Nintendo Case Study

Marketing class Nintendo case study with related topic of new product development

1. NINTENDO: REVIVING A COMPANY, TRANSFORMING A MARKET özge duman 070060023 ozan türkarslan 070070007

2. history Nintendo W as founded in 1889 , began as a playing cards manufacturar Was one of the pioneers of video game consoles in the early 1980s Contiuned as the market leader with its Super Nintendo Sony introduced its Playstation and Playstation 2 and Microsoft introduced the Xbox in the mid - 1990s Not kept up more technologically advanced rivals

3. history Sold 20 million GameCubes while Sony PS2 sold 120 million Sony’s PS3 and Microsoft Xbox 360 was so advanced as looking at Nintendo After a couple of years Nintendo Striked back with super Mario Bros . Its stock price tripled Its market capitalization exceeded that of S ony Corporation during 2007 Became the second largest corporation in Japon after that Toyota Motor Company

4. Swot analyses strenghts Enhancing virtual skills Revolutionary motion - sensing wireless technology More inviting controllers Basic software Cost advantage than other firms A wireless internet connection advantage Nostalgic advantage New applications ( Wii Shop Channel , Wii Fit)

5. Swot analyses weaknesses Easy games (Maybe boring for hard-cores) Lacking of state-art clips and high - definition lasers Strawny graphic features Ignoring hard- core gamers Basic Software

6. Swot analyses OPPORTUNITIES Only three big companies in the game console sector Entering new markets First successful company in the industry threats High competitive market More sophisticated hardwares Shorter life cycle More advanced technology in the industry

7. MARKETING MIX( 4P STRATEGIES) PRODUCTS Game Consoles : NES ( Nintendo Entertainment System ) SNES ( Super Nintendo Entertainment System ) Nintendo 64 Nintendo DS Gamecube Wii Gameboy Gameboy Color Gameboy Advance

8. MARKETING MIX( 4P STRATEGIES) PRODUCTS: Games : Pokemon Legend of Zelda Mario I ce Climbers Captain Falcon Starfox

9. MARKETING MIX( 4P STRATEGIES) Place Produced in Japon Customers can download the games through Wii Shop Channel Game publishers such as Electronic Arts Inc . have put more resources for the Wii Independent shops are getting into action as Nintendo’s download channel

10. MARKETING MIX( 4P STRATEGIES) PRice Prices are very affordable to its rivals Sony most populer PS3 model was at the top with $599 Nintendo became low - price leader with $250 Promotion : Emphasized the family - friendly games Offers free games in its system H igh -speed internet that allows to play certain online games against friends and others

11. Corporate level strategy Mission Statement : Creating fun of playing for all ages and every member of family by breaking gaming boundries Business Objectives : Improving the profit and sales Enforcing Customer Relationship Increasing efficiency Marketing Objectives : Attracting different customers Better targeting and positioning Designing its products extremely virtual

12. Business level strategy Because of the company is a single - business company , business portfolio has one business . Current - Business portfolio : The video game industry has grown tremendously G ames are more complex and graphically i ntense Nintendo’s products had low technologic features to the rivals . SBU: Strong value of innovation New market for families Improving “ distructive technology ” Cost reduction by eliminating features

13. Business level strategy Future Portfolio : Nintendo at the “Stars” stage in Boston- Consulting Matrix It has been “ diversification ” with new markets and new products as growth strategy It has offered low - cost products and a line of differentiated products

14. QUESTION 1 Was nintendo just lucky , or does the Wii’s success have strategic merit ? It was not only about luck , it contains strategic merit subtantially because Nintendo creates innovative new system that takes advantage of new technologies and targets consumers of all ages with Wii applications .

15. QUESTION 2 Has Nintendo put the “ fad ” question to rest? State a case as to why the Wii is or is not here to stay ? Because of fast growing it maybe seems like ‘ fad ’ but it is not. We realize that W ii has met a important part in virtual games as developing motion -sense technology (Wii- mote vs.) and breaking the boundaries of traditional game consoles with new applications (Wii Shop Channel, Wii Fit vs.). Wii also promising more fun for every age . Therefore , Wii has attracted non - traditional gamers .

16. QUESTION 3 In which stage of the product life cycle is the Wii ? Based on that stage , is Nintendo employing good marketig mix strategies ? Rapidly rising sales (24 milion sales in first 18 months ) Rising profits ( Revenues and profits were up by 73 percent and 67 percent respectively ) Middle majority customers (at adopter categorization ) shows that Wii is at ‘ Maturity ’ stage .

17. QUESTION 3 In which stage of the product life cycle is the Wii ? Based on that stage , is Nintendo employing good marketig mix strategies ? - Prices beating rivals as price strategy - Diversifing its models as product strategy are successfully employed - Appropriate promotion and distribituon strategies must be developed .

18. QUESTION 4 Develop a strategy for the Wii’s next product life cycle phase . The company should continue to stay at maturity stage . Because top profits and peak sales are occured at this stage . It should build more intensive distrubition channels .

19. QUESTION 4 Develop a strategy for the Wii’s next product life cycle phase . The products should be featured for attracting new costomers . The promotion workings are not sufficient . It should focus on advertising as s tress ing brand differences and benefits and sales promotion as i ncreas ing to encourage brand switching .

20. QUESTION 5 Discuss the potential threats to Nintendo’s future success . What will help Nintendo avoid a premature decline for the Wii ? Potential threats are that there is a high - competitive market, the games are being more sophisticated and life- cycles of the products are shortening . Nintendo was succesfull to produce extra - ordinary video games and that made it top company but there is no guaranty to keep this reign . Although Nintendo has a huge game number , these are easy - play games and may cause a aridity . So Nintendo has to add to its classic game styles as developing more serious games . Due to rapidly developing technology , the product’s life cycles have become more shorten .

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