8/3/2019 Nintendo Final

1/4

1

WarwickB usiness School

27th January 2012

Alex Hall

Richard MakarovMartin Stoeckl

Olga Shekhireva

Karan Parikh WarwickBusiness School

1. Nintendo

2. History path

3. Blue Ocean

4. Facts & Figures

5. Change of philosophy

6. Triggers

7. New strategy

8. Concerns & Conclusion

Agenda

WarwickB usiness School

Nintendo

Nin Te Ndo means "leave luck to heaven"

Since 1889 produced

playing cards

Hanafuda

NES

Wii

GameBoy

DS

Mario WarwickBusiness School

Through the highs and lows

1889 1985 1996

NES Nintendo 64

2004

Nintendo DS

2006

WII

S

uccess

8/3/2019 Nintendo Final

2/4

2

WarwickB usiness School

Swimming in the BLUE OCEAN

VS.

WarwickBusiness School

Facts & Figures

Source:Datamonitor: TheVideo Gaming Industry Outlook2011

WarwickB usiness School

Hardware characteristics

Positioning of major current generation consoles Comparative ranking between major video gameconsoles

Source:Datamonitor: TheVideo Gaming Industry Outlook2011

WarwickBusiness School

Software dominance

Rank Game Console Pub lisher Shipments (m)1 Wii Sports Wii Nintendo 16.6

2 New Super Mario Bros. Wii Nintendo 11.3

3 Sport Resort Wii Nintendo 11.2

4 Call of Duty: Black Ops X360 Activision* 10.2

5 Wii Fit Plus Wii Nintendo 8.9

6 Call of Duty: Black Ops PS3 Activision* 8.1

7 Halo: Reach X360 Microsoft 7.6

8 Kinect Adventures! X360 Microsoft 7.29 P ok m on Heart G ol d / S oul S il ver Ve rs ion DS Ni nt endo 6 .4

10 Super Mario Galaxy 2 Wii Nintendo 6.1

11 Mario Kart Wii Wii Nintendo 5.2

12 Pokmon Black / White Version DS Nintendo 5

13 Gran Turismo 5 PS3 Sony 4.9

14 Just Dance 2 Wii Ubisoft 4.9

15 Wii Party Wii Nintendo 4.7

16 Just Dance Wii Ubisoft 4.5

Source:Datamonitor: TheVideo Gaming Industry Outlook2011

8/3/2019 Nintendo Final

3/4

3

WarwickB usiness School

From Follower to Leader

Follower Leader

Internal & ExternalTriggers for Change

StrategyImplications

Critical Discussion

Why did they change?

What did they change?

A managerialsuccess story?

WarwickBusiness School

Triggers

NewStrategyInternal External

WarwickB usiness School

New Strategy

Triggers

Market

Success

TargetAudience

Reduce Costs

Easy to Use

Innovation

MarketingGame

development

Supply

chainTechnology

(Peripheres)

Nintendo DS Nintendo 3DS

Nintendo Wii Nintendo Wii U

WarwickBusiness School

A managerial success story?

Very high risk approach fallback option?

Crisis as only trigger whats their position now?

What should they do now?

A newcrisis?

8/3/2019 Nintendo Final

4/4

4

WarwickB usiness School

Questions?