Nintendo Wii Case Study

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Nintendo Co., Ltd Case Analysis BUSN412 Business Policy September 18, 2011 COMPANY NAME: Nintendo Co., Ltd. INDUSTRY: Technology and Communication COMPANY WEBSITE: www.nintendo.com COMPANY BACKGROUND: Nintendo Co. Ltd is a Japan based company, formerly known as Nintendo Playing Card Co., Ltd which was founded in 1889 by Fusajiro Yamauchi. The company underwent a name change in 1963. Currently, the CEO of Nintendo Co., Ltd is Satoru Iwata. For the period ending June 30 2010, Nintendo had revenue of $11.98 billion and net income of $1.01 billion (Yahoo Finance 2011). The case study concentrated largely on the launch of the Nintendo Wii. Over the last four years Nintendo has sold over 30 million consoles worldwide and captured previously untapped markets reclaiming their position as a top competitor in the industry (Benedetti, W., 2010). SWOT ANALYSIS Strengths: Nintendo has four main strengths: mover advantage, strong brand name, customer loyalty, and a broad appeal. Nintendo was able to enter the market with intuitive and streamlined motion-sensing technologies which captured the hearts of many generations and saved a failing company. Weaknesses: Since Nintendo are not technology based, they rely on many outside suppliers and manufacturers to provide the parts for the systems, more so than their rivals. Their manufacturing and warehouse process is greatly dependent on these third parties. With regard to the Wii, it is lacking some core features, such as high quality graphics, high definition viewing, and a strong online network. Opportunities: Wii was the only console on the market which was turning a profit. According to Forbes, the Nintendo Wii is averaging $6 profit per unit sold, which has amounted to roughly$180 Million in revenue for the company (Schoenberger, C., 2008). Although recently Nintendo has not been able to compete on a

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