Nintendo: Expanding the Gaming Population Through Innovation

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Case study: Problem statement Nintendo has been known for continual product improvement and innovation and with its new strategy, “Expansion of the gaming population”, Nintendo is offering affordable new products that can be enjoyed by anyone from 5 to 95 years old. Since the release of the Nintendo Wii in November 2006, the company has seen exponential growth in revenues and operating income over its 2005 fiscal year. In an industry that is very competitive and driven by ongoing technology advancement, Nintendo’s challenge is to continuously examine its innovative strategies and competitive environment to maintain the competitive advantage and the financial success that the Wii has given and continue it into the future. Situation analysis Throughout Nintendo history, it has been known for continual innovation and product improvement. Shigeru Miyamoto, the video game mastermind had created Donkey Kong, which was a major success in 1981 that gave Nintendo international recognition in the video gaming industry and lasted until now through its continual innovation. Nintendo’s current strategy is to offer affordable products which can be enjoyed by any age, gender or gaming experience. With the release of the Wii under this strategy, it has realized significant increases in revenue, operating income and net profit growth of 90%, 150% and 77%, respectively in 2006 over prior year. Internal analysis The main competitive element differentiating Nintendo from its competitors are: • Affordable price point with updated technology • In-house software development Strengths: • Talented engineering/management individual - video game mastermind and leader, Shigeru Miyamoto. • In-house software development capabilities mean they have the ability and flexibility to be creative, respond quickly to customer demands and trends. • Nintendo came up with this

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