Posted on December 17, by Scott Alexander I.
What is the challenges of their industries, because they are in several industries actually if you think about it, and how can they improve the performance? So hopefully, you enjoy. So just give an introduction, the team here, this is the team that we had and their names are below.
Because I thought it was more appropriate to do so. What is Nintendo, first of all? Well, if you remember maybe as a kid, at least I did on Christmas day, getting a Super Nintendo was probably the best Christmas present I ever got.
It was I think and I was pretty excited about it. I did know what it was because a buddy down the road, he had the original Nintendo system and we used to play Mario together. Anyway, so what makes Nintendo interesting is their core value proposition. What is it about Nintendo that makes them so strong in the marketplace?
You also have this element of characters and trust. Everyone loves Nintendo products for this reason, right? But we wanted to focus in on the console hardware itself because that is an area where we can parse and avoid talking about the App Store and Android stores in great depth which complicates our analysis quite a bit.
But no matter what, you still have to have third-party developers to really give the ecosystem as it were, right? The array of potential games you can play. You want to give it the widest breadth as possible.
Certainly, consoles actually are a loss leader to a certain extent. So you also have distributors, so those are obviously kind of connected to publishers in that they sell and get the video game software, part two and the consoles, to the various marketplaces.
You know, these are enthusiasts who love Nintendo. So the industry is unattractive but they actually are doing competitively well in an industry that is very unattractive.
Still an unattractive industry, but they have a competitive advantage in an underperforming industry, interesting enough.
And again as I was saying, a return on sales is way more important than ROA. You could read that on your own time. A bit nuanced here, but basically the message is: But the console generation pressures is why arguably this is all happening.
So the technology change makes every manufacturer of this hardware wary and probably weary as well because you have to basically start a new… Build a new console roughly every 2. What I mean by that is actually, the original Macintosh which was released in was actually not very successful.
Now, as a result, Apple struggled greatly. They even got rid of Steve Jobs, one of the founders of Apple in because of the struggles the company was under. Buyer power is medium… Sorry. So you might actually have a game that launches exclusively on the Wii U as is the case with Bayonetta 2.
In fact, I remember when the Nintendo 64 came out, I was really excited about Goldeneye because that was an amazing game that my cousin had bought and was playing on his Nintendo 64, so I had to get a Nintendo 64 for that reason. Threats of substitute is another key idea.
Rivalry is really interesting. I mean, you can recall perhaps there was Sega company which eventually was disband.
So value creation, those three: These are different businesses or positions that you could take as a business, so you could see that the arcades were narrow and low-cost. So they were only focused on, you could only literally play one game on an arcade machine and it was relatively low cost.
So customer segments is really important, I think. They are very much a playful company in that sense and the Wii contributed to the idea of who they are rather than detracting from it. You have to have, you know, strategic issues here. As mentioned, you know, this decision of the short life cycles of their platform.
So you have a lot of other issues as well like excess and industry…inventory. And that was really a critical move, by the way.Transcript of Nintendo's Disruptive Strategy. Disruptive Strategy What is a Disruptive Strategy? An innovation that creates a new market by applying a different set of values.
"To remain at the top of their industries, managers must first be able to spot disruptive technologies. To pursue these technologies, managers must protect them from the. Nintendo Case Analysis - Dang Vinh Giang.
Nintendo Report. Student Example Report Nintendo. Nintendo Disruptive Strategy. Nintendo Demographics. Nintendo History. Etude de cas: Nintendo Analysis of Nintendo’s Strategy in (tugas kelompok) 5/5(1).
Nintendo Wii with its disruptive strategy reposition itself by developing a radically different console, focusing on the non-gamers group which was neglected by the market leaders (Sony & Microsoft), also Nintendo Wii focused on emulating the real life games.
Nintendos Disruptive Strategy: Implications for the Video Game Industry Case Solution,Nintendos Disruptive Strategy: Implications for the Video Game Industry Case Analysis, Nintendos Disruptive Strategy: Implications for the Video Game Industry Case Study Solution, In April , Nintendo took seventh place in the annual BusinessWeek-Boston Consulting Group ranking of the most innovative.
The Case Centre is a not-for-profit company limited by guarantee, registered in England No and entered in the Register of Charities No VAT No GB It is also the trading name of The Case Centre USA, a non-profit making company. Read the case study located on page of the section titled Case Studies in your textbook and prepare a 3- to 4-page report in a Microsoft Word document concerning the following situation: To consider the viability of Nintendo's new strategy, the CEO of Nintendo, has brought you in as a consultant.