Nintendo Company Ltd Essay

Nintendo Company Ltd .was founded in 1889 as a producer of lacquerese beting cards, but by the 1980s the corporation had turned its attending towards the mathematical production of impression game hardware and software. Since then, Nintendo has gone on to become the third most valuable company in Japan selling much than than 470 million home game stor sequence lockers and handhelds as of 2009. Nintendo was founded by Fusejiro Yamauchi the great grandfather of the current chairwoman of Nintendo. Nintendos products arose in the mid-1980s from the congener obscurity of the amusement arcade to change the concept of home enjoyment in both Japan and the United States.Strengths Nintendo strongly established brands, robust gross growth, strong cash f modest from operations, and Nintendo derived most of its r eveue from the image game business, Nintendo was in the lead in video console (pg.C269). Weakness Nintendo weakness is Inventory shortages.Nintendo was unable to meet postul ate during 2007 and overly struggled throughout 2008.In an interview on the website Game Theory, Perrin Kaplin, Nintendo vice president of foodstuffing and corporate affairs, suggested that shortages were expected roughly time. We are at absolute maximum production and doing everything we canbut demand continues to be really broad(prenominal) (pg.C273). AlsoOpportunities Rising demand for companys products and related software, growing US games software market, and change magnitude demand for online gaming. Threats Short products lifecycle, slowdown of the Japanese, the US, and European economies. The five forces may be interdependent i.e. pressures from one direction can trigger come to changes in another dynamic process of shifting sources of competition. effort rivalry here occurs in the strategic alliances i.e. battle to control market. With huge players like Sony, Nintendo and Microsoft there is a tuff battle surrounded by companies to dominate the market.The threat of entrants into the industry can be minimum with the existence of players like Sony, Nintendo and Microsoft etc. There can be no counterchange to the video games. The Power of Buyers in the video game industry is low as there are very few successful companies in the video game industry, therefore a small variety of video games available to the buyers. On the other hand, the Power of Suppliers is very high as there are more suppliers available to a handful of companies in the video game industry.Nintendos goal was to create games that everyone could play and a system that would appeal to women and people who had never played video games in the past (pg.c273). Nintendo used the three generic strategies overall toll leadership, differentiation, and focus. Nintendos strategy was to attract and target all age groups overly to fox the Wii easy to use whether the player is skilled or a novice. Nintendo was successful at this strategy because According to Nintendo, one of the key differ ences betwixt the Wii and the competitiors systems was the broad audience that the Wii targeted (pg.c273).Many of the Wii games were able to be played by all people of all ages, and they were easier to control than the complicated controllers of the Sony Playstation 3 or Microsoft Xbox 360. Nintendos TV commercials of the Wii showed people of different ages and social classes playing the Wii (pg.c273). Yes I believe all companies can use the strategy of attracting all age brackets with unique products that are easy, fun to use, and affordable.The Nintendo competitive strategy are that the ca-ca their consoles cheaper to manufacture. They can sell the base console at a realise while their competitors have to subsidize the retail price. It also gives Nintendo out-of-the-way(prenominal) more room to maneuver when it comes to using the price mechanism to take on that competition. Nintendo will be able to sustain their competitive advantage if they need in supply of product with a h igh demand. What Nintendo need to do is maintain their supply so that it will be able to clutches up with their competitors and oblige clientele. This is the problem they are having which is a high demand for product with low supply.I believe Nintendos strategy has broad(a) intentions, if I was in position to advise Nintendo of their strategy is will be to change is their supply and demand. If you have a low supply of product how do you expect to make profit? I would advise them to make sure that there is a high supply of products to keep customers happy because there is a great possibility that the company can fall back clientele to other competitors. Some customers go great lengths for entertainment and some will pay any price to have it. Nintendo needs to keep their ratings up along with the other companies that are competing and the only way to do that is to make sure that the products are available and the prices affordable.This was an interesting case to ready on and I ho pe I did a vertical job. I had no idea Nintendo was founded in 1889, I thought it invented in the 1980s. later reading this case I know that even the popular companies sometime struggle in certain areas. I have a Nintendo Wii and even though I dont get to play it oftentimes but when I do its so much fun. The Nintendo Wii is emphatically for all ages like it was mentioned in the case. From reading the case and doing research online helped me settle about how Nintendo was founded and their timeline of products.I learned about their rivalry with Sony, Microsoft, and their struggles with supply and high demand. How However Nintendo Wii price was reasonable compared to the playstation3 and xbox. I believe what attracts customers to the Nintendo Wii is that as far as I can remember Nintendo always included a free game with the console which Sony and Microsoft does not provide. My opinion Nintendo strategy has good intentions but to be the better competitor Nintendo needs all their a reas to be strong especially their supply of products. Even if it means to hire more employees or outsource jobs to keep products in stock they should go that exceptional mile to keep their customers happy.