Competitive Dynamics in the Global Video Game Industry: A Case Study of Nintendo

Running head: COMPETITIVE DYNAMICS
Competitive dynamics
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Executive summary
The aim of this report is to discuss about the current business level strategies being followed by
Nintendo in operating in the highly competitive global video game industry. It is identified that
the strategies being initiated by them were effective a few years ago but with the recent
transformation of this industry, these strategies are less effective. In view to this, a few
limitations are identified for the existing strategies of Nintendo. Based on these limitations, this
report recommended a few strategies that will further help them in regaining their lost market
share.

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Table of Contents
Introduction......................................................................................................................................3
Identification of the competitive strategies of Nintendo.................................................................3
Cost leadership strategy of Nintendo...............................................................................................3
Differentiation strategy of Nintendo................................................................................................4
International strategy of Nintendo...................................................................................................5
Identification of the limitations.......................................................................................................5
Recommended strategy of Nintendo...............................................................................................7
Initiation of the market focus strategy.........................................................................................7
Market adaptation strategy..........................................................................................................7
International strategy...................................................................................................................8
Market penetration strategy.........................................................................................................8
Diversification.............................................................................................................................8
Conclusion.......................................................................................................................................9
Reference.......................................................................................................................................10

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Introduction
Video games industry is witnessing a huge transformation in the existing gaming trends
with the verge of entering in the ninth generation faming technologies. Thus, considering the
competitive business scenario of the global video gaming industry, it is important for each of the
players operating in this sector to cope up with the change. Among all the leading players
operating in the global video gaming markets, Nintendo is one of the oldest names and is the
creator of some of the legendary games such as Mario and Pokemon (Hollensen 2013).
Moreover, they are one of the few Japanese brands, which created worldwide brand identity.
However, in the recent time, the level and intensity of the competition got increased and market
share of them is decreasing with brands such as PlayStation and Xbox gone ahead of Nintendo.
Furthermore, the emergence of the smartphones as the alternative for the gaming consoles is
adding to the challenges for Nintendo (McKay-Nesbitt and Yoon 2015).
Thus, it is important for them to review their competitive dynamics in the forms of their
current competitive strategies and what should be done in mitigating the challenges. This report
will discuss about the competitive strategies being initiated by Nintendo currently and the extent
to which they are effective enough. A few gap areas will be identified based on which, the
recommended steps will be stated.
Identification of the competitive strategies of Nintendo
According to the Porter generic strategies of competitive advantages, Nintendo is
following both cost leadership as well as differentiation strategies.
Cost leadership strategy of Nintendo