Business Analysis of Nintendo

Running head: BUSINESS ANALYSIS OF NINTENDO
Business analysis of Nintendo
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1BUSINESS ANALYSIS OF NINTENDO
Executive summary
The aim of this paper is to conduct a business analysis of Nintendo. The gaming mogul, founded
in the year 1889, is one of the most well known companies in the gaming industry. The company
reels in millions of dollars in profits each year. However, due to ineffective strategic
management and lack of robust corporate strategies, the company has incurred huge losses in
recent years. This is all the more poignant when Nintendo’s performance is compared to that of
its competitors. The following paper attempts to study Nintendo’s current status in the video
gaming industry. A PESTLE and S.W.O.T analysis has been carried out to study its internal and
external environments. Some key strategic issues have been identified and recommendations
have been made for betterment of the company.

2BUSINESS ANALYSIS OF NINTENDO
Table of Contents
Introduction:....................................................................................................................................3
Executive summary of current business scenario and corporate strategy...................................3
Discussion:.......................................................................................................................................4
Internal analysis of Nintendo:......................................................................................................4
S.W.O.T analysis of Nintendo.................................................................................................4
External analysis of Nintendo.....................................................................................................6
PESTLE analysis of Nintendo.................................................................................................6
Summary of issues faced by Nintendo........................................................................................7
Recommendations for Nintendo:.................................................................................................8
Conclusion:......................................................................................................................................8
References:......................................................................................................................................9

3BUSINESS ANALYSIS OF NINTENDO
Introduction:
Nintendo, which introduced its first revolutionary gaming console in the year 1989, has
remained one of the premier choices in the video game industry. The company strategy has been
the same from the very beginning – to target an audience interested in video games and lure in
potential new customers (Nintendo 2018). However, unlike other companies, the profitability of
the company is entirely dependent on video games, which limits its horizons. The video game
industry, while one of the most beloved forms of entertainment, has incurred losses in the last
few years. Yet, the video game industry drew in more than seventy three billion dollars
worldwide. Out of that, Nintendo occupied a nominal share in the market, with other brands like
Sony gradually taking over. In the fiscal year of 2018, Nintendo saw a revenue generation of
around 4 million dollars. The current business strategy of Nintendo is straightforward and fails to
position the brand as the number one choice in the video game industry. This report carries out a
detailed analysis of the strategic management at Nintendo, and attempts to present a few
recommendations which can improve its performance in the global market.
Executive summary of current business scenario and corporate strategy
The business model of Nintendo is based on a conservative practice. In the recent
financial report released by Nintendo, their cash reserves had in store more than 4.5 billion
dollars. This might seem impressive, but is actually alarming, keeping in mind he 10 billion they
reported a few years ago. The corporate strategy of Nintendo is relatively simple and customer
oriented. Nintendo’s target audience would be young people between the ages of 13 and 25 who
are hardcore gamers. While the company did suffer massive losses in the past few decades, their
official annual report revealed that the introduction of the Nintendo Switch has increased the