study 4.1
      International Marketing




Bryan Witt
David Zaki
History and background
•  A video game console is just a
   computer that is made only.
           To Play games.
•  These systems started to gain
   popularity in the 1970s with consoles
   that played only Pong.
•  Current console success started in
   1985 with Nintendo’s super Smash
   Brothers.
History and background
•  A video game console is just a
   computer that is made only.
           To Play games.
•  These systems started to gain
   popularity in the 1970s with consoles
   that played only Pong.
•  Current console success started in
   1985 with Nintendo’s super Smash
   Brothers.
History and background
•  A video game console is just a
   computer that is made only.
           To Play games.
•  These systems started to gain
   popularity in the 1970s with consoles
   that played only Pong.
•  Current console success started in
   1985 with Nintendo’s super Smash
   Brothers.
Marketing
The strategy for marketing consoles is
based on:
  –  Better technologies/graphics
       Ex: HD, Blue Ray and 3D
  –  Better games
       Ex: FIFA, Halo and Mario
Production
•  Production started in the US then
   moved to China and Japan.

•  Development is expensive but the
   consoles cost little to produce.

•  The longer a product is sold the more
   profitable each sale.
Competition
•  As the market became more
   profitable:
•  Computer companies began investing
   in the market.
•  Sony created it’s famous PlayStation
•  Microsoft introduced the Xbox and
   Xbox live.
Growth and Profit Strategies
Red Ocean             Blue Ocean
“Bloody competition       “Why compete
to take a larger share    when you don’t
in the market”            have to ?”
Red Ocean

§  Basis of competition is trying to get a
    bigger share in the same defined
    market.
§  Boundaries are defined and accepted.
§  Competitive rules of the game are
    well-known and predefined.
§               example.
Blue Ocean



§  All the industries not in existence
    today.
§  You create the demand rather than
    fight over it.
§  You define the rules for competition.
§  You are the ONLY player in such a
    market.
A MORE EXCITING game console!!!
How Nintendo applied Blue
       Ocean Strategy

§  Unusual Gender for the market-Females
§  Unexpected age – Elders
§  Different target group - Families
§  Different way of playing - Motion
§  It’s no longer about controllers
§  They simply jumped in another ocean
    by changing the whole game console
    market
How Nintendo applied Blue
       Ocean Strategy

§  Unusual Gender for the market-Females
§  Unexpected age – Elders
§  Different target group - Families
§  Different way of playing - Motion
§  It’s no longer about controllers
§  They simply jumped in another ocean
    by changing the whole game console
    market
How Nintendo applied Blue
       Ocean Strategy

§  Unusual Gender for the market-Females
§  Unexpected age – Elders
§  Different target group - Families
§  Different way of playing - Motion
§  It’s no longer about controllers
§  They simply jumped in another ocean
    by changing the whole game console
    market
How Nintendo applied Blue
       Ocean Strategy

§  Unusual Gender for the market-Females
§  Unexpected age – Elders
§  Different target group - Families
§  Different way of playing - Motion
§  It’s no longer about controllers
§  They simply jumped in another ocean
    by changing the whole game console
    market
How Nintendo applied Blue
       Ocean Strategy

§  Unusual Gender for the market-Females
§  Unexpected age – Elders
§  Different target group - Families
§  Different way of playing - Motion
§  It’s no longer about controllers
§  They simply jumped in another ocean
    by changing the whole game console
    market
How Nintendo applied Blue
       Ocean Strategy

§  Unusual Gender for the market-Females
§  Unexpected age – Elders
§  Different target group - Families
§  Different way of playing - Motion
§  It’s no longer about controllers
§  They simply jumped into another ocean
    by changing the whole game console
    market
Factors of competition
Competitors’ Strategies
•  Microsoft’s Xbox 360
  - Target the ‘serious’ gamer: young males
  - Better graphics, live internet gaming


•  Sony’s PlayStation 3
  - Bigger but less focused target group
  	
  
Did Blue Ocean strategy work
        for Nintendo ?
The future
•  The market is trending towards
   motion controls and special
   recognition.
•  This was shown by the success for
   Nintendo’s Wii.
•  However the market also favors more
   powerful systems.
Conclusion
•  Sony’s PS3 has developed wand
   controls for motion recognition.
•  Microsoft has also developed the
   Kinect for spatial recognition.
•  This shows that a Blue Ocean never
   stays Blue. Competition often turns it
   into a Red Ocean and the cycle goes
   on.
New Blue Oceans
Sony creates Blue Ray
    more data storage on a disc

Success is unsure at this point
New Blue Oceans
Microsoft Kinect is spatial recognition
    helps MS gain leading market share
New Blue Oceans
Nintendo unveils it’s next generation of
console, the Wii U
    A slightly different direction
Thank You

