Nintendo�S Innovation Strategies: a Sustainable Competitive Advantage?
Introduction ………………………….……………………………………….……3
Industry analysis ……………………………..………………….……...…......4
Competitors strategy ……………………….……………………………………. Microsoft – A differentiator………………………….…......7 Sony – A differentiator ……………………….…………………9
Analysis of competition………………………………………………………11
Nintendo’s strategy …………………………………..……………………….14
SWOT ………………………….…………………………………………………….17
Recommendations …………….………………………………………………18
References ……………………………..………………………………………….20
Introduction
The first video game was created in the 1960 's. Half a century later, the industry of video games represents a 42 billion Pound industry. The recent significant increase in this industry is due to the growth of broadband, the adoption of more robust wireless networks and phones, and the consolidation of game developers and publishers. This global turnover is divided in two parts: the software component is worth (32 billion pound) and the hardware component is worth (10 billion pound). Some recent analysis shows that there is about 300 millions of players in the world. It is quite difficult to find the exact number because a game or a console can be used by more than one player.
The Video Game Hardware market is dominated by three main competitors: Nintendo (49%), Microsoft (30%) and Sony (21%). While the video game software market is dominated by four companies: Nintendo (19%), Activision (12%), Electronics Arts (11%) and Konami (5%).
These figures indicate that Nintendo is the leader on the video games market, on hardware and software.
Nintendo Company was created in 1889 by Fusajiro Yamaushi as a playing cards creator. The company has now expanded well beyond card making. Today it has several divisions including Video games, consoles, manga. Nowadays Nintendo is led by Satoru Twata and headquarter is in Tokyo. The organization employs 4200 peoples, has a turnover of 10 billion of £ and a result of 1,5 billion of £. This report analyses Nintendo 's global situation,
Industry analysis ……………………………..………………….……...…......4
Competitors strategy ……………………….……………………………………. Microsoft – A differentiator………………………….…......7 Sony – A differentiator ……………………….…………………9
Analysis of competition………………………………………………………11
Nintendo’s strategy …………………………………..……………………….14
SWOT ………………………….…………………………………………………….17
Recommendations …………….………………………………………………18
References ……………………………..………………………………………….20
Introduction
The first video game was created in the 1960 's. Half a century later, the industry of video games represents a 42 billion Pound industry. The recent significant increase in this industry is due to the growth of broadband, the adoption of more robust wireless networks and phones, and the consolidation of game developers and publishers. This global turnover is divided in two parts: the software component is worth (32 billion pound) and the hardware component is worth (10 billion pound). Some recent analysis shows that there is about 300 millions of players in the world. It is quite difficult to find the exact number because a game or a console can be used by more than one player.
The Video Game Hardware market is dominated by three main competitors: Nintendo (49%), Microsoft (30%) and Sony (21%). While the video game software market is dominated by four companies: Nintendo (19%), Activision (12%), Electronics Arts (11%) and Konami (5%).
These figures indicate that Nintendo is the leader on the video games market, on hardware and software.
Nintendo Company was created in 1889 by Fusajiro Yamaushi as a playing cards creator. The company has now expanded well beyond card making. Today it has several divisions including Video games, consoles, manga. Nowadays Nintendo is led by Satoru Twata and headquarter is in Tokyo. The organization employs 4200 peoples, has a turnover of 10 billion of £ and a result of 1,5 billion of £. This report analyses Nintendo 's global situation,
References: The video game industry, an industry analysis, from a VC perspective / center for digital strategies, 11 march 2005) Analyzing Apple 's Threat to Sony, Nintendo by Brian Caulfield, 29/09/2009 Competitive Strategy in Game Consoles by Jay Conrod, Klimka Szwaykowska, 7/03/, 2007) Iwata, S Hall, K. (16 November 2006) “The Big Ideas behind Nintendo’s Wii”, Business Week (accessed 25 June 2008) Bower, J.L Sanchanta, M. (26 September 2007) “Nintendo Market Cap Rockets”, Financial Times