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Strategic Analysis for Nintendo Co Essay Sample

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Strategic Analysis for Nintendo Co Essay Sample

Nintendo deals in providing video games services and interactive entertainment to its customers and these two serve as the major competitive characteristics of the company’s external environment. Like all the other companies, Nintendo also has competitors that the company has to foresee and plan strategies according to the moves of the competitors to make sure they remain to the top. The industry in which Nintendo falls has become a part of global market since the time it was originated and the target customers of this industry can be found worldwide.

In the beginning this industry was mainly for the children but now there is a wider demographic that it can serve. Either the games are played by the customers in the United States or in Japan or either the customers belong to the age group falling between 8 to 45 years, the value gained by the customers is the same and the industry players have come up with various innovations for the customers but globalization has also give birth to certain challenges for this industry. (Hunger & Wheelen, 2002).

Software, consoles, accessories and online subscriptions are the four major products of the video games industry and the activities in this industry include development, publishing, manufacturing and retailing games and accessories and from this games and software take the lead since it comprises of 68% of the market and is followed by sales of consoles. Since the revenues are mainly made by the sales of retail games, the focus of the entire industry is on this. Although there are many players in the industry such as Sony, Microsoft and Electronics Art Inc, Nintendo is ranked as the major player in the global game industry.

The main customers are the retailers and the consumers and games are also purchased by big retailers such as Kmart, Wal-Mart, Target and Toys R Us. Internal environment As Nintendo is known as the market leader in the gaming industry, it is mainly because some of the characteristics of the company’s internal environment affect its competitive success. The competitors of Nintendo are Sony, Microsoft and Electronics Art Inc. Sony introduced PlayStation console and enjoyed huge sales while Microsoft introduced Xbox in 2001 in order to compete with Sony’s PlayStation.

Organizational structure Nintendo has very capable employees who come up with new ideas to introduce new games and this is mainly because of the organizational structure of the company. Autocratic style of management is followed by Nintendo. The strategic success of Nintendo is supported by the company itself as the human resource management of Nintendo designs such strategies that give empowerment to the employees and this allows them to think for new ideas and towards new areas.

The employees at Nintendo are encouraged to come up with innovative ideas and they are also worked upon if they seem feasible to the company. (Docstoc, 2009). Vision, mission and objectives Every company has a vision and a mission as the former helps the company define what it would like to be in the future while the mission guides the company in achieving the goals. Vision The corporate vision of the company is commitment towards employees, devotion to entertainment business and to expand gaming audience. Mission and objectives

Nintendo is the market leader in the gaming industry and the company is strongly committed and it aims to produce and to market the best products and support service for these products. The company believes in providing not just providing high quality products but to give royal treatment to every customer and to treat every customer with attention, consideration and respect. For this, the company closely listens to the customers as this helps them in bringing improvements in the products and services they wish to sell. (Nintendo, n. d. ).

Moreover, Nintendo is also committed towards their employees and the company provides such an atmosphere to the employees that enable them to work together as a team. Nintendo has very talented employees who are committed and enthusiastic to produce high quality products as well as services. The same respect that is given to the customers is given to the employees as well because the employees are considered as the major assets of the company who can drive Nintendo towards success. Nintendo has also defined its long term and short term goals that are mentioned below.

Long term goals of Nintendo Nintendo aims to open up a technological segment to come up with future developments such as holography and brain wave technologies and socio-cultural segment to prove that family entertainment is the fastest growing segment. Short term goals of Nintendo Nintendo aims to expand demographics as this would increase their target market and would further boost their sales. Moreover, the company also aims to increase video game technology in the future in order to attract more consumers towards their offerings.

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