Internal Analysis sony
Internal Company Analysis
Nintendo’s Strategy in 2009: The Ongoing Battle with Microsoft and Sony
Fatima Badia Alkhouri
201003615
Zayed University
BUS-400-003
Strategic Management
Dr. Hanko K. Zeitzmann
May 5, 2014
Nintendo, which is one of the video game industry competitors, have been the worldwide leader in creating the entertainment games. Nintendo’s video games have been sold everywhere in the world and they became in the list of the worlds best selling. The latest gaming console system, which is considered as a revolutionary video game console, was the Wii. It attracted a large number of people from different ages, which resulted in a large number of sales and profit. Unfortunately, nowadays the demand of the video games slightly decreased because of the new games and devices introduced recently. This internal analysis of Nintendo conducts its competitive strength assessment versus its competitors and analyzes the firm using the value chain analysis tool and the VRIO framework.
Nintendo’s Value Chain Analysis (Primary Activities & Support Activities)
Supply Chain Management
Nintendo, which is one of the largest video game companies, follows several steps and goes through different stages to create a value for its customers. To produce a video game controller, Nintendo outsourced the key components, which are needed for the production such as controller chips, from a number of different manufacturers. Nintendo formed partnerships with those manufacturers to supply them with the required components. The process of outsourcing the components from different manufacturers is considered as a good practice and cost effective because it reduces the production costs that Nintendo might have if they produced the components by themselves. As it is mentioned in the case, “Nintendo is not a technology company – it is a toy company” so, by outsourcing Nintendo also ensures the quality of the product that are going to be produced.
Designing and
Nintendo’s Strategy in 2009: The Ongoing Battle with Microsoft and Sony
Fatima Badia Alkhouri
201003615
Zayed University
BUS-400-003
Strategic Management
Dr. Hanko K. Zeitzmann
May 5, 2014
Nintendo, which is one of the video game industry competitors, have been the worldwide leader in creating the entertainment games. Nintendo’s video games have been sold everywhere in the world and they became in the list of the worlds best selling. The latest gaming console system, which is considered as a revolutionary video game console, was the Wii. It attracted a large number of people from different ages, which resulted in a large number of sales and profit. Unfortunately, nowadays the demand of the video games slightly decreased because of the new games and devices introduced recently. This internal analysis of Nintendo conducts its competitive strength assessment versus its competitors and analyzes the firm using the value chain analysis tool and the VRIO framework.
Nintendo’s Value Chain Analysis (Primary Activities & Support Activities)
Supply Chain Management
Nintendo, which is one of the largest video game companies, follows several steps and goes through different stages to create a value for its customers. To produce a video game controller, Nintendo outsourced the key components, which are needed for the production such as controller chips, from a number of different manufacturers. Nintendo formed partnerships with those manufacturers to supply them with the required components. The process of outsourcing the components from different manufacturers is considered as a good practice and cost effective because it reduces the production costs that Nintendo might have if they produced the components by themselves. As it is mentioned in the case, “Nintendo is not a technology company – it is a toy company” so, by outsourcing Nintendo also ensures the quality of the product that are going to be produced.
Designing and
References: Questions about Xbox 360 Repair, (2014), Xbox Support, Retrieved from http://support.xbox.com/en-US/xbox-360/repair/warranty-faq Warranties, (2014), PlayStation, http://us.playstation.com/support/warranties/ps3/ Warranty Coverage (USA and Canada), (2014), Nintendo, Retrieved from https://www.nintendo.com/consumer/manuals/warrantyinfo.jsp