Phase 1 Report: Strategic Position Analysis Industry Nintendo of America Organisation Name Organisation Contact Name www.nintendo.com Website URL Email Address 4820 150th Ave. Northeast Address Redmond City WA State / Province 98052 Zip / Postal Code Individual Organisation Type Video Gaming Industry UNITED STATES Country Nintendo of America Inc.‚ established in 1980‚ is a subsidiary of Nintendo Co. of Japan. They have been the worldwide leader in the creation of interactive
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and Nintendo. Buyer Power The bargaining power of buyers is high because there are many options with very low switching costs. Substitutes Low substitute power because they are not very similar (like TV or other entertainment device) and don’t fulfill the same exact purpose. Sony has few competitors due to high barriers-to-entry and startup costs but buyers and suppliers (game developers) have high bargaining power and low switching costs. Sony should target a new market as Nintendo did
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Responding to the Wii Group Case Writeup BUSMHR 4490 In the Harvard Business Review case Responding to the Wii‚ Kazuo Hirai was faced with an interesting dilemma. Hirai‚ the chief executive of Sony Computer Entertainment Inc. faced pressure due to Sony’s Playstation 3 video game console losing market share to the Nintendo Wii. Hirai faced a major business decision in deciding how Sony should respond to the cheaper‚ more interactive‚ family oriented
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Wii Console 1. The demand for Wii console will be relative elastic. As from the passage‚ it mention that “Nintendo announced its first price drops for the console. In Japan‚ the price dropped from ¥25‚000 to ¥20‚000 and they sold more than three million Wii consoles also ending 9 months of declining sales”. This shows that that demand for Wii console is elastic as people responded to the price drop and thus they demanded more which also help Wii console to earn back their losses. Also another
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Responding to the Wii Introduction Kazuo Hirai‚ the chief executive of Sony Computer Entertainment Inc. (SCEI) has encountered two large rivals in the video game industry this year. Nintendo and Microsoft have released advanced video game consoles that have left Sony sales behind. Nintendo especially‚ has broken the status quo for marketing in the video game industry by dramatically expanding its target market from 18-34 year-olds to 9-65 year-olds both male and female with its new video game
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Responding to the Wii Executive summary: Given the current market scenario‚ Sony will have to fight on both fronts. The Wii has unlocked a new segment of the market. Sony should adapt its strategy to address this new market. But Sony must not lose sight of the big picture‚ to win the long term race for the “center of the living room”. Sony should leverage its relation with game developers to introduce simpler games for the casual gamer. It has to keep targeting the hardcore gamer and it must continue
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How did Nintendo successfully re-created the home video game business following the Atari-era boom and bust? Yamauchi was working on a new gaming console (the Famicom) that would be cheaper‚ but at the same time having better graphics and faster action than the competition. They started trying to replicate the “feel” of the Nintendo arcade games however on a less powerful version that would be suitable for home use. They also had a security chip included in the system‚ so only Nintendo approved
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1. How attractive was the videogame console industry in 1985 (when Nintendo was the volume leader)? What did Nintendo do to position itself relative to the 6 forces?” * Not very attractive; home video game market ended in 1983 because of the saturation of low quality games developed by third party game developers for the Atari System. The games were uninspiring or unattractive. * Domino effect: software houses collapsed because they had to reduce the price of their games‚ making the
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strategy towards game developers Nintendo serves as a good example of a firm that has managed to capture a great deal of value created by other players in the market‚ among others by leveraging the value created in the compliments market. The company mainly signed licensing agreements with outside programmers for development of games compatible with their hardware system. But by still keeping a small share of the game software development in-house (10% in the U.S)‚ Nintendo basically made it known to game
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entertainment industry has grown remarkably quickly in recent years. Since 2001‚ the market has been dominated by three major players: Sony‚ Microsoft‚ and Nintendo. Of these‚ Nintendo had the smallest market share‚ even though the company had historically dominated the market. In 2004‚ faced with strong competition from larger and wealthier rivals‚ Nintendo had to come up with an innovative strategy to maintain profitability. At that time‚ the optimal strategy was differentiation into a neglected segment
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