To date, Nintendo has sold more than one billion video games and created so many game console including Game Boy - The best selling video game systemgame systems worldwide. 1. What is Nintendo’s strategy? Which of the five generic strategies discussed in Chapter 5 is Nintendo using? What are some of the recent offensive and/or defensive strategies that Nintendo has employed? Have these tactics been successful? Nintendo's strategy is based on the customer premise, when other business-to-video game market has yet to be waited and see attitude, and Nintendo in the market demand for in-depth study, the firm entered the field.
Nintendo was on the market only a profound understanding of the needs of customers’ game manufacturers. Because it can from the "customer needs is the fun of the game" This perspective of looking at problems, Nintendo game software was first recognized that the decisive position. This policy eventually develop into a Nintendo game software developers and strategic alliances to achieve this status, Nintendo has played a key role.
After have a "Nintendo Power" books and "counselors systems" scheme, which are a combination of the two major consumers and Nintendo's sticky and agents, but also Nintendo's main method to grasp the pulse of customers. In fact, the Nintendo Company's product development plans and marketing strategies is almost entirely dependent from the customer information. We come up the idea that :The broad differentiation strategy is the newly products of Nintendo's had generic used ,particularly for Wii ,the broad differentiation strategy that allowed Nintendo to compete with two giant Sony and Microsoft.
Nintendo had focus on innovative control system,that leads to rising the fun level of games,instead of to attempting to catch up with the functional advantage concentrated by most competition in game industry . Nintendo focused on developing games and take their Key advantage – gaming fun to winning the battle of game industry. Recently, Nintendo has carried out some offensive strategies to resist with rivals and gain more market share. The company aimed to innovating products and introducing some of the industry’s most astoundingly inventive and financially lucrative gaming products.
For instance, Nintendo introduced the Nintendo Dual Screen in 2004. The DS Lite was introduced in 2006 and Wii was introduced in 2008. Nintendo does a number of advertisements with creative advertisement, what make deeply impression on customers. Through the magazines, the company releases the products and attracts game players. Nintendo also has some defensive strategies. Rivals like Sony and Microsoft were calling attention to an assortment of technological capabilities and graphic features in their consoles.
Nintendo’s two system including video game consoles and handheld system with light weight electronic devices and designed largely. Rivals required a part of target market. According to this situation, Nintendo attract older people and women as a new market to make sure the sales and reputation for the company. 2. Is it fair to characterize Nintendo’s introduction of the Wii as a blue ocean strategy? Why or why not? Yes,there’s a pure blue ocean strategy initiated in the Nintendo’s Wii,but the Wii’s introduction strategy can not necessarily be characterize as a blue ocean strategy that we considered.
Wii’s introduction demonstrated is successful executed the Blue Ocean Strategy,that driven point is the unique interactive “motion-sensitive” controls,it based on an innovative gaming control system can sense movements and physical activity, gamers should to physically move around to guide the game character,this is an differentiate experience with instinct usability that may rising the fun of gaming,and creating an accessibility for every player of all ages and genders .
This new values are created and focused by Wii which instead of the performance value defined by the industry. it allowed Wii to not only compete in the game console industry’s “red ocean” where has been dominated by Sony's PlayStation and Microsoft's Xbox, but also to went after an untapped market,For consumers who are not consider as the typical gamers,as older females, seniors,who never think about gaming,even who consider gaming as a waste of time. it purpose at the entire family. so it as the allegory of name “wii”’s intended, we- everyone can enjoy it.
Wii are also competitive to appealing the traditionally customer targeted by the games industry,we come up the opinion that the blue ocean strategy can reinforcing the competitive strategy acts as a supporting board differention competitive. Wii’s make games for a different purpose,In assessing the standard relative to Microsoft’s Xbox 360, and Sony’s PlayStation 3, and other developers , Wii‘s functional elements as graphics & physics, processing power ,and supporting function (as Movie playing) are relatively rare . owever it good-enough for moderate gamer,but their virtual controling raising gaming fun to a higher level ,that helps maintained its core gaming audience while aslo their purpose to changing the “couch-potato”gamer to into exerciser. As a matter of fact, Sony nor Microsoft try to imitated the Wii’s contoling function. to lure away Wii's new customer. All above evidence that it is almost self-explanatory the sucess for Wii’s blue ocean strategy’s. 3. What recommendations would you make to Nintendo to improve its competitiveness in the video game console industry and to maintain its favorable positioning vis-a-vis Microsoft and Sony?
Our first recommendation is developing in the competition area that different from Microsoft and Sony. As we know, the main product of Microsoft and Sony is Xbox 360 and Playstation 3. Xbox 360 can mainly fight and talk by the network. PS 3 mainly in high-definition video and audio quality as the characteristics. Therefore, we think Nintendo should be developed in other areas, such as game’s own characterized. They can develop some games that more suitable for players, life and era such as the classic Super Mario, Tetris and other games.
Our second recommendations is developing more perfect handheld video game console. Because as Microsoft and Sony’s main game product are Home video game consoles. Many people know Nintendo is because of their product Game Boy. And more young people today do not like to play games at home, they are more like in the car, in the bedroom, or in other free time to relax. So, handheld game consoles is still a huge market, but also because Nintendo has the foundation of Game Boy. So in this regard the development and the customer base is inevitable better than the other competitors.
Our third recommendation is to improve the skill of visual quality. What is the value of a game? Obviously, the main the player seeks for is the gameplay, is the creative point of a game that itself has. For this part the Nintendo make a good sense. Nintendo's success lies in change and subversion of tradition. But, with the booming technology, the players who are familiar with Maya, 3DMAX are also pay high attention to the quality of the visual. Compare with Sony and Microsoft, Nintendo do not spend so much technology dealing with visual.
However, the decoration of a game system such like visual and sound also will be a big attraction. People always enjoy a sense of realism. So if it wants to get a long-term development, it also needs to improve its visual skill even though Nintendo do not rely on visual to win the profit. Our final recommendation is expansion of market in China. As we see, China who has large number of population can be a Potential Unit for almost all industry, of cause for game. It can be a good market for Nintendo we believe.
To extend the Chinese market, Nintendo can consider about increasing the Chinese language interface to get closer to Chinese people. They also need to offer a good after sale service in china. We recognize that the after sale service of Nintendo in Asia except Japan is limited. In order to fit the China's specific conditions, Nintendo can introduce more educational and recreational games and let the parents willing to buy. In a word, making more efforts in these recommendations, Nintendo may have a long term development in the future we believe.