The Lisbon MBA 2019/2021 - Executive Strategy & Value Creation Prof
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@@pos23 The Lisbon MBA 2019/2021 - Executive Strategy & Value Creation Prof. Adriano Freire Groups 1 & 2 Anna Martirosyan Carlos Albuquerque Daria Trinkhaus Deny Sá Ivana Machado José Rodrigues Patricia Conceição Pedro Daniel Pedro Nuno Oliveira Ricardo Velosa Rodrigues 0 We would like to thank Professor Adriano Freire for the support and availability in reviewing and discussing all the contents of this report. 1 1 EXECUTIVE SUMMARY ................................................................................................................ 4 2 COMPANY OVERVIEW ................................................................................................................ 6 3 ENVIRONMENTAL ANALYSIS ....................................................................................................... 8 3.1 MACRO ENVIRONMENT ................................................................................................................... 8 3.2 MICROENVIRONMENT .................................................................................................................. 15 4 ORGANIZATIONAL ANALYSIS .................................................................................................... 34 4.1 RESOURCES ................................................................................................................................ 34 4.2 CAPABILITIES .............................................................................................................................. 39 4.3 CORE COMPETENCIES ................................................................................................................... 40 4.4 STRATEGIC FIT ............................................................................................................................ 41 4.5 STRATEGIC INTENT ....................................................................................................................... 43 4.6 SWOT ANALYSIS ........................................................................................................................ 45 4.7 ORGANIZACIONAL CULTURE ........................................................................................................... 48 5 OBJECTIVES AND STRATEGY ...................................................................................................... 49 5.1 VISION, MISSION AND VALUES ....................................................................................................... 49 5.2 OBJECTIVES ................................................................................................................................ 51 5.3 STRATEGY .................................................................................................................................. 52 5.4 BUSINESS MODEL ........................................................................................................................ 59 6 BUSINESS STRATEGY: PRODUCTS-MARKETS .............................................................................. 60 6.1 ANSOFF MATRIX ......................................................................................................................... 60 6.2 PRODUCTS-MARKETS MATRIX ........................................................................................................ 62 6.3 COMPETITIVE ADVANTAGE - GENERIC STRATEGIES MODEL .................................................................... 65 6.4 INNOVATION STRATEGY ................................................................................................................ 67 7 VERTICAL INTEGRATION ........................................................................................................... 73 7.1 NINTENDO’S VALUE CHAIN ............................................................................................................ 74 7.2 MODES OF VERTICAL INTEGRATION .................................................................................................. 75 7.3 STRATEGIC OUTSOURCING ............................................................................................................. 76 8 INTERNATIONALIZATION .......................................................................................................... 77 8.1 COUNTRY ATTRACTIVENESS ................................................................................................... 78 8.2 COMPETITIVE ADVANTAGE OF NATIONS .................................................................................. 80 8.3 INTERNATIONALIZATION MODES ............................................................................................. 81 8.4 INTERNATIONALIZATION INTEGRATION AND RESPONSIVENESS ................................................ 81 9 DIVERSIFICATION ..................................................................................................................... 82 2 9.1 BCG MATRIX ............................................................................................................................. 84 9.2 KEY INSIGHTS ............................................................................................................................. 89 10 CORPORATE DEVELOPMENT ..................................................................................................... 89 10.1 EXTERNAL DEVELOPMENT: STRATEGIC ALLIANCES .............................................................................. 90 10.2 MERGERS AND ACQUISITIONS ....................................................................................................... 96 11 PLANNING ................................................................................................................................ 98 11.1 ORGANIZATIONAL STRUCTURE ...................................................................................................... 99 11.2 PLANNING UNDER UNCERTAINTY ................................................................................................... 99 11.3 EGOS MAP – LEADERSHIP IN NINTENDO PLANNING ......................................................................... 101 12 IMPLEMENTATION ................................................................................................................. 101 12.1 FUNCTIONAL MANAGEMENT ...................................................................................................... 101 12.2 PROCESS AND PROJECT MANAGEMENT ......................................................................................... 102 12.3 IMPLEMENTATION LEADERSHIP ................................................................................................... 103 13 CONTROL ............................................................................................................................... 105 13.1 CORPORATE GOVERNANCE......................................................................................................... 105 13.2 MANAGEMENT CONTROL .......................................................................................................... 107 13.3 GROUP AND INDIVIDUAL CONTROL .............................................................................................. 109 13.4 LEARNING ORGANIZATION ......................................................................................................... 110 14 CONCLUSIONS & OUTLOOK .................................................................................................... 110 15 LIST OF TABLES AND FIGURES ................................................................................................. 114 16 REFERENCES ........................................................................................................................... 117 3 1 Executive Summary For the purposes of our group strategic analysis, we have chosen the Japanese company Nintendo Co., Ltd. which engages in the development, manufacture, and sale of entertainment products. Its entertainment products include a variety of videogames (software) and both handheld and home consoles (hardware). The company was founded by Fusajiro Yamauchi on September 23, 1889 and is headquartered in Kyoto, Japan. Starting its first international branch back in 1979, today, as a global company, it is present in all continents operating in 41 countries and having the top-selling console (Nintendo Switch) in 2020 around the world. In the report below, we proceed into the environmental analysis of the Company where we analyze both macro and microelements and how they impact the videogames industry and the Company in particular. We come across some challenges on macro-environment elements, namely on the political and economic dimensions around the world. There are also expectations with regards to customers’ demographics as it shows positive trends both with age and gender. The industry has been showing significant growth over the last decade with the main players being Nintendo, Microsoft, and Sony, although the same industry is witnessing the growth of alternative propositions (mobile gaming, streaming services). And with fierce competition, key success factors such as price, replay value, engaging theme, and technologic innovations, among others, will play a critical role in the strategic fit of these companies. Further, we do a multi-angle review of the Company's sustainable strategy and how the Company creates sustainable value in such a dynamic and ever-evolving industry. We also show how the Company, with such a long history and legacy, can manage to converge the long-existent traditional with