Documentos de Académico
Documentos de Profesional
Documentos de Cultura
3. Driving Forces
Strong Competition in technology among rivalry.
Nintendo cannot compete in technology with Sony and Microsoft; therefore they diversified into targeting more casual customer. (Start from Nintendos Game Cube failure).
It is making the industry more profitable since it targets more groups of customer. It also makes the competition more intense since it forces Mircrosoft and Sony to step down into the same target group.
Especially Sony and Microsoft, they launched console which is similar to Wii.
Sony : Playstation Move and Eyetoy Microsoft: Xbox Kinect
5. Strategy
Nintendo is using broad differentiation strategy as their generic competitive strategy. They are targeting the market of hardcore gamer, casual gamer and even someone who hasnt play game before. The price of Nintendo is relatively much lower as compare to Sony and Microsoft. Offensive: Blue Ocean Strategy to explore and create untapped elders/female and non hardcore gamer market. So they always try to be the first mover to beat out competitor in existing market. Defensive: Be more innovative than competitors since they are getting into this area. (Wii Fit)
2009
2.78 0.428 0.151
2008
2.71 0.465 0.153
2007
2.79 0.429 0.180
2006
5.42 0.192 0.193
2005
4.59 0.228 0.169
8. SWOT
Strength
Strong brand First Mover (Creativity) Internal game developer
Weakness
Technology disadvantage Lack of blockbuster games
Opportunities
Changing people lifestyle (health, fit, fun = Wii Fit) E-commerce boom (Online store)
Threat
Competitors targeting casual game players Recession (Less demand, rising logistic cost)
8. SWOT (continue)
Analysis:
Nintendos performance is not attractive. Nintendos main competitive advantage is its creativity. Technology barrier makes Nintendos approach is not sustainable. Exhausting endeavor without assurance Using creativity to outrun competitor is susceptible to competitors copy and development effort
10. Recommendation
Invest more in R&D to create a proprietary and superior technology.
Build stronger partnership with game-producer companies. Continue to approach new gaming experience.