Nintendo's Success

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You might laugh at a 12 year old when he claims his Pokemon game is serious business, yet you must admit that at Nintendo, games are serious business. Ever since 1975 when Nintendo made the significant key transition from a national playing card/small scale electronic toy company to an international video game company, its business has been blooming. From the earliest Game&Watch in 1976 to the Gameboy in 1989, and the Nintendo DS in 2004, Nintendo generated one after another landmark product that won the hearts of millions of video game players all over the world (History of Nintendo.) In 2006, the company introduced innovative Wii to the market, redefining the boundary of video games and opening a new channel for the company’s business. 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. Nintendo creates values for its customers. For example, when a grade school child screams with joy upon receiving a Nintendo DS for Christmas or when the entire family sits in front of TV to play Wii baseball on a rainy Sunday, we have evidence that customers value Nintendo products. The company’s devotion to serve its customers is its strongest motivation to constantly renovate and design products that could fit better into the consumers’ life styles, hobbies, and budgets. Nintendo’s products are widely welcomed by consumers because the company knows consumers’ needs and wants and mobilizes its capital, human, and technological resource to make different dreams come true. The design of Wii perfectly exemplifies Nintendo’s consideration for its customers. The multi-part device is elegant, compact, lightweight, and energy efficient. Gamers can purchase different parts, such as the console, the remote, the nunchuk, or the balance board, according to individual needs. Wii is especially outstanding in is its design concept of family fun. This game theme contradicts the traditional parents’ view of video games, yet it is so urgently needed by the families that have little quality time to spend together nowadays. Wii brings families together to play sports, raise Pokemon, or even sing. The unique set up of the device invites multiple players and creates an atmosphere of bonding. On the other end of the market, Nintendo creates values for its business partners. The company’s extended branches of developers and transatlantic joint ventures are at the core of its value creation through partnership. The company parcels out the design and development of new product and new versions of existing products to multiple levels of developers around the globe. These developers are composed of smaller software design companies or individuals who do not have enough resource to stand strong alone in the vast industry. The partnership with Nintendo, the well-known video game producer, not only provides the developers with monetary support—crucial for the survival of small businesses—but also allows the developers opportunities to improve by accessing a wider range technology and resources. For example, iQue, Limited, is a Chinese joint venture with Nintendo. iQue manufactures and distributes official Nintendo consoles and games for the mainland Chinese market under the iQue brand. With the support of Nintendo, Wei Yen, iQue’s founder, has also able to design and produce the company’s own first product, iQue (Nintendo.2008 Annual Report.) Nintendo’s effectiveness in continuously creating value for its customers and business partners is based on its delicately structured business model. The company is now a multinational corporation with multiple principal offices and distribution centers in North America, Oceania, Europe, Africa, and...
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