Business Analysis on Nintendo

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1977- Introduced a home video game system in Japan
1978- Sold coin-operated games
1981- Donkey Kong developed (major success)
1985- Super Mario Brothers developed
Initiated a licensing program with six retail companies
Started selling Nintendo systems in New York
1988- Sales reached 7 million; licensed to 31 American software companies 1990- Nintendo had 90% of market share worldwide
1991- Increased to 100 licensees; rescinded its exclusivity requirements 1992- Nintendo had 40% market share (Sega with 60%)
Left alliance they had with Sony
1996- Launched Nintendo 64 in Japan and US (had 3D capabilities)
Nintendo had 41% market share (Playstation with 49%)
2001- Gamecube introduced (CD’s and wireless controllers)
2002- Cut prices along with competitiors
2004- Launched BrainAge
2006- Launched Wii

Strong position in all major markets
Lower priced/cheaper games
Innovative design/Interactive games
Recognizable games and variety of games
Market strategy

Processing Power (compared to Xbox or Sony)
Graphics (compared to Xbox or Sony)
Not adaptable to all games
Higher investment due to numerous accessories

Moving into more markets (i.e. schools)
Eliminating competition
Updating technology/Constant innovations
Moving into a more markets
Potential New Entrants (competitors creating similar systems) •Substitute Products: Board games, TV, Internet, iPods, Books, Sports, PC games •PS3 combined gaming system with BlueRay Player

Analyze findings:

After thorough comparison of Nintendo’s strengths, weaknesses, opportunities, and threats, we believe that they currently hold a strong competitive position. Their differentiation strategy sets them apart from competitors, and continuing to grow and develop will keep them ahead of any potential substitutes.

Business Level Strategy:

Who are the customers? → Individual consumers of...
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