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Nintendo Strategic Management Plan | Video Game

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Nintendo Strategic Management Plan | Video Game May 3 Nintendo 2010 Nicole Wetzell Contents PART 1: INTRODUCTION .......................................................................................................................................... 3 Executive Summary .................................................................................................................................................. 3 History of Nintendo ................................................................................................................................................... 3 Current Products........... ............................................................................................................................................. 33 Main Problem ............................................................................................................................................................ 33 Existing Mission objectives and strategies ................................................................................................................ 4 New mission and vision statements ........................................................................................................................... 4 SWOT Analysis Discussion ...................................................................................................................................... 4 Nintendo’s strategy and its advantages and disadvantages ....................................................................................... 55 Situational analysis .................................................................................................................................................... 66 Industry analysis ................................................................................................................................................... 6 Economy ............................................................................................................................................................... 66 Consumer behavior during and after the recession ............................................................................................... 77 Buyer behavior related to gaming industry ........................................................................................................... 7 PART 2: STRATEGIC ANALYSIS ............................................................................................................................. 7 Nintendo’s SWOT Analysis ...................................................................................................................................... 7 Competitors’ SWOT Analysis................................................................................................................................... 8 Playstation (Sony) ................................................................................................................................................. 88 Advantages and disadvantages of Playstation’s strategies .................................................................................... 8 Xbox (Microsoft) .................................................................................................................................................. 9 Advantages and disadvantages of Xbox 360’s strategies.......... ............................................................................ 99 Financial Analysis: .................................................................................................................................................. 1010 Nintendo ............................................................................................................................................................. 1010 Playstation (Sony) ............................................................................................................................................... 11 Xbox (Microsoft) ................................................................................................................................................ 11 Nintendo | Porter’s Five Forces ............................................................................................................................... 12 Playstation 3 | Porter’s Five Forces ......................................................................................................................... 13 Xbox 360 | Porter’s Five Forces .............................................................................................................................. 14 PART 3: Recommendations and conclusions .............................................................................................................. 15 Overview ................................................................................................................................................................. 1515 General description of Wii Too ............................................................................................................................... 15 Comparison of actual Nintendo Strategy ................................................................................................................ 15 “We would like to play too” plan, targeting “Happenin’ Moms” ........................................................................... 1616 Long-term Strategic Objectives | 2011 - 2012 .................................................................................................... 1616 Cost .....................................................................................................................................................................1616 Budget ................................................................................................................................................................. 1616 Target market ......................................................................................................................................................1717 Marketing Message ............................................................................................................................................. 17 Examples of Marketing Vehicles for “Happenin’ Moms” .................................................................................. 17 Creating a Sustainable Competitive Advantage .................................................................................................. 18 Evaluation ............................................................................................................................................................... 1818 Works Cited ................................................................................................................................................................. 2828 2 PART 1: INTRODUCTION Executive Summary Nintendo has always committed to its customers by providing high quality entertainment products. In 2006, the company launched the Wii game console along with a catching marketing strategy which was very successful. Today, the company has experienced decreased sales. This plan will discuss the background of the company, analyze Nintendo’s current situation along with Playstation 3 (created by Sony) and Xbox 360 (created by Microsoft) and provide some recommendations for a new game console as well as a new marketing plan. History of Nintendo In 1889, Nintendo started as a Japanese playing card manufacturer and remained in this industry until 1974 when it created the video game market with the Magnavox Odessey. Since then, the company has been committed to creating new and innovative video game consoles and games like Nintendo Entertainment System, Super Nintendo Entertainment System, N64, Game Cube, Game Boy, Game Boy Color, Game Boy Advance, Game Boy Advance SP, Game Boy Micro, Nintendo DS, Nintendo DS Lite, Super Mario Brothers game series, Donkey Kong and the Zelda game series (Thompson, Strickland, & Gamble, 2010, pp. C-238-239). In 2006, the company released a brand-new and unique gaming system, Nintendo Wii, which won the majority of the video game console marketing share. Currently, Wii console and game sales have dramatically dropped due to the current recession. Additionally, gamers and analysts are beginning to ask what next console release will entail, implying that demand has decreased for the console. (Thompson, Strickland, & Gamble, 2010, pp. C-238-239). Current Products •• Nintendo Wii and various compatible games •• Nintendon DS and various compatible games •• Pokemon cards (Nintendo, 2010) Main Problem Due to the recession and the fact that another game console has not been released since 2006, Nintendo Wii sales have dramatically decreased in the past couple years. In order to keep a sustainable competitive advantage over Playstation 3 and Xbox 360, the company needs to launch a new gaming system (which will please both hard core and fair weather gamers) along with a compelling marketing strategy. 3 Existing Mission objectives and strategies Mission Statement: “We are strongly committed to producing and marketing the best products and support services available.” (Nintendo Corporation, 2010) Vision Statement: Based on Nintendo’s web site, the company does not have a vision statement. New mission and vision statements Mission Statement: “Nintendo makes the high quality, innovative and unique gaming products and provides related services available world-wide.” Vision Statement: “Bringing people together.” SWOT Analysis Discussion Strengths •• Since
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