Nintendo Company Ltd Essay

Nintendo Company Ltd .was founded in 1889 as a producer of Japanese vie cards, but by the 1980s the corporation had glowering its attention towards the production of word picture game hardw atomic number 18 and softw atomic number 18. Since then, Nintendo has at peace(p) on to become the third to the graduate(prenominal)-pitchedest degree valu satisfactory partnership in Japan selling more than 470 million home(a) game consoles and handhelds as of 2009. Nintendo was founded by Fusejiro Yamauchi the great grandfather of the current president of Nintendo. Nintendos products arose in the mid-1980s from the relative obscurity of the amusement arcade to change the concept of home amusement in both Japan and the United States.Strengths Nintendo strongly realised brands, robust revenue growth, strong cash flow from operations, and Nintendo derived most of its revenue from the video game business, Nintendo was in the lead in video console (pg.C269). Weakness Nintendo weakness is Inventory short matures.Nintendo was unable to meet indigence during 2007 and also struggled throughout 2008.In an interview on the website Game Theory, Perrin Kaplin, Nintendo frailness president of grocery storeing and corporate affairs, suggested that shortages were expected some time. We are at absolute maximum production and doing everything we stubbut request continues to be re completelyy high (pg.C273). AlsoOpportunities Rising demand for companys products and related software, growing US games software market, and increasing demand for online gaming. Threats Short products lifecycle, slowdown of the Japanese, the US, and European economies. The five dollar bill forces may be interdependent i.e. pressures from one direction can institution off changes in another dynamic process of shifting sources of aspiration. Industry rivalry here occurs in the strategic alliances i.e. dispute to look market. With huge tamperers like Sony, Nintendo and Microsoft there is a tuf f battle between companies to dominate the market.The threat of entrants into the industriousness can be negligible with the existence of players like Sony, Nintendo and Microsoft etc. There can be no substitute to the video games. The Power of Buyers in the video game industry is low as there are very few undefeated companies in the video game industry, therefore a small salmagundi 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 smattering of companies in the video game industry.Nintendos goal was to arrive at games that everyone could play and a system that would appeal to women and people who had never vie video games in the past (pg.c273). Nintendo used the three generic strategies general cost leadership, differentiation, and focus. Nintendos scheme was to attract and target all age groups also to make the Wii easy to use whether the player is skilled or a novice. Nintendo was succes sful at this schema because According to Nintendo, one of the blusher differences between 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 compete 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 make their consoles cheaper to manufacture. They can sell the base console at a profit while their competitors have to subsidize the retail price. It also gives Nintendo off the beaten track(predicate) more room to maneuver when it comes to using the price mechanism to eat up on that competition. Nintendo leave behin d be able to sustain their competitive wages if they lack in summate of product with a high demand. What Nintendo sine qua non to do is maintain their interpret so that it will be able to encumber up with their competitors and keep clientele. This is the problem they are having which is a high demand for product with low supply.I believe Nintendos strategy has goodish 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 lose clientele to other competitors. Some customers go great lengths for entertainment and some will pay any price to have it. Nintendo unavoidably to keep their ratings up along with the other companies that are competing and the only carriage to do that is to make sure t hat the products are available and the prices affordable.This was an interesting chance to work on and I hope I did a good job. I had no idea Nintendo was founded in 1889, I thought it invented in the 1980s. After reading this case I know that even the common companies sometime struggle in certain areas. I have a Nintendo Wii and even though I dont get to play it often but when I do its so ofttimes fun. The Nintendo Wii is definitely for all ages like it was mentioned in the case. From reading the case and doing enquiry online helped me learn 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 include a free game with the console which Sony and Microsoft does not provide. My opinion Nin tendo strategy has good intentions but to be the better competitor Nintendo needs all their areas to be strong especially their supply of products. Even if it means to guide more employees or outsource jobs to keep products in stock they should go that extra mile to keep their customers happy.