1. Conduct a 4C's Stakeholders Analysis of Nintendo in 2006.
Consumers: In 2006 Nintendo President, Iwata, due to research mainly based on the Japanese video market identified a drop of sales and decided to change the company vision and strategy in regards to segmentation and reach out to an unexplored market until then. The main characteristic of the target market was the demand for easy to use, simple and fun applications. Even though the traditional target market until then was aiming to young males, Nintendo demographical target market was with no age or sex limitations or social status. The family and friends were of the highest interest for Nintendo (multiple target segmentation). With this approach Nintendo attempted to reach out to all non gamers with simple applications and realistic games. “Wii is designed to ...view middle of the document...
Nintendo tried to position the “Wii” as a cool, no age limit, and low-budget alternative console.
Competitors: Microsoft (Xbox 360), Sony (PS3) and Sega seem to be the main direct Nintendo competitors. The point of contact is obviously gaming, but the point of differentiation is the gaming experience and extra features. Microsoft and Sony introduced HD gaming and graphics. The Xbox 360 offered good memory and quality graphics. The PS3 had moved ahead from the DVD to the Blu-ray format winning on storage capacity and graphics to deliver high-definition video. On the other hand Nintendo’s Wii had motion sensors with excellent processing power, high-definition graphics, WiFi connectivity and massive storage capacity. Nintendo’s Wii also came in frond as a most cost effective solution; as it did not use Blu-Ray technology and increased number of Cell (2 vs. 8 for the PS3 in the IBM processor), which increases the cost and seemed to be a feature that consumers in general did not need. Nintendo counted on its easy-to-use controller and aimed to become “a game changer”. How much of a threat does competition pose? If Nintendo is targeting a market segment that the other 3 competitors are not there yet, then the threat is small. It is desired as well that the Competitor Brand Loyalty will not stop existing gamers to try a different gaming approach. As indirect competitors we can consider Apple (iPhone) and all MP3 player even PC platforms that enjoy a slide of the targeted Nintendo segmentation.
Community: Nintendo strategy has positioned the “Wii” as cool, fun machine that brought together friends and family. Nintendo promoted the physical exercise, sports and less violent games through “Wii”. The “Wii” promotion was based on word-of –mouth strategy, by choosing suburban housewives to spread the word between friends and family, that with this new gaming consol all can have fun together. Moreover by using YouTube or other social networking sites the “Wii” entered the market.