Nintendo’s Innovative Resource Strategy

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Brief Synopsis of Nintendo Case Lynch (2012) asserts that it is necessary for an organization to carry out an analysis of its resources and capabilities as it help it in identifying the places where value can be added by the organization. This also helps the company in finding out ways to gain competitive advantage in the market. The given case on Nintendo showed that by 2005, Nintendo appeared to be heading towards an end as its rivals Microsoft and Sony has captured the market through Xbox 360 and PlayStation 3 respectively. In this scenario, Nintendo innovated Wii which changed the market scenario in 2007. The case showed that innovative new strategy by Nintendo with its Wii games machine has transformed the industry and revived the profitability of the company. Since the release of the Wii, Nintendo is the leader in the video game industry. By introducing a totally new, one of a kind console, Nintendo has set clearly its goal and objectives, i.e. to reach an unexplored market share by introducing new gaming experiences, and therefore being the leader over its two main competitors, Sony and Microsoft. The case thus highlights the need to take a resource based view of the capabilities of the company so that such resources can be exploited to generate higher value for the firm. The case study highlighted that the new game Wii introduced by the company had the ability to attract individuals considered non-gamers or casual gamers. The Wii was not as powerful or technologically advanced as the Xbox 360 and the PS3, but its success lies in its ability to provide a new means of playing video games. The innovative design of the Wii’s controller, which had built in motion sensors, created a whole new gaming experience for users - on... ... middle of paper ... ...ive Advantage," Journal of Management, 17 (1): 99-120. Hansen M., Nohria N., and Tierney T. (1999), “What’s your Strategy for Managing Knowledge?,” Harvard Business Review (March 1999), 106–16. Johnson, G., Scholes, K. & Whittington, R. (2008), Exploring Corporate Strategy: Text & Cases, 8th ed. Prentice Hall Kay, J. (1993), "The structure of strategy," Business Strategy Review, 4, 17-37 Lynch, R. (2012), Strategic Management, 6th Edition, FT Prentice Hall. Microsoft (2013), Company information, mission, vision and strategy, available online at http://www.microsoft.com/about/companyinformation/ourbusinesses/business.mspx, retrieved on December 10, 2013 Prahalad, C.K. and Hamel, G. (1990), The core competence of the corporation, Harvard Business Review, Vol.68 (3), 79–91. Warren, K (2008), Strategic Management Dynamics, John Wiley & Sons Ltd: Chichester

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