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Case STUDY
รายงานนี้เปนสวนหนึ่งในวิชา MGMG 509 Strategic Management4
Chaovarin 5350030 Wijitra 5350136
Napapun 5350037 Satiya 5350138
Sorawit 5350042 Sirilak 5350174!
Presented by
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!
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!
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
External Analysis : PEST Analysis
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
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!
Internal Analysis : Value Chain
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
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
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!
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
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.
Strategic Recommendation :
corporate Strategy
GROWTH STRATEGY
Strategic Alliance Software game company
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
Strategic Recommendation :
implement Strategy
Enhancements	
•  Third party developers
•  Voice chat functions4
Promotions	
•  Family friendly advertisement
Ex Ads promoting co-op online play
"I like to create trends, not follow them."
Question & Answer!

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Case Stydy of Stratigic Management for Nintendo

  • 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!