Nintendo Wii Case Study
Wii – Nintendo’s Video Game Revolution
Problem Statement:
Nintendo’s George Harrison needs a solution to deal with chronic product shortages when unexpected demand exceeds supply despite the increase in manufacturing capacity. Preventing product shortages would also eliminate an opportunity for competitors to increase market share in a highly competitive electronic entertainment industry.
Objective:
To develop a product planning strategy to effectively deal with the 2007 holiday season and demand going forward to reduce product shortages.
To develop a strategy that sees Nintendo maintain its market leader status once it is in the market maturity stage
Background:
Nintendo has been in existence since 1889, starting with cards and then expanding into toys and games
Nintendo is the leading video game maker in the United States
Nintendo has had phenomenal success with their recent launches of Wii and DS In 1992, Nintendo had captured 80% share of the market for video games
Forecast:1
Nintendo is forecasted to sell 14,000,000 hardware units of Wii during the next year, significantly up from their previous year in which they sold 5,840,000 units
Nintendo is also projected to sell 55,000,000 software units, again significantly up from their previous year in which they sold 28,840,000 units
Competitors such as Sony and Microsoft are not facing any shortage issues and are aggressively cutting down their console prices to increase their respective market share
Situation Analysis:
S.W.O.T Analysis:
Strengths:
Nintendo is a well known and established brand with an excellent reputation
Had phenomenal success with recent product launches (DS and Wii)
Product priced lower than the competition
Nintendo games are easy to learn, but hard to master
Nintendo has the first motion-sensing controller in the video game industry
Nintendo Wii, with its motion-sensing controller can help improve fitness
Problem Statement:
Nintendo’s George Harrison needs a solution to deal with chronic product shortages when unexpected demand exceeds supply despite the increase in manufacturing capacity. Preventing product shortages would also eliminate an opportunity for competitors to increase market share in a highly competitive electronic entertainment industry.
Objective:
To develop a product planning strategy to effectively deal with the 2007 holiday season and demand going forward to reduce product shortages.
To develop a strategy that sees Nintendo maintain its market leader status once it is in the market maturity stage
Background:
Nintendo has been in existence since 1889, starting with cards and then expanding into toys and games
Nintendo is the leading video game maker in the United States
Nintendo has had phenomenal success with their recent launches of Wii and DS In 1992, Nintendo had captured 80% share of the market for video games
Forecast:1
Nintendo is forecasted to sell 14,000,000 hardware units of Wii during the next year, significantly up from their previous year in which they sold 5,840,000 units
Nintendo is also projected to sell 55,000,000 software units, again significantly up from their previous year in which they sold 28,840,000 units
Competitors such as Sony and Microsoft are not facing any shortage issues and are aggressively cutting down their console prices to increase their respective market share
Situation Analysis:
S.W.O.T Analysis:
Strengths:
Nintendo is a well known and established brand with an excellent reputation
Had phenomenal success with recent product launches (DS and Wii)
Product priced lower than the competition
Nintendo games are easy to learn, but hard to master
Nintendo has the first motion-sensing controller in the video game industry
Nintendo Wii, with its motion-sensing controller can help improve fitness