1. Introduction
Nintendo, the Japanese video game console manufacturing company, is one of the big players in the respective industry along with Sony and Microsoft. In 2006, when the competitors were following the industry norm to improve the product features, Nintendo followed a disruptive route to target a new market with a new product that none of the competitors had: the Wii.
The following report strives to present a comprehensive strategic analysis of Nintendo for the executive board. Beginning with an analysis of Nintendo’s current strategy, the report evaluates the strategy in terms of its fit with the environment. Finally, the report presents some recommendations and implementation issues that the board needs to consider while making its decision.
2. Strategy Analysis
The strategic analysis of Nintendo has been conducted at the corporate level along with the Blue Ocean Strategy that played a key role in the formulation of its disruptive strategy.
2.1 Corporate Level Strategy
At the corporate level, Nintendo is following an Innovation Strategy that has played an important role in building its competitive advantage. Figure 1 shows an analysis of Nintendo’s innovation strategy through the framework of the Innovation Dilemma (Johnson et al., 2008). The analysis of Nintendo’s innovation strategy indicates that it used an innovative business model i.e. to position itself completely different from its competitors andquestioned how people actually want to play through its in depth customer understanding (Pontiskoski and Asakawa, 2009). Secondly, Nintendo used a technological push i.e. to target an untapped or incomplete market of gamers, as it had to convince the non-gamer adult to play on a Nintendo platform. Through its largest advertising campaign in its history, with costs over $200 million (Sliwinski, 2006), the company offered family-friendly and easy-to-use motion sensor technology.Thirdly, product innovation i.e. introduction of the Wii-mote and an infrared pointer was regarded as innovative product design (Farhoomand, 2009).
Table of Contents
1. Introduction
2. Strategy Analysis
2.1 Corporate Level Strategy
2.2 Ansoff’s Matrix
2.3 Blue Ocean Strategy
3. Evaluation of current strategies
3.1 Suitability
3.2 Acceptability
3.3 Feasibility
4. Evaluation of a Blue Ocean Strategy - A Purple Ocean?
5. Recommendations
5.1 Innovating the Business Model and Related Implementation Issues
5.2 Target Segment
5.3 Product offering &Revenue Model
5.4 Value Chain
6. Conclusion
Objectives and Core Themes
This report provides a comprehensive strategic analysis of Nintendo, focusing on its disruptive transition in the console market, the evaluation of its business model via established strategic frameworks, and recommendations for future competitive sustainability.
- Corporate level strategy and innovation models
- Strategic assessment using Ansoff’s Matrix and Blue Ocean principles
- Evaluation of business strategy via Suitability, Acceptability, and Feasibility (SAF)
- Business model innovation and value chain optimization
- Targeting new market segments through academic and educational partnerships
Excerpt from the Book
2.1 Corporate Level Strategy
At the corporate level, Nintendo is following an Innovation Strategy that has played an important role in building its competitive advantage. Figure 1 shows an analysis of Nintendo’s innovation strategy through the framework of the Innovation Dilemma (Johnson et al., 2008). The analysis of Nintendo’s innovation strategy indicates that it used an innovative business model i.e. to position itself completely different from its competitors andquestioned how people actually want to play through its in depth customer understanding (Pontiskoski and Asakawa, 2009). Secondly, Nintendo used a technological push i.e. to target an untapped or incomplete market of gamers, as it had to convince the non-gamer adult to play on a Nintendo platform. Through its largest advertising campaign in its history, with costs over $200 million (Sliwinski, 2006), the company offered family-friendly and easy-to-use motion sensor technology.Thirdly, product innovation i.e. introduction of the Wii-mote and an infrared pointer was regarded as innovative product design (Farhoomand, 2009).
Summary of Chapters
1. Introduction: Presents Nintendo's market position and the strategic shift toward disruptive innovation with the release of the Wii console.
2. Strategy Analysis: Examines Nintendo’s corporate, product, and business-level strategies, specifically utilizing Ansoff's Matrix and the Blue Ocean Strategy framework.
3. Evaluation of current strategies: Assesses Nintendo's strategic performance using the SAF (Suitability, Acceptability, Feasibility) criteria and TOWS matrix analysis.
4. Evaluation of a Blue Ocean Strategy - A Purple Ocean?: Critically reflects on the sustainability of Nintendo's Blue Ocean approach and its convergence with traditional market competition.
5. Recommendations: Proposes actionable improvements for Nintendo’s future, including business model innovation and new partnerships within academia.
6. Conclusion: Summarizes the strategic effectiveness of Nintendo and reinforces the need for ongoing adaptation to maintain competitive advantage.
Keywords
Nintendo, Wii, Blue Ocean Strategy, Innovation Strategy, Business Model, Strategic Analysis, Ansoff’s Matrix, Corporate Strategy, Competitive Advantage, Market Penetration, Disruptive Innovation, Sustainability, Value Chain, Gaming Industry, Academia Partnerships
Frequently Asked Questions
What is the core focus of this strategic report?
The report focuses on analyzing Nintendo’s strategic move into the casual gaming market through the Wii console and evaluating the long-term effectiveness of its business model.
What are the primary strategic frameworks used?
The author applies several key frameworks, including Ansoff’s Matrix, the Blue Ocean Strategy (BOS), the Innovation Dilemma, the Resource-Based View (RBV), and the TOWS matrix.
What is the main research question or objective?
The objective is to present a comprehensive strategic evaluation for the executive board to determine if Nintendo’s current trajectory remains suitable, acceptable, and feasible in a competitive environment.
Which methodology does the author employ for the analysis?
The report utilizes qualitative analysis based on secondary sources, financial statement interpretation, and established strategic management theories to assess Nintendo's internal and external environment.
What topics are covered in the main section?
The main section covers an assessment of current strategies, a critique of the Blue Ocean approach, and specific recommendations regarding future business models, target segments, and network/value chain management.
Which keywords define this work?
Key terms include Nintendo, Blue Ocean Strategy, Business Model Innovation, Competitive Advantage, and Strategic Analysis.
Why does the author refer to a "Purple Ocean"?
The term "Purple Ocean" is used to describe the situation where Nintendo is not only creating new markets but also actively competing within traditional "red" markets using the leverage gained from their innovations.
What recommendations does the report suggest for future growth?
The report recommends continued business model innovation, reduced network restrictions for partners, and expanding into the education sector (academia) to create new blue ocean opportunities.
How does Nintendo's internal organization support its strategy?
The report highlights the "Iwata Asks" forum as a key example of organizational support, enabling dynamic capabilities and the absorptive capacity needed to foster constant innovation.
- Arbeit zitieren
- Corinna Jung (Autor:in), 2011, A strategy analysis of Nintendo - Executive summary, München, GRIN Verlag, https://www.hausarbeiten.de/document/183155
