NAMCO BANDAI Holdings, Inc. History

• Original name: Bandai – ya • Meaning: Everlasting & Eternal • Founded by: Mr Naoharu Yamashina • Started in: 1950 • Forms of business ownership: Public listed company • Vision: The World’s Most Inspiring Entertainment Group History : Development

Jul 1950 President Naoharu Yamashina founds Bandai. Sep 1950 First original Bandai product launched: the Rhythm Ball. Jun 1977 Bandai (H.K.) Co., Ltd. established as an overseas manufacturing base in Hong Kong. May 1985 Bandai formally entered the Chinese market. Aug 1988 Listing gained on the Tokyo Stock Exchange, First Section. History : Development

Nov 1996 Tamagotchi launched Sep 2005 NAMCO BANDAI Holdings Inc. is established by Bandai Co., Ltd. and NAMCO LIMITED as a joint holding company. Apr 2007 First ever Bandai kids haircut shop, Anpanman Hair Salon, opens inside Yokohama Anpanman Children’s Museum. Aug 2007 Directly managed family entertainment café Roasis begin operations. What to Produce? Products & Services

• Toy - Character toys, e.g. figures of anime - Electric toys, e.g. TAMAGOTCHI - Candy toy • Capsule Toy Models GUNDAM, battle ship, etc.

• Mobile games • Video games software • Arcade game machines How to produce – Division of labour

Labour

katoki_hajime (Designer and Illustrator)

Capital For whom to produce? Target customers Kids

Teenagers

Collectors Integration, Aquisition & Tie-up 2003 ~ 2008 - Enters into a cooperation with Mega Bloks Inc. (The world's second largest manufacturer of toy building blocks - and enters the building-block market.) - Forms a capital alliance with the infants' toy manufacturer People Co., Ltd.

Integration, Acquisition & Tie-up

- NAMCO BANDAI Holdings Inc. ( = Bandai Co., Ltd. + NAMCO LIMITED)

- Bandai acquiring a 33.4% share of the company - Tsuburaya Productions Co., Ltd. Reasons for integration & tie-up

- Tohato Inc.(candy toy): develop new business by using the lowest cost

- Increasing the Scale of production to enjoy economies of scale

- Increasing the Scope of production to enjoy diversification Competitive environment

Producing games The NDS produced which is suitable for by Nintendo is very children and adults popular, containing such as Monopoly varies types of games Producing toys and models which can be substitutes SWOT analysis

Strengths • Practice division of labour • Bandai’s scale is large, average cost is lower • The scope of specialization is wide • Use of management specialists • Being able to afford huge expenses on research and development (e.g. Hoppy Centre) • large market share SWOT analysis Weakness • GUNDAM only focus on the collectors’ market. • Comments sheet of capsule toy have Japanese version only. • Markets are concentrated on boys, kids, teenagers and collectors. Opportunities • Producing toys for elderly to increase the demand and total revenue Threats • The birth rate is decreasing. • Bandai keeps on focusing on the market of children. • Games are focusing on boys but neglecting girls’ needs. • Competitors’ advanced development .

Suggestions to NAMCO BANDAI • Establishing large scale Bandai shops • Comments sheet of capsule toy can be replaced in English version • Developing girls video game market • Developing elder’s toy or other services • Developing net services and online games • Cooperating with famous brands • Advertisement and sponsor • Creating Bandai’s own cartoon characters • Increasing educational toys Demand & Supply of the products/services of NAMCO BANDAI END