1. (A) ANALYZE AND APPRAISE NINTENDO’S STRATEGIC POSITI

1. (A) ANALYZE AND APPRAISE NINTENDO’S STRATEGIC POSITION IN THE GLOBAL MARKETPLACE AND
ITS READINESS TO FURTHER COMPETE GLOBALLY.
The external environment's impact on strategy, the organization's strategic capability (resources and
competences), the organization's goals, and the organization's culture are all factors to consider when
determining the company's strategic position.The Strategic Position is concerned with the external
environment's influence over strategy, internal capabilities and competences, and stakeholder
expectations and involvement. Together a consideration of the environment, strategic capability, the
expectations, and purposes within the cultural and political framework of the organization provides a
basis for understanding the strategic position of an organization (Johnson and Scholes, 2005).
It is critical Nintendo to take into consideration effective strategic positioning which ensures that an
organization’s marketing strategies are align with its customers and accommodating them to take some
sort of action. If this is not the case, the organization must identify what modifications are necessary to
make and whether it has the capability of bringing forth such transformations.
The following is a critical analysis on Nintendo’s external environment factors.
Critical evaluation
Impact of Covid
19
The COVID-19 pandemic affected lives, including how we spend our leisure time.
Researchers found that playing games has increased for 71%, while 58% reported that
playing games has impacted their social lives and well-being, while 63.1% stated that the
types of games they play had changed (Matthew Barr, Alicia Copeland, 2021). Sony was
able to maximize their revenue capitalizing this new opportunity via new launches.
However, Nintendo have failed to use this opportunity in terms of product development
to make use of the new normal.
Emerging markets China is the world largest video game market, console market which estimated at $2.1 Bn
by 2024 (Appendix), where Nintendo should focus furthermore. APAC has the largest
sales (78.4 Bn), 3rd largest YOY increase (9.9%) and highest regional share (49%). Also,
MENA market forecasted growth (appendix) in foreseeable future, where Egypt has the
highest proportion of gamers following UAE and Saudi. Entering to the professional
gaming market where hardcore gamers, streamers will also give competitive advantage
through which Nintendo needs to improve its readiness further.
Table 1: Critical analysis of external factors – Macro environment
Table 2: Critical analysis of external factors – Microenvironment
Critical evaluation
Industry rivalry There are three major competitors (Appendix), size and power relatively high. Even
though, the number of competitors relatively less, due to product lacks distinctiveness
and purchasers have a cheap switching cost, one player will not be able to lock them in.
Nintendo also should focus on price competition where demand drops, companies with
high fixed costs and perishable items feel compelled to cut prices. Product keep
innovation is key factor to survive in which Nintendo needs to further invest since it is
only fairly ready to globally compete yet.

Threat of substitutes Even though Nintendo has higher market share (appendix), still threat of substitute is
relatively high. Relative price and quality of substitute products like XBOX, PS4 increases
threat of substitute. Nintendo has higher customer loyalty, but competitors like SONY’s
product diversification and segmentation might switch customer loyalty to its substitutes.
Also due to lower switching cost and higher price competition will have an impact on
threat of substitute. Therefore, Nintendo is only fairly ready to compete globally yet and
need to improve market proactivity in terms of capturing emerging consumer trends
through new innovations.
The following is a critical analysis on Nintendo’s internal environment factors.
Table 3: Critical analysis of internal factors
Critical evaluation
Staff
Nintendo has 6000 employees worldwide, encourages fierce employment loyalty
(Appendix). Currently, Nintendo has a seniority based reward scheme. Instead of that,
Nintendo can initiate modern practices like performance-based increments might have
more attraction towards younger employees. Nintendo is ready in terms of staff, however
could further improve some areas to boost improve morale.
Strategy Our core strategy is still mainly on gaming consoles whereas the industry is heading
towards disruption by enhancing horizons of home entertainment industry. Nintendo
should consider product development on consoles, software, and characters and
differentiation strategies, diversification, strategic alliances, and partnerships which will
improve competitive advantage over rivals to increase competitiveness.
Conclusion.
In consideration above facts and figures, we can conclude Nintendo’s overall readiness to compete
globally is tenable, which will retain its competitiveness in the short-run. In long-term to compete
strongly, Nintendo will have to diversify their strategies and new product developments with focus on
new emerging market and trends.

