HBR Porter 1996 What is Strategy
Will case study:
Nintendo’s 2 game platforms (handheld DS lite & the Will: 17-generation video game console) Market value: > 10 billion dollars. Competitors: Sony’s PS range & Microsoft’s Xbox 360
Key success: (1) Innovative Features: 1) wireless controller (the Wii remote) handheld pointing device/detect movement in 3 dimensions; 2) WiiConnect: receive message & upload over the Internet; (2) Segmentation Strategy: aimed at a different target audience: underserved segments (more women and families) teenage boy’swomen and families “Blue ocean” strategy: creating a market where previously there was not one. 15-30 males -> neglected female and older males. Risk: new market with new product; damage market position and reputation with existing customers if fail.
Benefit of segmentation: 1) effectively fulfill customer needs-> higher profitability & better marketing communications; 2) more loyal customers (more stable target market by retaining customers) 3) further opportunities for growth, expansion, and domination of the new segment
Reality: plenty of time used to get the communication right: When launching the Brain Trainers Nicole Kidman (press coverage but not work with targeted audience) -> Zoë Ball and her father Johnny, the Redknapps, Girls Aloud and Fern Britto (advertisement worked and game’s antisocial image improved)
Unintended Consequences:1) spontaneous proliferation of ‘Wii parties’, where groups get together for a night of Wii sports and games. Eg: Nintendo partnered with website Evite to create a series of invitations. 2) Microsoft: pre-Christmas campaign aimed at making its Xbox appear more family-orientated -> rethink the entire marketing strategy/ more creative advertising strategy
Next? 1) Medical health for the elderly (try aerobics, yoga and balance games: whether the console can help improve balance) 2) about to release the latest fitness gadget called Walk With Me (age:9-95) -> excellent revolution of turning exercise into a game
Nintendo’s 2 game platforms (handheld DS lite & the Will: 17-generation video game console) Market value: > 10 billion dollars. Competitors: Sony’s PS range & Microsoft’s Xbox 360
Key success: (1) Innovative Features: 1) wireless controller (the Wii remote) handheld pointing device/detect movement in 3 dimensions; 2) WiiConnect: receive message & upload over the Internet; (2) Segmentation Strategy: aimed at a different target audience: underserved segments (more women and families) teenage boy’swomen and families “Blue ocean” strategy: creating a market where previously there was not one. 15-30 males -> neglected female and older males. Risk: new market with new product; damage market position and reputation with existing customers if fail.
Benefit of segmentation: 1) effectively fulfill customer needs-> higher profitability & better marketing communications; 2) more loyal customers (more stable target market by retaining customers) 3) further opportunities for growth, expansion, and domination of the new segment
Reality: plenty of time used to get the communication right: When launching the Brain Trainers Nicole Kidman (press coverage but not work with targeted audience) -> Zoë Ball and her father Johnny, the Redknapps, Girls Aloud and Fern Britto (advertisement worked and game’s antisocial image improved)
Unintended Consequences:1) spontaneous proliferation of ‘Wii parties’, where groups get together for a night of Wii sports and games. Eg: Nintendo partnered with website Evite to create a series of invitations. 2) Microsoft: pre-Christmas campaign aimed at making its Xbox appear more family-orientated -> rethink the entire marketing strategy/ more creative advertising strategy
Next? 1) Medical health for the elderly (try aerobics, yoga and balance games: whether the console can help improve balance) 2) about to release the latest fitness gadget called Walk With Me (age:9-95) -> excellent revolution of turning exercise into a game