Strategic Management of Nintendo: Competition, Resources, and Future Strategies

STRATEGIC
MANAGEMENT

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Executive Summary
This report will discuss the condition of Nintendo in terms of the competition they are facing
in the market. In this it was found that this firm is facing tough fight from firms like
Microsoft and Sony. It was found that the bargaining power of suppliers is on the lower side
while that of the consumers is on the higher side. Threat of substitution, competition and new
entrants are higher in this industry. The primary activities of the firm have been designed in a
manner that they are able to improve the lifecycle of their products and ensure higher
customer satisfaction. This also enables them to enhance the value of their products. In this
report it was also found that Tangible and Intangible resources of the company are of high
quality and it enables them to be better than their rivals. Apart from this the analysis of the
internal environment suggested that this firm’s strength includes higher brand name and
innovative products. Its weaknesses are the failures in the past related to consoles. It has large
opportunities in the online gaming development and also in the new markets. They are
utilising different types of strategies such as Skimming pricing strategy, Cost leadership
strategy, focus differentiation, ppositioning strategy and Promotion strategy. In future
company needs to implement the strategies such as Strategic alliance, moving into advanced
technologies and growth strategies such as expansion to remain competitive.

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Contents
Executive Summary..................................................................................................... 1
INTRODUCTION....................................................................................................... 2
Type of Industry......................................................................................................... 2
General environment analysis......................................................................................... 3
Understanding of competition......................................................................................... 4
Internal value chain analysis.......................................................................................... 5
Primary activities..................................................................................................... 5
Support activities..................................................................................................... 5
Understanding of current resources, tangible and intangible....................................................6
SWOT analysis.......................................................................................................... 7
Core competencies...................................................................................................... 8
Identification of the Current Strategy................................................................................9
Future strategies......................................................................................................... 9
Recommendation...................................................................................................... 10
Conclusion.............................................................................................................. 10
References.............................................................................................................. 11

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INTRODUCTION
Today’s gaming industry has become very much bigger. With large numbers of gaming
developers coming in the industry, it is essential that firm finds the way in which they will be
able to attract their customers with new features and higher levels of animation. In this
environment it is crucial for any industry to improve the ways in which they deal with the
challenges confronting the business. In this regards it is again important that an effective
strategies has to be made for it. The strategies need to be made on the basis of the competitive
ability of the firm. Use of different kinds of strategic tools can be effective for the firm.
Nintendo Co. Ltd. is a Japanese multi-national firm dealing in the business of consumer
electronics and video games (Pontiskoski and Asakawa, 2009). It is headquartered in
Kyoto. With many of its games being best console seller, it is one of the largest video game
firms in the world in terms of market capitalisation. They are known for selling of Video-
game franchise that becomes one of the best sellers like Pokemon, Mario and The legend of
Zelda. The major problem that this company is facing is related to competition which has
increased due to hand-held devices such as Mobile phones.
This report will highlight the type of industry in which Nintendo works in. The report
provides analysis about the general environment of the company. It also analyses the
competition that is present within the gaming industry. It also highlights the core
competencies of the cited firm and highlights the current and future strategies of the firm.
Type of Industry
This firm works in the consumer electronics and video gaming industry. This is a product
based industry that has long term scope of development. Video-gaming industry is one of the
fastest growing industries in all across the world. Global games market has risen to $134.9bn
alone in the year 2018. This is a growing industry that has larger control over the operations.
This industry is supported by the enhancement in technology hence needs regular innovation
to be competitive against each other (Subramanian, Chai and Mu, 2011).
General environment analysis
It is crucial for any organisation to understand the environment that they are in. This is
essential for understanding the condition in which they are in. It plays a vital role in the
systematic development of the strategy as well as for understanding the problems that they
might face in their future. There are different factors that are having impact on the