1. (B) CRITICALLY EVALUATE THE FIT BETWEEN NINTENDO’S ORGANIZATIONAL CULTURE, INCLUDING
LEADERSHIP STYLE, AND ITS CURRENT STRATEGIC INTENT AND STRATEGY.
An organization's underlying assumptions, values, and beliefs (or corporate philosophy), as manifested
in expressions, artefacts, symbols, rituals, structures, and behavioral standards. Culture leads to the
formation of characteristics or traits (Lewie Diasz, 2017).
It is important to maintain a strong organizational culture which enhances job satisfaction among
employees, change encourages innovation, guide an organization survive in the highly dynamic modern
business environment. Employee empowerment and job satisfaction are key factors that determines
level of organizational success.
The public image and reputation of a corporation are reflected in its organizational culture. The general
public forms opinions about a corporation based on their interactions within and outside of it. Due to a
lack of corporate culture, stakeholders may be hesitant to do business with anyone linked with the
brand.
The following is a critical evaluation of Nintendo’s organizational culture and leadership style.
Table 4: Critical evaluation of organizational culture & leadership style
Culture and Leadership style
Strengths
 Nintendo has a strong legacy
more than 100 years that prides
on its history, heritage, and
values, infused with Japanese
culture. Cultural and leadership
values are wrapped around pillars
‘compliance focused as opposed
to breaking the rules’ and
‘collectivist leadership/
management style’.
 Nintendo’s culture always
embraces innovations and open
to new ideas while opposed
disruptive innovations. They
believe ‘getting it right is more
important than speed to market’.
 Nintendo has started recruiting
fresh talent to its culture to
improve the creativity and
intellectual abilities.
Weaknesses
 Nintendo operates flat organizational
structure which will limit productivity
and can result in a significant amount
of time being wasted in decision
making. This flat organizational
structure can encourage power
struggles and can hinder employee
retention.
 There is no indication regarding
gender diversification and lacks focus
on environment sustainability.
 Nintendo is not focused on speeding
to launch market/ rapidly new and
enhance products to the market
which will create disadvantages like
losing market positioning.
 Nintendo had long tenures of leaders
in certain instances where creativity
was hindered and change of
perspective was deprived from the
organization.

The following is a critical evaluation of Nintendo’s strategic intent and strategy.
Table 5: Critical evaluation of strategic intent & strategy
Strategic Intent and Strategy
Strengths
 The strategic goal is to "bring
smiles on the faces of everyone
Nintendo comes into contact
with." With the global objective
of making high-quality items
while also treating each
consumer with care, compassion,
and respect. Nintendo’s strategic
intent will provide guidance on
its aspirational plans, overarching
goal, or anticipated path of travel
required to achieve an
organization's vision. Beneficial
change is the product of an
organization's strategic aim,
objectives, and needs.
 In addition, as a company's core
ethics or ideas, Nintendo places a
premium on adaptability,
distinctiveness, sincerity, and
honesty, which it will follow no
matter what. They motivate
employees to do their best while
simultaneously limiting their
activities.
Weaknesses
 Nintendo needs to update its mission
and vision statements since they are
important aspects of your brand, but
if your employees aren't excited
about live them every day, your
brand and culture aren't in sync. With
the current global market it is wise
for Nintendo to modify its vision
statement to be more aspirational
and to bring out where the home
entertainment industry is heading.
Nintendo’s current mission
statement is too long and hard to be
remembered by its employees, hence
should be crafted in a better way to
resonate with employees. It is the
ideal time to evaluate a company's
vision and objective for relevance
and long-term viability.
 Referring to case study, Nintendo is
not focused on disruptive innovation
strategy. Disruptive innovation
concepts let businesses to take a
pace back and assess their current
products and services, ascertaining
areas that may be enhanced,
consumer requirements that could
benefit from a creative solution, and
more.
Critical evaluation of the fit between organizational culture, strategic intent, and strategy.
Strategic alignment, a procedure for ensuring that an organization's structure, resource allocation, and
culture complement its strategy. This ensures that resources are utilized efficiently.
Nintendo's culture is always open to new ideas and supports innovation while disruptive innovations
are opposed. These breakthroughs may have lower profit margins, a smaller niche market, or a simpler
technology, but they can grow in sophistication and sophistication over time. As these new products and
services establish a foothold in the market, they may supplant existing market leaders. So, Nintendo
should do a recap on their strategic intent regarding disruptive innovation because it does not reflect
moral of the Nintendo’s culture.