from the great Atari to the all loved and hated Microsoft Xbox the revolutionary evolution from gaming arcades are having one in your home and one on your hand. Nintendo has been in this game for quite some time but was never seen as a threat by any of the major players in the industry , nor was it taken by any of the gamer is to be a serious console it lacked something that is essential for the survival of products of its nature but luck and a few good decision has brought in Nintendo where it is today the question that is to be answered was going to happen in Nintendo in the next 2 to 10 years the strategy to develop to its survival in the long run and regains profits and to be taken as a serious player in the market
The body of argument
1)an analysis of the strategic problems Nintendo is currently facing Nintendo is a company that makes gaining console is not taken as seriously by the major players in the market which are the present-day the Microsoft’s Xbox 360 and Sony’s PlayStation three further to the two in the market the Internet and financial times is littered with articles of apple it coming out with the new product and even more serious problem is being faced by Nintendo by one of the major revolutionary gaming console that has shown its true potential- Ouya Android Gaming Console which will be the future since there are more android devices than any other on the planet the competition faced by Nintendo now and in the future will be evermore increasing.
Nintendo has strategic problem with the way people perceive Nintendo is no more than a gaming console for people who don’t take gaming seriously or in other words hard core gamers, or it is just for kids this problem prevents people of serious gaming nature in the future to even try Nintendo as a worthy candidate the perception of Nintendo’s image not being a serious gaming company is a threat to its very existence in the future Nintendo as enormous problem it primarily relies on its ability to make the hardware and is lacks ability to make software and depends on third parties to make them this leads to serious gaps in Nintendo’s strategy a person buying a gaming console as to wait for the console first and wait for the waves of games unlike its competitors where the games already along with the console or the most important factor of Microsoft’s and Sony’s ability to have a key lease on the propriety game that has made a gaming consoles payments which Nintendo lacks Nintendo’s new gaming console the Nintendo Wii u seems to have been failure it in terms of its ability to sell during the first weeks it Nintendo sold 4 million units of Wii u but its predecessor the Wii had sold 6 million units in the first six days in 2006 the fact is Wii U is not doing as well as it was expected still contrary to all the hype and promotion Nintendo did .early in the 2007 Nintendo’s Wii was leading Microsoft’s Xbox 360 in sales around the world because of the fact of its price difference and Sony was struggling with his PlayStation three mark the Nintendo Wii u has been priced way about the price of both the Xbox 360 and the PlayStation three with seems to be a strategic problem with the pricing
Department of Nintendo
How the strategy taps into internal and/or external sources of competitive advantage The perfect analysis that can be performed to assess Nintendo’s future would be Porter’s five forces analysis and blue ocean analysis rather than specifically focusing on Nintendo’s product line Nintendo Wii u since the strategy is for Nintendo itself in a long run bargaining power of the consumers can be seen to a great extent which helped Nintendo in the past scenario where Nintendo outsold Microsoft’s and Sony’s and the present scenario consumer has have enough bargaining power which adversely affects the sale of Nintendo Wii U threat of new entrants there was an active competition which can be seen in the immediate future of the Nintendo with the announcer ouya the android gaming console which is available in the near future and at 1/8 of the cost of Nintendo and finally the giant of the echnological industry Apple has been rumored to have a gaming console in its pipeline within the next quarter to be released which would be a huge blow on sale for the Nintendo. And just today BBCCHIP: NVidia, Out Of Nowhere, Announces a New Gaming Handheld
Threat of substitute products in frontier of technology there is a convergence of almost all electronic devices and they become substitutes to an extent that one gadget or one device can be substituted for almost all purposes this ability extends to the fact that today’s gaming sector has seen and development that has never existed before for games on tablets phones computers handheld devices and any electronic device that get per processor and a screener on .the market by itself has expanded Nintendo has failed to seize any particular field. Unlike Sony strategy which is called the PlayStation certified devices which allows Sony proprietary lease on even substituting products that it on the company that creates
Bargaining power of suppliers with Foxconn being a major supplier of parts and its manufacturing processes Nintendo has an ability to cap the bargaining power of the suppliers since the manufacturing is done by third-party contract
Competitive rival within the industry the existing of dominating Microsoft’s and Sony’s gaming consoles is a constant rival for the tender Its strategy in the long run unlike Nintendo Microsoft and Sony as an ability to generate revenue from other streams of investment and has a number of processes to tap into Nintendo on the other hand is only known for making gaming console the analysis of porters five forces analysis reveals that Nintendo in a specific to manufacturing gaming consoles reveals that the profit margin for Nintendo in the near future when compared to its past being the giant it was seems hard to accomplish, now to a very great extent competition and new competition to overthrow Nintendo from the market from being one of the major players
Blue Ocean analysis
Nintendo found the blue Ocean in the late 1980s by analyzing that there is a market for the handheld device which it later branded “the Game Boy “but today the motion has gone out of market it needs to find a new blue Ocean Nintendo has shown its ability in the past to create a value proposition for as consumers by creating a product line that existed before rather than playing the game of pricing policy. Nintendo’s handheld product line seems to be at the far end of the product life-cycle even after Nintendo’s ability to constantly re-innovate the product.
But the present scenario demands Nintendo to find a new blue Ocean. Nintendo has released more handheld device when compared to its module system with seems to be the way things are being defined in the market Sony was the only company that competed with Nintendo in the handheld device market but Sony only launched very few devices when compared to Nintendo. The PlayStation vita was launched to rival Nintendo 3 DS, the market for handheld devices become a red market Nintendo has to find new Blue Ocean in order to stay in the market.
The strategic choices you recommend
1 There is no possible future in the market for Nintendo in the field of handheld gaming devices this market is overcrowded and cutthroat so smooth exit from this particular field of its product line or reduction of investment in this particular field would prevent further losses
2 consumers are very price sensitive creating product and pricing in above way about the others its price does not create demand in any strategic way. 3 product lines should be classified by the use of technology and not by limiting memory of the modules and differentiation should be on the basis of technological improvement rather than how much memory money can buy
4 flagship/proprietary game needs to be developed by Nintendo in the very near future in order to stop depending on third parties to manufacture the software and software related aids
5 a strategic alliance or acquisition of the company that makes games would give the edge that very much lacks when compared those competitors an
example and acquisition of ubisoft or electronic arts would prevent customers being frustrated having to wait for the games
6 blue ocean strategy when comes to this particular field is left to the imagination of the Nintendo from virtual gaming, online, three-dimensional gaming, motion sensor gaming, multi-gaming the ability to create a brand-new blue ocean and expanding the field for as consumers as well as Nintendo as a market leader is vital in order for the survival of Nintendo
7 understanding the core competence which is his ability to manufacture great devices with specs with relevance to hard ware are important
8 a strategic marketing campaign to change that Nintendo is meant for kids and not for hard-core gamers this change in image would leads to tap the potential customer base the Nintendo previously ignored and a comprehensive study of understanding hard-core gamers is necessary before the strategic marketing
What is needed for a successful implementation of the strategy?
many companies have the ability to understand strategy and how it works but many of them failed to implement them in the necessary way it this is the difference between a company that is in flux period that files for bankruptcy and the minority of companies which come out from the flux successfully understanding what Nintendo is a company stands for and the vision and the market position it wants to take in the near future is one of the major things that are needed for implementing strategy the transforming change will have to come from dumping of the product line which does not make any profit and has no foreseeable future, creating a brand-new product line which represents a new vision of Nintendo
Here are the top 10 failures of Nintendo