BBMM506 Strategic Management Case Study: Nintendo's Current Strategies

This case study provides a strategic management analysis of Nintendo, a major player in the gaming industry. It begins with an introduction to Nintendo and its strong brand, followed by an overview of the general environment, including the bargaining power of suppliers and consumers, and the threats of competition, new entrants, and substitution. The analysis includes a value chain analysis of Nintendo's primary and secondary activities, highlighting its strengths in inbound and outbound logistics, operations, marketing, sales, and after-sales services, as well as its skilled workforce, technology development, and procurement processes. A SWOT analysis identifies Nintendo's strengths (strong brand, innovative products, efficient pricing) and weaknesses (console failures, lack of diversification), as well as opportunities (online gaming, developing markets) and threats (higher competition). The core competencies of Nintendo are identified as simple and casual games, lower production costs, and a strong brand name. The study also examines Nintendo's current strategies (skimming pricing, cost leadership, focus differentiation, positioning, promotion) and suggests future strategies, including strategic alliances, moving into advanced technologies, and growth strategies. Recommendations include moving into virtual reality games, designing consoles appropriately, and expanding into new countries. The case study concludes that Nintendo needs to adapt its product range and focus on online gaming to remain competitive.

STRATEGIC MANAGEMENT
NINTENDO

Introduction
• Nintendo is one of the biggest gaming firms.
• The resources of the firm are of high quality.
• The internal environment of the firm is also
good.
• In this PPT, there will be representation of the
current situation, challenges that firm is facing
along with the strategies they are using now and
the strategies they can utilise in their future.

General Environment
• Bargaining power of suppliers is on the lower
side.
• Bargaining power of consumers is on the
higher side.
• Threat of competition is higher.
• Threat of new entrants is higher.
• Threat of substitution is higher.

Competition
Nintendo’s major competitors are:
• Sony: Their product PS4 is one of the most
successful products in the market
• Microsoft: Xbox one is also highly successful.
Most of their competitors are switching towards
online gaming and digital technologies.

Value chain analysis
Primary activities
• Inbound and outbound logistics are maintained effectively with the
help of skilled labour force.
• Operations are managed in an appropriate manner.
• Marketing and sales is effective.
• They also provide after-sales services.
Secondary activities
• HRM: This company has highly skilled workforce.
• Technology development: This company has technology that are of
high quality and are highly innovative.
• Procurement: This firm has higher numbers of quality suppliers that
has improved its procurement process.

Resources
Intangible resources
• R&D Team
• Labour force
• Excellent supplier’s group
• Manufacturing and inventory system
Tangible resources
• Strong cash flow
• Equipment

SWOT Analysis
Strength
Strong brand name.
Innovative and Unique product.
Efficient pricing
Weakness
Console failure
Lack of diversification
Opportunities
New Segments like online gaming.
In the developing markets.
Threats
Higher competition
Decrease in profits

Core Competencies
• Simple and Casual
games
• Lower production cost
• Stronger brand name

Current and Future strategies
Current strategies
• Skimming pricing strategy
• Cost leadership strategy
• Focus differentiation
• Positioning strategy
• Promotion strategy
Future strategies
• Strategic alliance
• Moving into advanced technologies
• Growth strategies

Recommendation
• Move onto virtual
reality games.
• Design Consoles
appropriately.
• Move into new
countries.

Conclusion
• Nintendo is a successful gaming developer firm.
• They have developed many successful games in
the past.
• Recent performance in the market has not been
so good.
• They need to change their product range and
should move onto the online gaming
development so as to remain successful and
competitive in the market.

References
• Pasch, M., Bianchi-Berthouze, N., van Dijk, B.
and Nijholt, A., 2009. Movement-based sports
video games: Investigating motivation and
gaming experience. Entertainment
Computing, 1(2), pp.49-61.
• Djaouti, D., Alvarez, J., Jessel, J.P. and
Rampnoux, O., 2011. Origins of serious games.
In Serious games and edutainment
applications (pp. 25-43). Springer, London.