Swot nintendo
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Transcript of Swot nintendo
NintendoSWOT Analysis
Lionel BenoilidThursday 6th December 2012
As a card company (1889–1963)
Founded as a playing card company in late 1889 By Hiroshi Yamauchi Based in Kyoto, Japan Means “leave luck to heaven” Produced and marketed playing cards Put Disney characters in playing cards Became leader
History Market SWOT Recommendations Conclusion
New ventures (1963–1974)
From 1963 to 68, Nintendo set up› Taxi company› Food company› Love hotel chain› TV network› Toy market
Failed
History Market SWOT Recommendations Conclusion
Electronic era (since 1974) First venture in the video game industry Produced it’s own hardware in 77: the color TV
Game 81: Donkey kong Huge boost in profits 85: Nintendo Entertainment System (NES)
61 Million units, retired in 95
Home consoles: Super NES, N64, GameCube, WiiPortable consoles: Gameboy(s), Nintendo DS.
History Market SWOT Recommendations Conclusion
Background
Video game console industry› $10 Billion per year
Nintendo› First console: 1985
First mover Current market
› Nintendo (Wii: 1st), Microsoft (Xbox 360: 2nd), Sony (PS3 : 3rd).
History Market SWOT Recommendations Conclusion
Segmentation
Technological Segment
Sociological Segment
History Market SWOT Recommendations Conclusion
Porter five forces analysis
Competition
Entry barriers
Buyers
Substitutes
Suppliers
History Market SWOT Recommendations Conclusion
Typical life cycle
Introduction Growth Maturity Decline
X
Current Console Market
History Market SWOT Recommendations Conclusion
Individual game console cycleGrowth
(Early market saturation)
Maturity
(Full saturation, R&D begins on next generation)
Decline
(Introduction of new, phase out of
old)
Introduction
(Innovators/Early Adopters)
5-year Period (Average)
History Market SWOT Recommendations Conclusion
Game console life cycle trend
‘05-’12
Introduction Growth Maturity Decline
NES
SNES
N64
Game Cube
’85-’89 ’89-’95 ’95-’98 ’98-’05
Wii
History Market SWOT Recommendations Conclusion
1985 – 1989: The Beginning
Players: Nintendo (NES), Sega (MS) Nintendo market share: 90% Large success attributed to the
popularity of the Super Mario Bros game.85 - 89
History Market SWOT Recommendations Conclusion
1989 – 1995: The 16-bit Generation
Sega creates the Megadrive console to steal Nintendo market share.The Megadrive is superior in all areas:
Better graphics Longer/complex games More buttons Nintendo market share: 60%
89 - 95
History Market SWOT Recommendations Conclusion
1995 – 1998: Dawn of the PlayStation Players: Nintendo (N64), Sony (PS), Sega
(Saturn) Nintendo responded too lately
› Nintendo’s slogan became “Is it worth the wait? Only if you want the best!”
Pirate Nintendo market share: 23%
95 - 98
History Market SWOT Recommendations Conclusion
1998 – 2005: 128-bit and Beyond
Players: Sega (DC), Sony (PS2), Nintendo (GC), Microsoft (Xbox)
Nintendo limited its target audience. Nintendo market share: 14%98 - 05
History Market SWOT Recommendations Conclusion
2005 - 2012: Online era
Players: Nintendo (WII), Sony (PS3), Microsoft (Xbox 360)
First mover: Microsoft Nintendo market share: 48%
05 - 12
Wii
History Market SWOT Recommendations Conclusion
Nintendo's Market Share
90%
23%
14%
60%
1989 1995 1998 2006 2012
48%
History Market SWOT Recommendations Conclusion
Nintendo’s current proposition : Wii
Simple and cheap Focuses on what matters in having fun From pushing buttons to moving body Something more than game
History Market SWOT Recommendations Conclusion
Strengths Weaknesses
Opportunities Threats
Strengths Currently has the lion’s share of the market in consoles
› 48% of the market› Software market
Owns popular properties › Super Mario Bros. and Donkey kong
History of innovative gaming technology› First in the market › Created a new way of gaming
History Market SWOT Recommendations Conclusion
Strengths
Weaknesses
Opportunities Threats
Strengths Built a lot of brand equity over the past 30 years
› Sold more than 300 Million consoles› Sold 2.2 billion games
Captures a broader public
Gaming focus
History Market SWOT Recommendations Conclusion
Weaknesses Popularity of the Wii seems to have peaked
› Since 2011 sales have plummeted (earlier than competition) Doesn’t appeal to serious gamers
› Considered as a toy› Not known for sophisticated graphics› Not technologically good enough compared to competition
Strengths
Weaknesses
Opportunities Threats
History Market SWOT Recommendations Conclusion
Weaknesses The hierarchical nature of the company may cause it to not
respond quickly enough to the threats› Too hierarchical
Limited options in online gaming› Sony and Microsoft have created an online hub
Strengths
Weaknesses
Opportunities Threats
History Market SWOT Recommendations Conclusion
Capabilities based on Strengths & Weaknesses
Wii + Internet
Reduce business risk› Use global presence and geographical diversification› Reduce dependency on suppliers
Balance hardware and software focus
Appeal to serious gamers› Diversify range › Sophisticated graphics
History Market SWOT Recommendations Conclusion
Opportunities Expend demographics A large number of current Wii owners
› backwards compatibility of the new game will promote adoption by these users
Strengths
Weaknesses
Opportunities Threats
History Market SWOT Recommendations Conclusion
Opportunities Get the infrastructure better
› Home networking› Entertainment delivery technologies
Increase video game technology› Brain wave technology› holography
Strengths
Weaknesses
Opportunities Threats
History Market SWOT Recommendations Conclusion
Threats Online gaming continues to expand and Nintendo isn’t part
of it Competition: Some projects are going to cut into wii’s
market share.› Social networking games› Project Natal (Microsoft): Same technology / Same concept
Strengths
Weaknesses
Opportunities
Threats
History Market SWOT Recommendations Conclusion
Threats
Substitutes:› Popular devices like the iPad are migrating gaming away from
consoles and computers The console market is approaching saturation
› 60 million units of the current generation sold (Xbox 360, PS3, Wii)
Strengths
Weaknesses
Opportunities
Threats
History Market SWOT Recommendations Conclusion
Actions based on Opportunities & Threats
Cater to a wider public Focus on Online gaming segment Incorporate Social Networking games Target ‘mobile’ gaming segment Integrate Wii with basic activities (Extend
offering like Wii Fit) Manage shorter product lifecycle efficiency
History Market SWOT Recommendations Conclusion
Nintendo’s strategy
Spread consoles› Even if it’s for a low price› Will earn on games
Low communication› Strength of brand› Half the price of Microsoft
No subcontractor› Trust it’s own creativity
History Market SWOT Recommendations Conclusion
SWOT
- Unique and innovative products- Brand reputation and recognition
- Limited options in online gaming- Doesn’t appeal to serious gamers
- Expend demographics- Increase video game technology
- Substitutes- Competition
History Market SWOT Recommendations Conclusion
Three main recommendations
Cater to a wider public
Focus on Online gaming segment
Develop partnerships to introduce the next generation
History Market SWOT Recommendations Conclusion
Thank you for listening