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SWOT analysis in strategic management
Industry analysis using porters five forces
SWOT analysis of companies
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Recommended: SWOT analysis in strategic management
External Analysis
In external analysis we use four different theories which are PESTEL, Porter’s 5 forces, SWOT and Task environment.
But according to me if we use only Porters 5 forces to analyse the Nintendo Wii situation we will get better results because Porter’s 5 forces help to provide the clear picture of where power lies in Nintendo wii business situation.
In our 1 and 2 assessment we didn’t give much importance to porters five forces. But because of the reasons given below tell us that competitive rivalry, bargaining power of customers and threat of new entrants is the important areas for Nintendo wii.
Why??
• The threat of new entrants in the console video games industry is medium. If new game company comes into the market with
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Nintendo wii’s two major competitors, Microsoft and Sony, offer close direct substitutes to Nintendo 's console products. Indirect substitutes to Nintendo video games also exist on the PC and Mac platforms. The console video games industry is currently an oligopoly, with multiple major players all producing effective substitutes. Nintendo is positioned as a price and innovation leader, but other companies are quick to mimic Nintendo innovations (such as with the Xbox Kinect and PlayStation Move motion-control products) and slash prices to encourage substitution in their …show more content…
We did principle concentrate on Business level procedure which is best for Nintendo 's wii in light of the fact that in business-level technique, the client is the establishment. To effectively execute any technique, the business must comprehend the client, including data about sex, age, values, utilization examples and topography. Envisioning the requirements of the client and noting these necessities can give a business favourable position over the opposition. Organizations can progress in the direction of creating so as to fulfil clients methodologies that have worth to the association and the client. An effective technique gives the business cosy information about clients and contenders. This learning can prompt more noteworthy income for the
It is important to evaluate the ins and outs of a company to provide valuable information on the standings and future standings of the company. It also provides insight to develop strategies for long-term growth and shows potential threats that may hinder the bottom line. Strengths The strength portion of the SWOT analysis shows the internal environment, which are the controllable components of the firm that give a competitive advantage. This allows them to purchase high volume items for a lower cost.
Nintendo's success in the home console arena can also be attributed to the rigidity of the gaming industry and culture within which its two main competitors, Sony and Microsoft, adhered themselves. Traditionally, the norm was for new home console systems to be marketed primarily based on improved audiovisual capabilities. Indeed, the original PlayStation was a huge win for Sony, and to the detriment of Nintendo, in large part because of its more lifelike 3D graphics. Note that Nintendo was no different with earlier iterations of its systems, though perhaps to a lesser extent than its competitors. However, with this specific generation, namely against the release of the PlayStation 3 and the Xbox 360, both of which touted high definition capabilities, the Wii was unmistakably the sub performer in terms of graphics. Its competitors had no choice but to follow the dominant ideology, which...
The value chain analysis can be examined as to whether they provide opportunities for differentiation or cost reduction. According to Porter, the value chain model is a useful analysis tool for defining a firm's core competencies and the activities in which it can pursue a competitive advantage by following one of the two strategies:
There are two reasons why a firm may perform well in an industry, either 1) the industry is attractive to any firm 2) the firm is better and outperforms it’s rivals. Porter’s theory therefore can be used to discover the markets that are attractive to firms or, in those which aren’t breaking down the five forces so a strategy for success can be developed. In general the firm with be more profitable if each of the forces is low, that is to say there is a low threat of new firms entering, if buyers and suppliers have little power over the firm, if there is a low threat from substitute products and if competitive rivalry is low.
Even if an up and coming company makes it past the high barriers to entry, the semi saturated market would likely place those late entrants in the position for acquisition by a larger firm. Moving forward they could focus on what the market is demanding, what the future will have in store, or what the future could have in store. Based on their current standings in the industry it would be advisable for them to consider setting the standard for what the market is demanding now instead of projecting too far
Every company in any industry consists of collection of activities that help the company to create value for their customers, these collection of activities celled “ value chain”. The value chain has two types of activities: the primary activities and costs, and the support activities and costs. We will explain both of them that are related to Nintendo.
According to article call “Porter’s Five Forces Model/Strategy Framework” it stated, “The Five Forces Model was developed by Michael E. Porter to help companies assess the nature of an industry’s competitiveness and develop corporate strategies accordingly. “ (Martin, 2014). According to article call “Porter’s Five Forces Model/Strategy Framework” it also stated “The framework allows a business to identify and analyze the important forces that determine the profitability of an industry.” (Martin, 2014). According to article call “Porter’s Five Forces: Analyzing the Competition”. It stated that “
Five-force analysis provides a means of identifying the forces which determine the nature of the competitive environment, especially in terms of:
Nintendo, which is one of the video game industry competitors, have been the worldwide leader in creating the entertainment games. Nintendo’s video games have been sold everywhere in the world and they became in the list of the worlds best selling. The latest gaming console system, which is considered as a revolutionary video game console, was the Wii. It attracted a large number of people from different ages, which resulted in a large number of sales and profit. Unfortunately, nowadays the demand of the video games slightly decreased because of the new games and devices introduced recently. This internal analysis of Nintendo conducts its competitive strength assessment versus its competitors and analyzes the firm using the value chain analysis tool and the VRIO framework.
I would say its greatest attract is the capacity to have an uncompromised support gaming knowledge anyplace on the planet. You don't should be at home with the greater part of the distinctive subtleties and components to appreciate gaming on the Switch. The Switch appears to have possibly five distinct arrangements. You can isolate the two finishes and join them to some gadget to have the gamepad for this framework. Then again, you can sever the two closures of the switch to appreciate gaming like with the Wii.
With video gaming systems for instance, there always seem to be either some type of upgrade to the XBOX or something totally new and different. Computers are always getting new upgrades as well as televisions. Something new or a new brand is always being added in the video world to make life seem easier and less strenuous. Rivalry among Existing Competitors can be hard on both the business and the consumer. When you look at the video world, as I stated earlier HULU, REDBOX, NETFLIX are all competing for business.
The Porter five forces model (see Appendix 1) as an external analysis tool was established by Michael E. Porter and firstly announced in his book “Competitive Strategy: Techniques for Analyzing Industries and Competitors” in 1980 . The main idea of the Porter five forces concept is that the attractiveness of a market depends on the characteristic of the five competitive forces that have an impact on a company (see Appendix 2).
Today, the technology sector has been dominated by various companies all competing to gain the huge market share that has created great rivalry amongst many organizations even leading to the acquisition and rebranding of some like Nokia and Motorola. Under the defensive strategy, most companies employ this technique to discourage new
Porter's five forces analysis is an industry analysis model developed by Michael E. Porter as a tool for developing business strategies to become or stay competitive in an industry or marketplace as per (Braze, 2013).
It goes through the through the strength, weakness, opportunities and threats of the company. This analysis is called the SWOT analysis. It is divided into two major parts. External Factors and Internal Factors Strength and weakness are concerned with the internal factors, and opportunity and threat are concerned with the external factors. 3.1 External Factors Here only opportunities and threats are analysed as these are supposed to be listed as anticipated events or trends outside the business that have implications for performance.