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.
• The threat of new entrants in the console video games industry is medium. If new game company comes into the market with better console then customer move from Nintendo wii to new product. And this will reduce Nintendo wii’s sale.
• Industry rivalry in the console video games market is high. There is a high degree of competition between the three main players: Nintendo, Microsoft, and Sony. Competition from smaller, independent players and start-ups also contributes to the high degree of rivalry. Each of the major rivals spends vast resources on research and development, marketing, and advertising in order to compete more effectively with other rivals.
• The threat of substitute products is high. 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 ...
... middle of paper ...
...ping in mind the end goal to expand adequacy and proficiency and abatement waste scrap.
•Using less expensive materials and different assets
•Gaining economies of scale by high volume of offer
•Decrease work cost and build work efficiency
•Investment in innovation and hardware with a specific end goal to diminish producing cost
In previous assessment we have discuss Business level system in which Cost-administration Strategy was best when contrasted with item Differentiation. In any case, Nintendo 's wii can be one of a kind in a bigger number of ranges instead of cost-authority. In this way, Nintendo 's wii ought to need to pick coordinated business level technique in which Product Differentiation Strategy would be go about as essential since it will give reasonable upper hand. It doesn 't imply that Cost-authority can be disregarded. It can be
Need Writing Help?
Get feedback on grammar, clarity, concision and logic instantly.Check your paper »
- Product Description The Nintendo Wii was launched in the United Sates on November 19, 2006. Its compact console is less than 2 inches thick, weighing a mere 2.65 pounds, and is approximately 8.5 inches long and 7 inches wide (Wii, 2010). It comes with a wireless, motion sensitive, ergonomic remote, with eternal connectors for the Nunchuk and the Classic Controller; and motion sensors that can be used from six to ten feet away (Wii Controllers, n.d.; Wii Console, n.d.). Nintendo also offers the MotionPlus accessory, which provides additional precision (Wii Console, n.d.).... [tags: Product Review ]
883 words (2.5 pages)
- Nintendo produced the first console in 1985 and brings in roughly $10 billion a year. While it remains the world’s leading player in video games, Nintendo faces major challenges over 2012-2017. This marketing plan assessment will analyze the company’s prospective responses to the challenge represented by Sony and Microsoft’s next-generation consoles, and considers the possibility of Nintendo’s strategy of producing software completely for its own hardware in light of the rise of mobile gaming. SWOT Analysis Nintendo Strengths One of the business 's main power is the fact that it is truly global has a physical presence in most corners of the world.... [tags: Wii, Video game console, Nintendo]
1050 words (3 pages)
- Nintendo: Here Wii Go While for years Nintendo dominated the market for virtual gaming, a rise in competition presented serious challenges for the company. After struggling for the first five years of the new millennia, Nintendo made an exceptional comeback with its innovative products, the Wii and the DS that shook the market and brought in a completely new set of customers. Their new strategy was so successful it allowed the company to become Japan’s second most valuable business after Toyota (Farhoomand, 2009).... [tags: Business Administration]
1070 words (3.1 pages)
- Jordan Sizemore 12/11/2014 Final Exam Nintendo was a company that originally made playing card games but decided in the 1970’s to branch out into video games. Their first few video game systems did not have much to them and were overlooked. They finally got a leg up in the industry in 1985 when they introduced the Nintendo Entertainment System or NES to the market. While it was very successful because of its superior graphics when it became coupled with a certain plumber named Mario it became the superstar console of the gaming industry.... [tags: Video game console, Wii, Nintendo]
1699 words (4.9 pages)
- Nintendo Co., Ltd. Is a Japanese, multinational, consumer Electronics Company headquartered in Kyoto, Japan and founded by Fusajiro Yamauchi in September 23, 1889. Nintendo originally manufactured handmade hanafuda cards. After several tried and failed businesses, Nintendo settled with video games in 1963(Wikipedia, n.d). Today, Nintendo is the world leader in the growth, development and the continued improvement of the home leisure electronics and have sold more than a billion video games to the world (Nintendo, 2010).... [tags: business, competitor, japanese multinational]
1821 words (5.2 pages)
- Wii U uses Personal relevance, value, and social need to motivate the consumer to buy their game. For the majority of gamers, Mario was introduced into their life since 1981. Therefore, Mario game is what most gamers are growing up with. Therefore, most gamers are likely to buy Wii U once they know that Wii U consists of Mario games. Because Mario reflected consumer’s childhood experience, which represents self-concept, the consumer is more likely to introduce Mario to their children too. If the parents had a good experience with the game, of cause the parents would want to share that experience with their son and daughter.... [tags: Video game console, Nintendo 64, Wii, Xbox 360]
778 words (2.2 pages)
- Nintendo’s Wii gaming console was launched to the public late 2006. As of today, the Wii has become the best-selling latest generation console system in the world (Nintendo, 2007). Although, the Nintendo Wii is a successful product, heavy competition and future gaming trends threaten Nintendo and Wii’s future success. Since the rise of Sony’s PlayStation and Microsoft’s Xbox, Nintendo has seen declining sales with their video game and consol systems almost resulting in Nintendo’s demise. By using the BIRAC method, recommendations will be made to continue the Wii’s success benefiting Nintendo.... [tags: Nintendo Wii Strategic Analysis Business]
1697 words (4.8 pages)
- THE HISTORY OF NINTENDO Nintendo Company, Ltd is based in Kyoto Japan. They are recognized as being the "worldwide leader in the creation of interactive entertainment" (Nintendo, 2002, PG). Some of the world's best selling video gaming has come from the Nintendo Company, including Game Boy and Nintendo 64. In America Nintendo is based in Redmond, Washington. It is interesting to note that in American households nearly 40% have a Nintendo product. The latest product launched by Nintendo has been the Game Cube, a video game console which will undoubtedly prove to be yet another bestseller.... [tags: Business]
1553 words (4.4 pages)
- While the Nintendo name is most closely associated with a video game platform (the NES), the company's real focus has always been the games rather than the platform. Herein lies the true distinction between Nintendo and its two larger rivals. Nintendo seeks to make good games. Microsoft and Sony seek to control a distribution channel. Nintendo is the only company among the three console makers that began life as an entertainment company - and it shows. Microsoft is known for software; Sony is known for hardware; and Nintendo is known for games.... [tags: Video Games Entertainment Business Analysis]
1712 words (4.9 pages)
- Nintendo SEGA’s Strategy SEGA’s strategy is to become a world leader in video entertainment. Their strategic intent is to build an entertainment empire. To achieve this, SEGA has adopted a technology oriented strategic plan that focuses on acquiring and maintaining competitive advantages in fields such as multimedia, computer graphics, virtual reality, and high tech amusement theme parks. The research and development spending has been boosted to capture the market before the competitors. SEGA’s strategy is characterized as “first at all cost” since the burn they took from Nintendo on the release of the 8-bit system.... [tags: Papers]
1793 words (5.1 pages)