Nintendo: reviving a company, transforming a market

Résumé du document

Nintendo was founded in 1889, and gained success in the early 1980s for its Nintendo Entertainment System, its Super Nintendo and its Nintendo64. In the mid-1990s however, Sony introduced the PlayStation, and Microsoft came up with the Xbox. In turn, Nintendo quickly lost its market shares to its competitors, but nevertheless fought for its survival, and reinvented itself by launching a revolutionary product called the Wii. The latter was a success and allowed Nintendo to become competitive again. How did Nintendo make its way from product loser to product leader?

Nintendo implemented a marketing strategy that led to an instant hit with demand surpassing its counterparts. But is this hit just a fad, or will Nintendo be able to keep its customers' loyalty in the long term? Its competitors are also trying to innovate in order to fight against Nintendo's wide expansion in the game market. Will Nintendo be able to face the competition and maintain its leadership position?

Extraits

[...] Until now, the main objective of the company was to invent a new technology. Their mission was a success. However, we think that now that this objective has been fulfilled, the company should try and focus on another goal in order to keep customers' interest. This new goal could be to focus more specifically on games. Their first step could be to turn their promotions toward games instead of only promoting the Wii as a product. The targeted market wouldn't change; Nintendo would still aim to the masses. [...]

[...] This allowed Nintendo to offer an affordable price for this device. Finally, the Wii's technologies will never be obsolete. Strategic Alternatives After analyzing the whole context, our team came up with a few strategic alternatives in order to solve Nintendo's problem statement. The first strategy that we came up with is focused on the product itself, in the way that they should try to improve it and derive it. Nintendo should keep the Wii as a basis, and constantly expand their product line going by this basis. [...]

[...] SWOT: 5 FORCES (PORTER). Launching growth Maturity decline Nintendo keeps on gaining market shares, but arrives to a striking point forcing Nintendo to find a new marketing approach. Customer Segmentation Nintendo's product is aimed to everyone, and this is why the Wii is so particular. The customer's segmentation is therefore kind of vague. IX- References www.commentçamarche.net www.nintendo-difference.com www.nintendo.com www.wii.com www.wiisworld.com http://marketing.blogs.ie.edu/archives/2007/09/nintendos_wii_a.php www.adage.com www.wikipedia.fr LeMonde.fr www.gamespot.com www.theconomist.com www.sony.com www.microsoft.com Gerry Johnson, K. S. (2008 1st impression). Exploring Corporate Strategy. Pearsons education. Pettitt, F. [...]

[...] Nintendo: reviving a company, transforming a market TABLE OF CONTENT EXECUTIVE SUMMARY P.3 II- PROBLEM STATEMENT P.4 III- EXTERNAL ANALYSIS P.4-7 - Macro environment - Micro Environment - Customers - 4Ps IV- SWOT ANALYSIS P.7-9 - Strengths - Weaknesses - Opportunities - Threats STRATEGIC ALTERNATIVES. P.10-11 VI- RECOMMENDATION. P.11-12 VII- IMPLEMENTATION P. 13-14 VIII- APPENDIX A. P.14-16 - SWOT - 5 forces of Porter - Market shares - Customer Segmentation IX- REFERENCES. P.17 EXECUTIVE SUMMARY. Nintendo was founded in 1889, and gained success in the early 1980s for its Nintendo Entertainment System, its Super Nintendo and its Nintendo64. [...]

[...] The prices should not change. The Wii and its games are famous for their features, but also for their accessible price. It is therefore important that Nintendo maintain these attractive prices. Also, they should keep working with their retailers, because making the product accessible in any kind of shop makes it easier to sell. Obviously Nintendo should run some market researches in order to see if this approach would actually work, or if the result is not worth the cost. [...]