Thursday, 13th of October 2011.
TABLE OF CONTENT
EXECUTIVE SUMMARY P.3
PROBLEM STATEMENT P.4
EXTERNAL ANALYSIS P.4-7
Macro environment
Micro Environment
Customers
4Ps
SWOT ANALYSIS P.7-9
Strengths
Weaknesses
Opportunities
Threats
STRATEGIC ALTERNATIVES. P.10-11
RECOMMENDATION. P.11-12
IMPLEMENTATION P. 13-14
APPENDIX A. P.14-16
SWOT
5 forces of Porter
Market shares
Customer Segmentation
REFERENCES. P.17
EXECUTIVE SUMMARY.
Nintendo was founded in 1889, and gained success in the early 1980s for its Nintendo Entertainment System, its Super Nintendo and its Nintendo64. In the mid-1990s however, Sony introduced the PlayStation, and Microsoft came up with the Xbox. In turn, Nintendo quickly lost its market shares to its competitors, but nevertheless fought for its survival, and reinvented itself by launching a revolutionary product called the Wii. The latter was a success and allowed Nintendo to become competitive again. How did Nintendo make its way from product loser to product leader?
Nintendo implemented a marketing strategy that led to an instant hit with demand surpassing its counterparts. But is this hit just a fad, or will Nintendo be able to keep its customers' loyalty in the long term? Its competitors are also trying to innovate in order to fight against Nintendo’s wide expansion in the game market. Will Nintendo be able to face the competition and maintain its leadership position?
To that matter, our team thought of a few alternatives strategies, such as:
Expanding the product line.
Focusing on games
Lowering the costs.
We believe that focusing on their games (second strategy) could help Nintendo keep its position as leader. If we want the customers to still have interest for the Wii on the long term, we have to keep getting their attention with inventive games. Different steps can help realize this mission. These steps will be explained in the implementation part.
Problem Statement
As stated above, Nintendo succeeded in getting back into the video game market thanks to an inventive product, which no one had previously seen. This success enabled Nintendo to overtake its competitors. The real issue here is to know whether Nintendo will be able to keep its consumers in the long-term, or if this hit was just an intense buzz, which is subject to disappear in the near future. How can Nintendo maintain its position as leader?
External Analysis
The first aspect that has to be taken into account is the Macro-environment, which consists in different external factors that have an impact on the company, and that Nintendo successfully used to its advantage. We can identify these factors thanks to the PESTEL framework, which categorizes environmental factors into 6 categories: political, economic, social, technological, environmental and legal. If we take a look at the demographic aspect, we can see that one major societal trend that the Wii has been able to identify and capture in the United States is the growing age of our population. They succeeded in keeping an eye on the different generations, such as the baby boomers, in order to target the right market. On the political level, the government has the right to interfere on the