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Business Analysis on Nintendo

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Business Analysis on Nintendo
History/Timeline:

1977- Introduced a home video game system in Japan
1978- Sold coin-operated games
1981- Donkey Kong developed (major success)
1985- Super Mario Brothers developed Initiated a licensing program with six retail companies Started selling Nintendo systems in New York
1988- Sales reached 7 million; licensed to 31 American software companies
1990- Nintendo had 90% of market share worldwide
1991- Increased to 100 licensees; rescinded its exclusivity requirements 1992- Nintendo had 40% market share (Sega with 60%) Left alliance they had with Sony
1996- Launched Nintendo 64 in Japan and US (had 3D capabilities) Nintendo had 41% market share (Playstation with 49%)
2001- Gamecube introduced (CD’s and wireless controllers)
2002- Cut prices along with competitiors
2004- Launched BrainAge
2006- Launched Wii

Strengths:
• Strong position in all major markets
• Lower priced/cheaper games
• Innovative design/Interactive games
• Recognizable games and variety of games
• Market strategy

Weaknesses:
• Processing Power (compared to Xbox or Sony)
• Graphics (compared to Xbox or Sony)
• Not adaptable to all games
• Higher investment due to numerous accessories

Opportunities:
• Moving into more markets (i.e. schools)
• Eliminating competition
• Updating technology/Constant innovations
• Moving into a more markets
Threats:
• Potential New Entrants (competitors creating similar systems)
• Substitute Products: Board games, TV, Internet, iPods, Books, Sports, PC games
• PS3 combined gaming system with BlueRay Player

Analyze findings:

After thorough comparison of Nintendo’s strengths, weaknesses, opportunities, and threats, we believe that they currently hold a strong competitive position. Their differentiation strategy sets them apart from competitors, and continuing to grow and develop will keep them ahead of any potential substitutes.

Business Level Strategy:

Who are the customers? → Individual consumers
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