Nintendo's Wii Case Analysis
BUSN412 Business Policy
January 20, 2012
COMPANY NAME: Nintendo Co., Ltd.
INDUSTRY: Technology and Communication
COMPANY WEBSITE: www.nintendo.com
Nintendo Co. Ltd. Is a Japanese based company founded in 1889. It was originally a playing card company and in 1979 it began to develop its first video game system, known as TV Game 15 and TV Game 6. In 1980, Nintendo develop the first portable LCD video game with a microprocessor. In 1985 Nintendo developed the 8-bit video game console Nintendo Entertainment System, or NES. As of Dec. 31, 2011, Nintendo had revenue of $9.58 billion. This case study will focus primarily on the Nintendo Wii, their newest video game console and look at its sales over the past four years. SWOT ANALYSIS:
Strengths: Nintendo has four main strengths, mover advantage, a strong brand name, their loyalty to the customers, and a very broad appeal. With the introduction of the Wii, Nintendo had been able to enter the market with new perspective and the Wii’s motion-sensing technology has been able to help Nintendo gain more and more customers and prevent them from becoming a failing company Weaknesses: Nintendo is not a technology based company, they rely on many outside suppliers and manufacturers to provide parts for their gaming systems. They rely to a great extent on these third party companies in order to stay afloat. The Wii console lacks many core features, such as high definition, a strong online network, and high quality graphics. Opportunities: The Nintendo Wii is the only gaming console on the market that is actually turning a profit. In Forbes’ 2008 article, “Wii’s Future in Motion,” they said that the average profit per unit sold is $6, which amounted to approximately $180 million in revenue for 2008. Even though Nintendo hasn’t been able to compete when it comes to the technological level, they are still able to...
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