_ Hoang Ngoc QuynhAnh
_ Pham ThanhTu
_ Truong ThanhThao
_ Le Vinh Hoang Minh
_ Tran DinhHuy
_ Mai Quoc Tuan
Case Executive Summary
Nintendo’s Strategy in 2009
Bachelor of Business – BBUS 2012
Subject: Strategic Management
Date of presentation: 11/4/2012
Strategic Management Project
Assignment Cover Sheet
We agree that all group members have contributed equally to the group work.
Table of Contents
I. INTRODUCTION: 3
II. ANAYLYSIS OF INDUSTRY AND NINTENDO COMPANY: 3
1. Industry circumstances: 3
2. Key success factor: 3
3. Competitively important resources and capabilities of Nintendo: 4
III. ...view middle of the document...
3 million in June 2008 to $382.6 million in June 2009.(Thompson, Peteraf, Gamble, Strickland 2012, p.C-102)
2. Key success factor:
* Technology capabilities: Nowadays there are a lot of new technologies can affect the game console industry such as touch technology, 3D technology, the faster of chip system. The new generations of game console in a near future are based on these new technologies and it takes a lot of time to research and development department to apply new technologies to their products.
* Understanding the market: Technology is not an extremely important factor itself. Back to the late 1990s and early 2000s, technology superiority used to be perceived as an super important factor in gaming industry. But at the current situation, when Nintendo’s Wii is outselling other rival’s products with it creative game play despite the low-tech it offered. The Wii’s case has proved that just only technology does not assure for the success in this industry. Instead, they have to understand their real need of the market target – the true insight of customers they want to serve and then develop new technologies that really satisfy customers’ want.
* Acceptable development and production cost: Over the long term, both Microsoft and Sony had traditionally been operating at a loss in hopes of making significant profit gain in software and game sales. For example, it was estimated that PS3 in particular was generating a $250 loss with each unit sold. According to Financial Times, however, the Wii was earning a profit per console sold estimated at around $13 in Japan, $50 in US, and $79 in parts of Europe (Thompson, Peteraf, Gamble, Strickland 2012, p.C-103). Companies in game console segment have to choose the strategy that reach acceptable development and production cost, or these costs become liabilities for them.
3. Competitively important resources and capabilities of Nintendo:
* Resources | Capabilities |
Tangible resources: | |
Technological assets | Creating the content in its game consoles to appeal customers with outstanding values |
Financial resources | Giving a base to develop R&D and Marketing departments |
Intangible resources: | |
Human assets and intellectual capital: Strong team of experts in research and development, marketing etc.Strong company’s management, headed by Satoru Iwata. (Thompson, Peteraf, Gamble, Strickland 2012, p.C-95) | R&D helped Nintendo reach technological advancement and game concepts, develop existing product line and creating new innovative products.Marketing team gave it innovative marketing strategies such as slogan “Wii would like to play” (Thompson, Peteraf, Gamble, Strickland 2012, p.C-102)Satoru Iwata’s ability to predict the future of video gaming and direct the company in a right way. |
Brands, company image and reputation: History with creative gaming, past success with family gaming model, 25 years extensive experience in the video game industry |...