Preview

Business Analysis on Nintendo

Good Essays
Open Document
Open Document
367 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Business Analysis on Nintendo
History/Timeline:

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1991- Increased to 100 licensees; rescinded its exclusivity requirements 1992- Nintendo had 40% market share (Sega with 60%) Left alliance they had with Sony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

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

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

Opportunities:
• Moving into more markets (i.e. schools)
• Eliminating competition
• Updating technology/Constant innovations
• Moving into a more markets
Threats:
• 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
Continue Reading
View Writing Issues

You May Also Find These Documents Helpful

  • Satisfactory Essays

    Video Game Console and Nintendo
    • 297 Words
    • 2 Pages

    Video Game Console and Nintendo

    The Microsoft and Sony are competitors for Nintendo Wii. And Nintendo is doing pretty good compared to these companies.…

    • 297 Words
    • 2 Pages
    Satisfactory Essays
    Read More
  • Good Essays

    Home Video Game Industry
    • 1117 Words
    • 5 Pages

    Home Video Game Industry

    Nintendo provide cheapest, faster version of the console to the market, then strength on the software product such as games. The licensing program makes it possible strict control the…

    • 1117 Words
    • 5 Pages
    Good Essays
    Read More
  • Powerful Essays

    Anti Trust Atari vs Nintendo
    • 1655 Words
    • 7 Pages

    Anti Trust Atari vs Nintendo

    Schmitt, R. B. (1992, Feb 13). Nintendo suit filed by atari is going to trial. Wall Street Journal. Retrieved from http://search.proquest.com/docview/398260885?accountid=44759…

    • 1655 Words
    • 7 Pages
    Powerful Essays
    Read More
  • Powerful Essays

    Analysis of Nintendo
    • 1549 Words
    • 7 Pages

    Analysis of Nintendo

    Strengths: One of the biggest strengths for Nintendo is their completely sensitive human resource issues. Recently Nintendo hired a company, Xylo, Inc., "to provide Nintendo employees with a private online network of work/life products and services designed to help them balance the responsibilities of work and home" (Business Wire, 2000, PG). Nintendo recognizes that employees are a company's most important assets, and like many Japanese companies it strives to make the employees as comfortable and loyal as possible. Because a company strives to seek the comfort and happiness of employees, this normally makes for a very loyal and hard-working employee.…

    • 1549 Words
    • 7 Pages
    Powerful Essays
    Read More
  • Powerful Essays

    Advancement of Video Games
    • 1697 Words
    • 7 Pages

    Advancement of Video Games

    With all the success of Nintendo, a second known Video Arcade company would step up to challenge Nintendo in sales. This company was Atari Co. Atari’s first…

    • 1697 Words
    • 7 Pages
    Powerful Essays
    Read More
  • Good Essays

    Nintendo Stock Market
    • 711 Words
    • 3 Pages

    Nintendo Stock Market

    The stock market is a market in which shares of publicly held companies are issued and traded either through exchanges or over the counter markets. When I first began my journey in the stock market game I was hesitant on which stocks to purchase. After consulting with my partner we both agreed to invest in a company that we have regularly purchased from for years. The company we decided on was Nintendo. Nintendo is a company known for gaming systems, such as the Wii and Nintendo DS. When choosing this stock I considered my history with the company and upon reflection I realized my first personal purchase of Nintendo occurred in kindergarten and I have regularly continued to purchase from this company ever since. I also took into account the…

    • 711 Words
    • 3 Pages
    Good Essays
    Read More
  • Satisfactory Essays

    Wii Notes
    • 536 Words
    • 3 Pages

    Wii Notes

    1. How attractive was the videogame console industry in 1985 (when Nintendo was the volume leader)? What did Nintendo do to position itself relative to the 6 forces?”…

    • 536 Words
    • 3 Pages
    Satisfactory Essays
    Read More
  • Powerful Essays

    A Nintendo
    • 10161 Words
    • 41 Pages

    A Nintendo

    Unfortunately, recently attitude of consumers and environment has been changing unfavourably for the Nintendo. This analysis is to reveal the key successful factors that made Nintendo a leader in its industry, touch the weak points or mistakes it has done and recommend some strategies to keep Nintendo a leading player.…

    • 10161 Words
    • 41 Pages
    Powerful Essays
    Read More
  • Good Essays

    Home Video Game
    • 1115 Words
    • 5 Pages

    Home Video Game

    Nintendo established a commanding worldwide position by the end of the decade. The first step of Nintendo was to license video game technology from Magnavox. Then, Nintendo tried to develop its own video game machine (Famicom) that combined superior graphics processing capabilities and low cost. In the US, Nintendo established a subsidiary named as Nintendo of America (NOA) by 1980, and Nintendo repositioned the market in U.S. NOA spent about 2% of sales budget for advertising and also sought out promotion partner, and it practiced careful inventory management in releasing its new games. In conclusion, Nintendo made an innovative new game system which had some competitive advantages…

