A Nintendo

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Phase 1 Report: Strategic Position Analysis
Industry
Nintendo of America
Organisation Name
Organisation Contact Name
www.nintendo.com
Website URL
Email Address
4820 150th Ave. Northeast
Address
Redmond
City
WA
State / Province
98052
Zip / Postal Code
Individual
Organisation Type
Video Gaming Industry
UNITED STATES
Country
Nintendo of America Inc., established in 1980, is a subsidiary of Nintendo Co. of Japan. They have been the worldwide leader in the creation of interactive entertainment; they have sold more than a billion video games to the world (Nintendo 2010). In 2006, Nintendo created the revolutionary video game console “The Wii". The Wii was designed to attract larger demographic users than other gaming systems. It was, and still, very successful; attracted many people from different ages and it resulted in huge profits since it was created. Unfortunately, recently attitude of consumers and environment has been changing unfavourably for the Nintendo. This analysis is to reveal the key successful factors that made Nintendo a leader in its industry, touch the weak points or mistakes it has done and recommend some strategies to keep Nintendo a leading player. Organisation Background

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Organisation Profile
1.1. External Analysis
1.1.1. Pest Analysis
In terms of external analysis, it is critical to assess whether the contextual economic, social, technological, ecological, media, political, legal and ethical aspects are conducive to a specific direction. For instance, is the local government receptive to the concept of private sector participation? How are the relationships between the local government with the communities and the private sector? These are important aspects of the macro environment which will have a general impact on industries and companies. For this purpose, we will use a model called PEST analysis. This helps you to analyse the Political, Economic, Socio-cultural and Technological factors that affect the organisation. Reason

Rank
Factors
1.1.1.1 Political Factors
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 4 
US is a stable democratic country and has a newly formed government that does not seem averse to the business and the business model. Government Stability
Taxation, employment and safety law
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 3 
The tax rate for corporations is high in US (35 % for income about) (Financial Times 2010) Social welfare policies
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 4 
There are regulations and special institutions to ensure high social welfare standards. (USA Embassy 2010) New restrictive trade policies that specifically focus on products manufactured in US.  2 

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Foreign trade regulations
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Relations between government and the organisation
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US government has legislation that ensures that the console game industry has to follow a pre-defined set of rules before releasing the consoles to the public. (Chinese Embassy 2010)  3 
Government ownership of industry and attitude to monopolies and competition policy :
 2 
The US government trade policies are anti-monopolistic and they take a dim view of intensively competitive behaviour. 'Green' issues that affect the environment
 2 
International watchdogs have condemned the green policies of video game manufacturers. :
Level and type of energy consumed - renewable energy?
Video games consume lots of energy since gamers do not usually switch the games off which (Cnet News 2008)  2 
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Rubbish, waste and its disposal
International watchdogs have condemned the green policies of video game manufacturers.  2 
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Others
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US is a politically stable market for the console industry with some restrictions. However organisations that focus on green policies and energy efficiency take a strong view against the gaming console industry. Conclusion

Reason
Rank
Factors
1.1.1.2 Economic Factors
Total GDP and GDP per head growth rates (trends)
 4 
The GDP is 14.1 Trillion and the growth rate in GDP is positive but has fallen in the last year due to the...
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