Nintendo's Disruptive Strategy

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FACULTY OF BUSINESS, COMPUTING AND LAW

Programme: Bachelor of Arts (Honours) in International Business (N203) Module: International Business Economics & Strategy (6EC500) Assignment: Management Report of Nintendo Co. Ltd
Lecturer: Polina Baranova
Student Name: Danial Azim bin Shahrunisam
Student Number: 100291845
Submission date: 10th May 2013
Word Count: 3064 words incl. appendixes and tables

Contents
Part 1: INTRODUCTION…………………………………………………………………..3
History Of Nintendo………………………………………………………………………………3
Situational Analysis……………………………………………………………………………….5
Nintendo’s SWOT Analysis…………………………………………………………………….5 Part 2: NINTENDO’ STRATEGIES……………………………………………………..7 Part 3: COMPETITIVE ADVANTAGE…………………………………………………8
Nintendo’s Porter’s Five Forces…………………………………………………………….8
Summary………………………………………………………………………………………………9 Part 4: RECOMMENDATIONS AND CONCLUSION……………………………9
Conclusion…………………………………………………………………………………………….9 REFERENCES…………………………………………………………………………………10 APPENDIX……………………………………………………………………………………..11

Part 1: INTRODUCTION
Nintendo Co Ltd, one of the leading players in the video game industry, has faced a challenge of developing and maintaining competitive advantage over recent years. With the introduction of their Wii console, they successfully disrupted the dominance of their rivals. However, competitors Sony and Microsoft are quickly gaining on Nintendo’s competitive advantage, forcing the company to monitor and reevaluate its strategies. To maintain a competitive advantage, Nintendo must look toward influencing customers of Sony and Microsoft, continue with developing innovative technologies, and also consider the impact of tablets and smartphones on the gaming industry. History of Nintendo

In 1889, Nintendo Co. Ltd began its long history as a Japanese manufacturer of playing cards. The company went public in 1963, and by the 1970s Nintendo had begun directing its focus toward electronic toys and video games. Nintendo became a leader in the video game industry in the ‘80s with its home video game consoles and popular game titles. Competitors began to emerge in the ‘90s; the release of Sony’s Playstation platform broadened the video game market, and the rising popularity and improvement of PC technology led to the use of PCs as gaming platforms. While capitalising on the popularity of PC gaming, Microsoft developed and released its Xbox game console in 2001. While the competition focused on technological advancements to make improvements to existing game console, Nintendo developed its newest console with an ambitious design which uniquely competing in the market – The Wii family. The release of Wii in 2006 propelled Nintendo back to the top of the gaming industry thus secured its competitive advantage. However, since the release of Wii, Sony and Microsoft have been trying to play catch up with Nintendo with both companies releasing their own version of Nintendo’s wireless remote controllers called Playstation’s Move and Xbox Kinect respectively. At that point, they were trying to recoup the casual gamer market that was pioneered by Nintendo by publishing similar simpler games like Brunswick Pro Bowling for Sony’s Playstation or Kinect Sports for Microsoft’s Xbox (The Guardian, 2010).

Nintendo’s Recent Products – 2008 to 2013
2008| Nintendo launched its viral fitness video game “Wii Fit” in the US with its unique peripheral platform Wii Balance Board. In the same year, Nintendo also introduced its successor of DS Lite, Nintendo DSi, a revised handheld console with two cameras and wireless access to its Nintendo DSi shop. | 2009| Nintendo DSi XL debuted which features larger screens, and a greater overall size than the original DSi. | 2011| Nintendo launched a new handheld console, the Nintendo 3DS, which allows users to view 3D content without the use of special glasses. | 2012| The highly anticipated successor of the Wii, Wii U is released in the US market. | Table 1 : Nintendo’s...
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