Case Nintendo
1. After reading the articles and the case, what does "disruptive technology" mean to you?
What are the principles behind it? How can you determine whether a technology is disruptive or not?
Disruptive technology is an innovative technology providing a new set of attributes, which may not be valued and accepted by the mainstream customers but can make a faster performance improvement than the existing mainstream technologies. In doing so, it has the capability of creating its own market with a set of new customers.
The following can be considered as the principles of the disruptive technology:
1) It should have radical advances, which means you should come up with a new idea or a product with a new package of attributes that attract a new base of customers except the mainstream ones.
2) It has to grow faster than the growth speed of the existing technologies in order to invade the establishing market. It can totally change the establishing market structure and market share.
Determining if a technology is disruptive or not can be done by checking the following:
1) Mainstream customers will reject a disruptive technology.
2) The marketing and financial mangers may not support it since they want to maximize the profit in the current period, because a disruptive technology would require a concentrated effort and share the company’s budget.
3) The technical managers would support it as they can foresee the technical trends.
2. Analyze Nintendo's disruptive strategy in detail. What are the main features of this strategy that have made the Wii such an overwhelming success? Nintendo’s disruptive strategy was straightforward; to provide non-gamers gaming experience based on the real life. Below are the main features of its strategy:
1) New functions and revolutionized features
a) The newly designed controller for Wii was easy to set up and play.
b) Introduction of “Exergaming” changed the way people played games. It was an attractive medium for all the family
What are the principles behind it? How can you determine whether a technology is disruptive or not?
Disruptive technology is an innovative technology providing a new set of attributes, which may not be valued and accepted by the mainstream customers but can make a faster performance improvement than the existing mainstream technologies. In doing so, it has the capability of creating its own market with a set of new customers.
The following can be considered as the principles of the disruptive technology:
1) It should have radical advances, which means you should come up with a new idea or a product with a new package of attributes that attract a new base of customers except the mainstream ones.
2) It has to grow faster than the growth speed of the existing technologies in order to invade the establishing market. It can totally change the establishing market structure and market share.
Determining if a technology is disruptive or not can be done by checking the following:
1) Mainstream customers will reject a disruptive technology.
2) The marketing and financial mangers may not support it since they want to maximize the profit in the current period, because a disruptive technology would require a concentrated effort and share the company’s budget.
3) The technical managers would support it as they can foresee the technical trends.
2. Analyze Nintendo's disruptive strategy in detail. What are the main features of this strategy that have made the Wii such an overwhelming success? Nintendo’s disruptive strategy was straightforward; to provide non-gamers gaming experience based on the real life. Below are the main features of its strategy:
1) New functions and revolutionized features
a) The newly designed controller for Wii was easy to set up and play.
b) Introduction of “Exergaming” changed the way people played games. It was an attractive medium for all the family