Problem Statement
Nintendo is losing its market share in the market due to inadequate business strategy and the threat of piracydue to which thesales are decreasing and revenues are reducing.
Internal Analysis
SWOT Analysis
Strengths
1- Nintendo has the vast knowledge and expertise of the gaming industry. Since it started its operation in the initial time and developed a strongmarket base, ithas given the company the ability to develop the market expertise to tap and sync with the gaming industry.
2- The companyhasstrongdistribution and supplier relationship over the globe. It is due toits strong market operationsand long stable position in the market.
3- Nintendo is one of thethree most “big3” company thathas taken strong hold of the market, amplifying the market barriers to entry.
4- Nintendo is reliant on one typeof industry particularly the gaming console industry,this reduces its risk of failure in too many industries at the sametimeitalso held firm position in the market.
5- The company has a strong reputation and brand image of being innovative in themarket.This givescompany the strength to try and offer a new product in themarket without the risk of low acceptance or customer trust.
Nintend Game on Harvard Case Solution & Analysis
Weakness
1- The company failed to leverage its knowledgeandmarket expertise in developing a diverse product line.This developed its overrelianceon thegamingconsoleindustryandrestricted its revenues
2- The company has no backward integration, whichmakes it to rely on the suppliers like Sony and Philips for Technological support
3- Lastly, the company has inadequate marketing and advertisementeffort to make its new products successful in the market. This has made the products of Nintendo quite weak in positioning inthemarket.
4- The extended piracy in Italy andSpain are notunderthe control of the company,cutting the sales margins andrevenuesin the particular regions.
5- Opportunities
1- The companyhastheopportunity to tap the market through mobile game application.
2- It can tap the Asian markets by offering its gamingconsoles designed at a regionallevel. This will sync with thecustomerbehavioraland customer psychology easily, making the geographical and proffered game.
3- The company can develop the backward andforward integration of the businessprocess, allowing it to Tap and capture the market share moreeffectively.
4- The company can extend the license with Disney to add a new product line in the company’s portfolio.
Threat
1- The risingcompetitionfrom Sony and Microsoft are positing thethreat of shrinking profits andmarket sharein the market.
2- The limitedproduct linewill keep the Nintendo lag behindthecompetitionand may obsolete the technology and product sometime later in the future.
3- The video game industryis also a threat to thecompany.Since the customer demandis always changing andthe dynamics of the industry changes frequently, thecompanyoperating in the domain requires highexpertise andresources to cope up with the market.
Value Chain
In-house Operation
The Nintendo produces all of its gaming products in Japan- theparent country.This allows the companytomaintain the quality and value proposition of the overall product line.Though the major market for Nintendo is US, however, in order to main the consistency and quality of the product, the companyprepares the products in house...........
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