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Blue ocean Red Ocean strategy

  • 1. Nintendo Wii Case Study 4.1 International Marketing Bryan Witt David Zaki
  • 2. History and background •  A video game console is just a computer that is made only. To Play games. •  These systems started to gain popularity in the 1970s with consoles that played only Pong. •  Current console success started in 1985 with Nintendo’s super Smash Brothers.
  • 3. History and background •  A video game console is just a computer that is made only. To Play games. •  These systems started to gain popularity in the 1970s with consoles that played only Pong. •  Current console success started in 1985 with Nintendo’s super Smash Brothers.
  • 4. History and background •  A video game console is just a computer that is made only. To Play games. •  These systems started to gain popularity in the 1970s with consoles that played only Pong. •  Current console success started in 1985 with Nintendo’s super Smash Brothers.
  • 5. Marketing The strategy for marketing consoles is based on: –  Better technologies/graphics Ex: HD, Blue Ray and 3D –  Better games Ex: FIFA, Halo and Mario
  • 6. Production •  Production started in the US then moved to China and Japan. •  Development is expensive but the consoles cost little to produce. •  The longer a product is sold the more profitable each sale.
  • 7. Competition •  As the market became more profitable: •  Computer companies began investing in the market. •  Sony created it’s famous PlayStation •  Microsoft introduced the Xbox and Xbox live.
  • 8. Growth and Profit Strategies
  • 9. Red Ocean Blue Ocean “Bloody competition “Why compete to take a larger share when you don’t in the market” have to ?”
  • 10. Red Ocean §  Basis of competition is trying to get a bigger share in the same defined market. §  Boundaries are defined and accepted. §  Competitive rules of the game are well-known and predefined. §  example.
  • 11. Blue Ocean §  All the industries not in existence today. §  You create the demand rather than fight over it. §  You define the rules for competition. §  You are the ONLY player in such a market.
  • 12. A MORE EXCITING game console!!!
  • 13.
  • 14. How Nintendo applied Blue Ocean Strategy §  Unusual Gender for the market-Females §  Unexpected age – Elders §  Different target group - Families §  Different way of playing - Motion §  It’s no longer about controllers §  They simply jumped in another ocean by changing the whole game console market
  • 15. How Nintendo applied Blue Ocean Strategy §  Unusual Gender for the market-Females §  Unexpected age – Elders §  Different target group - Families §  Different way of playing - Motion §  It’s no longer about controllers §  They simply jumped in another ocean by changing the whole game console market
  • 16. How Nintendo applied Blue Ocean Strategy §  Unusual Gender for the market-Females §  Unexpected age – Elders §  Different target group - Families §  Different way of playing - Motion §  It’s no longer about controllers §  They simply jumped in another ocean by changing the whole game console market
  • 17. How Nintendo applied Blue Ocean Strategy §  Unusual Gender for the market-Females §  Unexpected age – Elders §  Different target group - Families §  Different way of playing - Motion §  It’s no longer about controllers §  They simply jumped in another ocean by changing the whole game console market
  • 18. How Nintendo applied Blue Ocean Strategy §  Unusual Gender for the market-Females §  Unexpected age – Elders §  Different target group - Families §  Different way of playing - Motion §  It’s no longer about controllers §  They simply jumped in another ocean by changing the whole game console market
  • 19. How Nintendo applied Blue Ocean Strategy §  Unusual Gender for the market-Females §  Unexpected age – Elders §  Different target group - Families §  Different way of playing - Motion §  It’s no longer about controllers §  They simply jumped into another ocean by changing the whole game console market
  • 21. Competitors’ Strategies •  Microsoft’s Xbox 360 - Target the ‘serious’ gamer: young males - Better graphics, live internet gaming •  Sony’s PlayStation 3 - Bigger but less focused target group  
  • 22. Did Blue Ocean strategy work for Nintendo ?
  • 23. The future •  The market is trending towards motion controls and special recognition. •  This was shown by the success for Nintendo’s Wii. •  However the market also favors more powerful systems.
  • 24. Conclusion •  Sony’s PS3 has developed wand controls for motion recognition. •  Microsoft has also developed the Kinect for spatial recognition. •  This shows that a Blue Ocean never stays Blue. Competition often turns it into a Red Ocean and the cycle goes on.
  • 25. New Blue Oceans Sony creates Blue Ray more data storage on a disc Success is unsure at this point
  • 26. New Blue Oceans Microsoft Kinect is spatial recognition helps MS gain leading market share
  • 27. New Blue Oceans Nintendo unveils it’s next generation of console, the Wii U A slightly different direction