Nintendo: Analysis of CATWOE Framework and Porter's Five Forces

This report analyzes Nintendo, a prominent company in the gaming industry, using the CATWOE framework and Porter's Five Forces. The CATWOE framework examines the company's clients, actors, transformation processes, worldview, owners, and environmental factors. Porter's Five Forces analysis assesses the competitive landscape, including threats from new entrants, substitution, supplier and buyer power, and competitive rivalry. The report identifies key issues and challenges faced by Nintendo, such as competition from Sony and Microsoft, and provides recommendations like implementing information systems to enhance stakeholder communication and gathering customer feedback. The analysis aims to provide insights into Nintendo's strategic positioning and suggest ways to improve its market performance, while considering the impact of information systems on the overall business strategy.

Knowledge Management Systems
and Information Systems
PART 3

Nintendo
 Established in 1889.
 Renowned organisation of
developing well known
video games like Mario,
Donkey kong and Pokemon.
 The company has an
operating income of ¥32.881
billion.

CATWOE framework
 It is basically referred to be an analytical framework that is
used as a vital part of Soft Systems Methodology (SSM).
 It is together referred to be a simple checklist for the purpose
of thinking upon the undertaken measures that are required
to be applied in the process of SSM.

Elements of CATWOE framework
There exists six vital elements of this framework that are as referred
below-
 Clients- These are small kids, youngsters and gaming artists, etc.
 Actors- These are the marketers and designers of Nintendo who
will be enforcing the projected strategies in an effective manner by
together acknowledging the product benefits to the organisational
stakeholders.

Continued...
 Transformation- This includes some leading stages of
fabrication and digital designing, etc.
 World view- Also being termed as Weltanschauung, it is
apparent to show a depiction of transformed procedures
where at this stage, the positive or negative impact of the
transformation is being analysed.

Continued...
 Owner- These are referred to be the decision makers who are
required to make prompt decisions on the basis of above
acquired findings to either stop or continue with the project
by together considering to bring any requisite change in it.
 Environment- This is the eventual element of this
framework that identifies any extraneous restraints
negatively impacting upon the success of the project.

Rich Picture

Porter's five force Analysis
 This framework helps in
identifying the probable
threats or barriers which can
hinder progress of a
company.
 Developed by Michael E.
Porter.

Continued...
 Threats from new entries: Increasing entrepreneurial
activities of in the gaming sector is posing a threat for
Nintendo.
 Threats from Substitution: The shifting of preferences from
traditional games to technically advanced options is creating
a barrier in meeting objectives. Sony and Microsoft products
are more preferred by the customers currently.

Continued...
 Bargaining power of suppliers: Nintendo is experiencing no
threat from the bargaining power of suppliers.
 Bargaining power of buyers: The company has not given
opportunities to buyers in for bargaining or slashing down
the selling price of products
 Competitive rivalry: There is continuous rivalry with Sony
and Microsoft with the company.

Recommendations
Following suggestions can be used by Nintendo for gaining
stability and implementing changes easily:
 Implementation of Information systems and using
information technology for handling communications with
stakeholders.
 Formulating strategies which have a scope of providing
effective feedbacks from the customers and other
stakeholders.

References
Books and Journals
 Wang, W., Liu, W. and Mingers, J., 2015. A systemic method for
organisational stakeholder identification and analysis using Soft
Systems Methodology (SSM). European Journal of Operational
Research, 246(2), pp.562-574.
Online
 Importance of Information Systems in an Organization. 2017.
[Online]. Available
Through:<http://smallbusiness.chron.com/importance-
information-systems-organization-69529.html>. [Accessed on 4th
April, 2017].