NINTENDO: REVIVING A

COMPANY,
TRANSFORMING A MARKET

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070060023 070070007
history
Nintendo
 Was founded in 1889 , began as a playing cards
manufacturar

 Was one of the pioneers of video game consoles in

the early 1980s
 Contiuned as the market leader with its Super
Nintendo
 Sony introduced its Playstation and Playstation 2 and
Microsoft introduced the Xbox in the mid- 1990s
history

 Sold 20 million GameCubes while Sony PS2 sold

120 million
 Sony‟s PS3 and Microsoft Xbox 360 was so
advanced as looking at Nintendo
After a couple of years Nintendo
 Striked back with super Mario Bros.
 Its stock price tripled
 Its market capitalization exceeded that of Sony
Corporation during 2007
 Became the second largest corporation in Japon
after that Toyota Motor Company
Swot analyses
strenghts
 Enhancing virtual skills
 Revolutionary motion-sensing wireless
technology
 More inviting controllers
 Basic software
 Cost advantage than other firms
 A wireless internet connection
advantage
 Nostalgic advantage
 New applications
Swot analyses
weaknesses

 Easy games (Maybe boring for hard-

cores)
 Lacking of state-art clips and high-
definition lasers
 Strawny graphic features
 Ignoring hard- core gamers
 Basic Software
 Swot analyses
OPPORTUNITIES
 Only three big companies in the game console
sector
 Entering new markets
 First successful company in the industry

threats
 High competitive market
 More sophisticated hardwares
 Shorter life cycle
 More advanced technology in the industry
 MARKETING MIX( 4P STRATEGIES)
PRODUCTS
Game Consoles:
 NES (Nintendo Entertainment System)
 SNES (Super Nintendo Entertainment System)
 Nintendo 64
 Nintendo DS
 Gamecube
 Wii
 Gameboy
 Gameboy Color
 Gameboy Advance
 MARKETING MIX( 4P STRATEGIES)
PRODUCTS:
Games:
 Pokemon
 Legend of Zelda
 Mario
 Ice Climbers
 Captain Falcon
 Starfox
 MARKETING MIX( 4P STRATEGIES)
Place
 Produced in Japon
 Customers can download the games through
Wii Shop Channel
 Game publishers such as Electronic Arts Inc.
have put more resources for the Wii
 Independent shops are getting into action as
Nintendo‟s download channel
 MARKETING MIX( 4P STRATEGIES)
PRice
 Prices are very affordable to its rivals
 Sony most populer PS3 model was at the top
with $599
 Nintendo became low-price leader with $250
Promotion:
 Emphasized the family- friendly games
 Offers free games in its system
 High-speed internet that allows to play
certain online games against friends and
Corporate level strategy
 Mission Statement: Creating fun of playing for all ages
and every member of family by breaking gaming
boundries

 Business Objectives:
 Improving the profit and sales
 Enforcing Customer Relationship
 Increasing efficiency

 Marketing Objectives:
 Attracting different customers
 Better targeting and positioning
 Designing its products extremely virtual
 Business level strategy
• Because of the company is a single- business
company , business portfolio has one business.

Current- Business portfolio:

 The video game industry has grown tremendously

 Games are more complex and graphically intense
 Nintendo‟s products had low technologic features to
the rivals.

SBU:
 Strong value of innovation
 New market for families
 Improving “distructive technology”
 Cost reduction by eliminating features
 Business level strategy
Future Portfolio:
 Nintendo at the “Stars” stage in Boston-
Consulting Matrix
 It has been “diversification” with new markets
and new products as growth strategy
 It has offered low-cost products
and a line of differentiated products
QUESTION 1

Was nintendo just lucky, or does the Wii’s

success have strategic merit?

It was not only about luck, it contains strategic

merit subtantially because Nintendo creates
innovative new system that takes advantage of
new technologies and targets consumers of all
ages with Wii applications.
QUESTION 2
Has Nintendo put the “fad” question to
rest? State a case as to why the Wii is or is
not here to stay?

Because of fast growing it maybe seems like „fad‟

but it is not. We realize that Wii has met a
important part in virtual games as developing
motion-sense technology (Wii-mote vs.) and
breaking the boundaries of traditional game
consoles with new applications (Wii Shop
Channel, Wii Fit vs.). Wii also promising more fun
for every age. Therefore, Wii has attracted non-
traditional gamers.
QUESTION 3
In which stage of the product life cycle
is the Wii? Based on that stage, is
Nintendo employing good marketig mix
strategies?
• Rapidly rising sales (24 milion sales in first 18
months)
• Rising profits ( Revenues and profits were up by
73 percent and 67 percent respectively)
• Middle majority customers (at adopter
categorization)
shows that Wii is at „Maturity‟
stage.
QUESTION 3
In which stage of the product life cycle
is the Wii? Based on that stage, is
Nintendo employing good marketig mix
strategies?
- Prices beating rivals as price strategy
- Diversifing its models as product strategy are
successfully employed
- Appropriate promotion and distribituon
strategies must be developed.
QUESTION 4
Develop a strategy for the Wii’s next
product life cycle phase.
The company should continue to stay at maturity
stage. Because top profits and peak sales are
occured at this stage. It should build more
intensive distrubition channels.
QUESTION 4
Develop a strategy for the Wii’s next
product life cycle phase.

The products should be featured for attracting

new costomers.
The promotion workings are not sufficient. It
should focus on advertising as stressing brand
differences and benefits and sales promotion as
increasing to encourage brand switching.
QUESTION 5
Discuss the potential threats to NiNteNdo’s
future success. What will help Nintendo
avoid a premature decline for the Wii?

Potential threats are that there is a high- competitive market, the

games are being more sophisticated and life-cycles of the
products are shortening.

Nintendo was succesfull to produce extra-ordinary video games

and that made it top company but there is no guaranty to keep
this reign. Although Nintendo has a huge game number, these
are easy-play games and may cause a aridity. So Nintendo has
to add to its classic game styles as developing more serious
games.

Due to rapidly developing technology, the product‟s life cycles

have become more shorten.
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