Nintendo

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Nintendo Case Study
1. Characteristics of game console industry?
Competitive technology-focused, with hardcore gamer as a target market. Fast changing industry, since the product lifecycle is comparatively short. People demand shifted as economy changes. Different specs, model, and prices are needed to fulfill the ever-changing demand. Game console company have to balance between suitable price and quality. People are looking for new experience of game playing.

2. The Five Forces
In the game console industry, the competition is a warzone between three big game console company.

2. The Five Forces (continue)
Buyer:
Customers lose their purchasing power due to economic recession, however the customer group expands from just hard-core gamer into elderly and female gamer. Retailers also lose purchasing power (In order to survive recession).

Supplier:
Since Nintendo sorted more than one single supplier in year 2007, suppliers have lost their bargaining power. In addition, due to the strong brand and software development (cd game), suppliers find it hard to forward integrate into a competitor.

2. The Five Forces (continue)
Competitor:
Sony.
Higher price as Premium gaming console.
Fast response to market change.
Good technology capabilities and Innovation(blu-ray).

Microsoft.
Target in different levels of market.
Produce variety of version with different price and service to target every section of customer. (Lowest-end product has the same price as Nintendo Wii and high-end match PS3)

China product.

2. The Five Forces (continue)
Substitute:
PC game
Arcade game
Handheld game (Mobile/Tablets)
New Entrants:
Hard to penetrate since it needs strong brand, marketing (reputation) and high distribution power (global scale)

3. Driving Forces
Strong Competition in technology among rivalry.
Nintendo cannot compete in technology with Sony and Microsoft; therefore they...
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