Background
Nintendo is a Japanese multinational video game company headquartered in Kyoto, Japan. The company was founded in 1889 by Fusajiro Yamauchi as a producer of handmade hanafuda playing cards. Nintendo eventually expanded into other areas, such as toys and board games, before entering the video game industry in the 1970s. Throughout the 1980s and 1990s, Nintendo was a dominant player in the video game industry, thanks to the success of its home consoles and iconic franchises like Super Mario and The Legend of Zelda. In the early 2000s, however, the company faced increased competition from other console makers like Sony and Microsoft, as well as the rise of mobile gaming.
Nintendo’s response to these challenges was to focus on innovation and differentiation. The company released the Nintendo DS in 2004, a handheld gaming device that featured dual screens and touch controls, and the Wii in 2006, a home console with a motion-controlled wand that allowed for more interactive gameplay. Both these devices were major successes and helped to revitalize the company’s business. More recently, Nintendo has continued to innovate with the release of the Nintendo Switch in 2017, a hybrid console that can be played both at home and on the go. The Switch has been a massive success, selling over 122 million units worldwide as of February 2023.
Nintendo’s business strategy also includes a focus on quality and customer satisfaction. The company is known for taking a long-term view on product development and is committed to delivering high-quality, family-friendly gaming experiences. This approach has helped to cultivate a loyal customer base and a positive brand reputation.
Strategic Challenges
Nintendo faces strong competition from other console makers, such as Sony and Microsoft, as well as more recently from mobile gaming. As the video game industry becomes more crowded, Nintendo must continue to differentiate itself and offer unique gaming experiences to stand out in the market. While Nintendo’s iconic franchises are major drivers of revenue, the company’s reliance on these franchises also presents a strategic challenge. Nintendo must continue to innovate within these franchises and develop new intellectual property to avoid becoming too dependent on a few key brands.
Nintendo has historically struggled to attract third-party developers to its platforms. This is because the company’s hardware and software platforms are often seen as more closed and less developer-friendly than those of competitors like Sony and Microsoft. Attracting more third- party developers could help Nintendo broaden its game library and attract a wider audience. In addition, while Nintendo has traditionally focused on the home console and handheld gaming markets, the company has recently begun to expand into new areas, such as mobile gaming and theme parks. This presents both opportunities and challenges, as Nintendo must adapt its business model and brand to succeed in these new areas. Overall, Nintendo’s business strategy has focused on innovation, differentiation, quality, and customer satisfaction. If the company is to continue to be a major player in the video game industry, they will need to find a way to address these complex strategic challenges.
Group 3: Presentation
Strategic issue: dependency on franchises or The strategic issue in the case of Nintendo can be identified as the company’s struggle to attract third-party developers to its platforms.Select one of Bolman and Deal’s frames to analyse the company/issue: Structural Frame- Analyse why use this FrameStrategic issue – Introduction and problem statement (300-400 words)Frame – Analyse Nitendo and frame (300-400 words)recommendations (200-300 words for each recommendation)
Presentation
Please complete the request in the table and each person needs to find at least 5 quality references and write report-style sections
