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Nintendo Case Essay

2020 words - 9 pages

Case 4: Nintendo: Reviving a Company, Transforming a Market I. Case Background Nintendo is one of the household names when it comes to home video game consoles. It was a market leader until the launch of Sony’s Playstation and Microsoft’s Xbox. However, the launch of Wii in 2006 brought back Nintendo’s former glory and is now the company’s best-selling console. Wii focused on two things to transcend their competitors, PS3 and Xbox. First, as a low-price leader, they have a more favorable benefit-tocost ratio and second, they focused on “the fun of playing rather than cold tech specs”. With Wii being an instant smash hit in the market, how will Nintendo sustain this momentum and secure the ...view middle of the document...

R&D improvement. The improving R&D due to globalization led to the introduction of different gaming consoles with ever improving features. Economic: High production cost. High R&D and production cost was a big barrier to feasibility of production and delivery in the market. Economic recession of 2008. Since consumers are becoming more price-sensitive due to the recession, companies are increasingly pressured to also lower their overheads. Nintendo Company SWOT Analysis Strengths ● First-mover advantage in the motionsensing wireless technology ● Low-price leader because of the low-tech approach ● Highly-recognized brand all over the world Weaknesses ● Finds it hard to keep up with technological advancements ● Offers less variety of game titles compared to competitors1 ● May have lost consumer confidence because of failed attempt at creating a powerful gaming console Threats ● More technologically-advanced competitors are catching up ● Fast-paced industry causes most products to easily become obsolete

Opportunities ● Rising worldwide demand for massively multiplayer online games (MMOG) ● Potential of Wii to be integrated into a nearly limitless number of applications

IV. Consumer, Product Analysis & Recommendation In analyzing the case, the group regarded both markets (non-traditional and hardcore) and provided unique yet overlapping recommendations for each with the ultimate purpose of strengthening the Wii brand as a whole.

Consumer A: Non-traditional Gamers Low category involvement in terms of money and time is typically observed. For non-traditional customers, gaming is a form of leisure they enjoy when they have the extra time. Price and practicality are of the essence. The simpler and less detailed types of games are what particularly attract them since only a short span of time could be spent. There is also no current community or fan base amongst the non-traditional gamers. Product: Original Wii Currently, Nintendo Wii caters to the non-traditional gamers. Its motion sensing capability hit the market and redefined the gaming industry. Instead of using the typical handheld device, Wii requires body movements in playing outdoor and indoor games or sports. The product also gives them the opportunity to play familiar classic Nintendo video games like Super Mario and Zelda. This breakthrough magnified the enjoyment of the market segment not traditionally targeted by video game companies. In addition, Wii has also reinvented itself as an instrument for more uses. Users can now use Wii to exercise, monitor weather, read news, etc., which other game consoles do not provide. Moreover, the simplicity of using Wii has appealed to the non-traditional gamers. At the same time, the concept of group gaming has made it an instrument for socialization for family and friends. Lastly, its considerably lower price has attracted the masses and thus created more demand. Product Life Cycle: Growth Stage As mentioned in the case, 18 months after the...

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