    • 1115 Words
    • 5 Pages
    Good Essays
    Read More
  • Powerful Essays

    Internal Analysis sony
    • 2459 Words
    • 10 Pages

    Internal Analysis sony

    Nintendo, which is one of the video game industry competitors, have been the worldwide leader in creating the entertainment games. Nintendo’s video games have been sold everywhere in the world and they became in the list of the worlds best selling. The latest gaming console system, which is considered as a revolutionary video game console, was the Wii. It attracted a large number of people from different ages, which resulted in a large number of sales and profit. Unfortunately, nowadays the demand of the video games slightly decreased because of the new games and devices introduced recently. This internal analysis of Nintendo conducts its competitive strength assessment versus its competitors and analyzes the firm using the value chain analysis tool and the VRIO framework.…

    • 2459 Words
    • 10 Pages
    Powerful Essays
    Read More
  • Powerful Essays

    Nintendo's Success
    • 2846 Words
    • 12 Pages

    Nintendo's Success

    From a playing card company to a global video game producer that designs and manufactures the leading products in its sector, Nintendo has achieved success through strategic thinking. The combination of clear vision, solid purpose, efficient structure, creative leadership, and unique strategy paved the way for Nintendo to rise as one of the top three video game manufacturers.…

    • 2846 Words
    • 12 Pages
    Powerful Essays
    Read More
  • Better Essays

    The Wii: Nintendo's Video Game Revolution
    • 1493 Words
    • 6 Pages

    The Wii: Nintendo's Video Game Revolution

    Nintendo came into existence in 1889 in Kyoto, Japan. The company is basically a manufacturer of games and toys. It started with producing handmade paying cards, and then ventured into toys and games after World War II. In 1970, it shifted from traditional toys to electronic entertainment products. The company began designing home video gaming consoles and arcade games for arcade centres, shopping malls, and taverns. When computer market emerged in 1983, most console manufacturers did not survive the business and withdrew from the market either through bankruptcy or by diverting their attention to their other product lines. Despite this decline in home video gaming market, Nintendo still pursued the home video gaming console and made its own Nintendo Entertainment System (NES). The company also changed the video games from the usual structure of violence to games that have themes of “good and evil, honour and disgrace, beauty and horror.” The company has experienced several challenges especially during the rise of the home computer market. Nintendo was slow to tap the opportunity of home computer games until such time in 1995 that Sony introduced PlayStation console, then followed by Microsoft’s Xbox. Since…

    • 1493 Words
    • 6 Pages
    Better Essays
    Read More
  • Best Essays

    Nintendo's Strategy
    • 4059 Words
    • 17 Pages

    Nintendo's Strategy

    Nintendo’s strengths include a well established brand name, well known franchises, ability to manufacture goods at a low price and innovative products as will be discussed later in this report.…

    • 4059 Words
    • 17 Pages
    Best Essays
    Read More
  • Good Essays

    Argumentative Essay About Video Games
    • 1335 Words
    • 6 Pages

    Argumentative Essay About Video Games

    “Atari spent millions of dollars in 1982 to make a home version of the hit movie E.T. the Extra-Terrestrial in hopes that people who liked the movie would also like the game. Many people, however, were upset at the poor quality of the game, and it did not sell well. Atari lost the money it put into the game and nearly went out of business” (“history”). This game was a big part of the video game crash in 1983. Nintendo pulled the game market out of its crash when they released the NES or Nintendo entertainment system in 1985, and on this console they created on of the most popular video games of all time Super Mario Bros, and this game created one of the most well known video game characters who was an Italian plumber named Mario who is Nintendo’s biggest character and marketing piece by far. “In 1995 Sony released the PlayStation to compete with Nintendo and Sega. This console used CD-roms instead of cartridges, this allows games to store more information, and this led to movie quality graphics, and less expensive games” (“history”). One year after the PlayStation Nintendo released the n64, But people preferred the PlayStation, and it outsold the n64. In 2000 Sony released the PlayStation 2, and it went on to become the most successful console of all time selling more than 157 million units. One year after the ps2 Microsoft releases the Xbox. Video games will never stop getting newer and…

    • 1335 Words
    • 6 Pages
    Good Essays
    Read More
  • Good Essays

    Dialogue
    • 476 Words
    • 2 Pages

    Dialogue

    Throughout the 3rd generation, it was clear to see the market was categorised a “winner-takes-all” market as a result of Nintendo and their NES. What was so particular about NES and Nintendo’s dominance of the market, specifically 80% of the 2.3$ billion, was the network effect they had innovatively created.…

    • 476 Words
    • 2 Pages
    Good Essays
    Read More