Nintendo Wii U

Topics: Video game console, Wii, Nintendo Pages: 30 (5766 words) Published: April 17, 2015
ID-number: 0945782
0923568

Term Paper
Handelshøyskolen BI

- Wii U Case Study -

Exam code and name:
EXC 2112 – Consumer Behavior

Deadline:
11.12.2013

Place of study:
BI Oslo

Programme:
Bachelor in Business Administration

Table of contents

Table of contents.................................................................................................................i Summaryiii
1.0 Introduction1
1.1 Present situation1
2.0 Swot analysis2
2.1 Strengths2
2.1.1 Unique features2
2.1.2 High brand awareness2
2.1.3 International presence2
2.1.4 Backwards compatibility3
2.1.5 Price3
2.1.6 Exclusive titles3
2.2 Weaknesses4
2.2.1 Weak sales figure4
2.2.2 Dependence on suppliers4
2.2.3 Child friendly image5
2.2.4 Loading time5
2.3 Opportunities5
2.3.1 Growing online gaming market and social networking5
2.3.2 Improved sales due to price cuts and launch of high-profile titles5 2.3.3 Improved cooperation with third party suppliers6
2.4 Threats6
2.4.1 Intense competition6
2.4.2 Currency fluctuations7
2.4.3 Short product lifecycle7
3.0 Consumer behavior7
3.1 Market segmentation7
3.1.1 Nintendo previous segmentation strategies8
3.1.2 Entering the eight generation of video game consoles8 3.2 Motivation9
3.3 Personality9
3.5 Consumer attitude9
3.6 Changing brand beliefs10
4.0 Culture and social influence11
4.1 Power distance11
4.2 Uncertainty avoidance11
4.3 Individualism vs Collectivism12
4.4 Masculinity vs Femininity12
4.4 Long vs short-term-orientation12
5.0 The relationship between Wii U and Nintendo 3DS13
6.0 Major issues underlying Wii U sales figures14
6.1 Weak launch titles14
6.2 Lack of marketing14
7.0 Marketing actions14
7.1 Japan and Western Europe15
7.2 The US and North Europe15
7.3 East and Southern Europe15
Conclusion...................................................................................................................iv Reference list...............................................................................................................v Appendix...................................................................................................................viii

Summary

The following study will focus on possible underlying reasons of Nintendo Wii U´s disappointing sales figures and present an analysis of measures needed to be done for sales improvement. The study is organized as follows. Firstly, it will provide an SWOT-analysis, to point out the company´s strength and weaknesses. Secondly, it will move on to discuss consumer behavior, from a general, cultural and social aspect, and to what extent Nintendo can make use of knowledge within this area to improve sales. The study will then highlight the relationship between Nintendo´s products, and aim to explain possible reasons behind Wii U´s bad launching, and provide marketing actions to be taken. Finally, a conclusion of the study will be provided, by discussing how consumer behavior can help us better understand issues within home video game companies, such as integration between platforms and exclusive contracting.

Nintendo: Innovators in an Oligopoly
"The next generation is a place, where the best idea, not the biggest budget will win" - Saturo Iwata, President and CEO of Nintendo Co. Ltd

1.0 Introduction
When Nintendo Co.,Ltd first saw the light of day at the end of the 19th century´s Japan, the company quickly grew to be a major player and innovator within the gaming industry. Today, over a century later, Nintendo is still doubtless one of the most important and relevant companies within gaming and technology worldwide, and also listed as one of Japan´s most valuable companies.

The success began in 1889, when Nintendo-founder Fusajiro Yamauchi, commenced the production and distribution of handmade wooden game cards called "Hanafuda". This brought back the popularity...
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