Preview

Nintendo Porters Five Forces

Good Essays
Open Document
Open Document
635 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Nintendo Porters Five Forces
12/6/2005
Strategic Computing and Communications Technology
Fall 2005

Individual requirement 2

Koji Murao (18468500)

Note
I intentionally focus on one industry, the game industry, for all the four reports and analyze the strategy of each player in conjunction with the news I chose. Focusing on one industry made me realize how much the strategic aspects that we have learned in the class are working to shape the industry dynamics.
News
Nintendo has joined forces with McDonald's to offer free wireless internet access in the US for its DS handheld games console. (BBC News, October 18, 2005, retrieved from http://news.bbc.co.uk/1/hi/technology/4353480.stm)

Analysis
This deal reflects a Nintendo’s strategy to 1) ramp up the network effect and 2) create a lock-in of game players who play games outside. One of the key features of Nintendo DS, a successful portable game device, is its Wi-Fi connectivity, which allows users to play games with other players online around the world.[i] The utility of such online gaming will increase as the number of game players increases. Therefore, the network effect plays an important role. “McDonald’s already offers wireless connection in many US restaurants, but charges a fee.”[ii] Nintendo is attempting to remove the barrier of game players to enter the online gaming world by paying a sum to the access point provider, Wayport, and providing free and safe proprietary Wi-Fi connection. Another important factor to ramp up the network effect in this case is the number of “Hotspots” where Wi-Fi connection is enabled. McDonald’s is one of the world’s most recognized restaurants, operating and franchising more than 30,000 local restaurants in 119 countries.[iii] It is a perfect partner of Nintendo in terms of boosting up the network effect.

Also the easy and free access to the online gaming service suggests that Nintendo is attempting to lock in game players. One of the characteristics of online gaming is that gamers tend
Continue Reading
View Writing Issues

You May Also Find These Documents Helpful

  • Satisfactory Essays

    Video Game Console and Nintendo
    • 297 Words
    • 2 Pages

    Video Game Console and Nintendo

    The Microsoft and Sony are competitors for Nintendo Wii. And Nintendo is doing pretty good compared to these companies.…

    • 297 Words
    • 2 Pages
    Satisfactory Essays
    Read More
  • Good Essays

    Home Video Game Industry
    • 1117 Words
    • 5 Pages

    Home Video Game Industry

    Nintendo provide cheapest, faster version of the console to the market, then strength on the software product such as games. The licensing program makes it possible strict control the…

    • 1117 Words
    • 5 Pages
    Good Essays
    Read More
  • Powerful Essays

    Nintendo Strategy
    • 4445 Words
    • 18 Pages

    Nintendo Strategy

    Nintendo Co. Ltd. is a longstanding member of the home entertainment software industry that has embarked on a mission to offer the highest quality products and services while treating their customers with attention, consideration and respect. Nintendo’s strategy thus far has been to take advantage of their video game development capabilities; nearly 60% of games sold by Nintendo are self developed. The innovative capabilities derived from various gaming platforms have allowed Nintendo to capitalize off of a series of attachment control devices. The biggest strength that Nintendo has is a strong brand name along with high returns. A well established brand name gives Nintendo an edge over its competitors. Nintendo is the only company that has managed to capitalize on both hardware and software components. The biggest opportunity for Nintendo is to incorporate themselves into the online gaming market due to short product life cycles. Nintendo maintains their competitive advantage through superior game and character development, for which it often owns the legal rights. In a technical comparison of the Wii against its major competitors, it is substantially outperformed in speed processing, memory, storage, networking, video output and multimedia output. If Nintendo wishes to maintain a competitive advantage, the niche market must be penetrated while maintaining the integrity of the Nintendo brand image. Nintendo Black would become a subsidiary company of Nintendo Co. Ltd. that will operate with a mission to specialize in advanced technological specifications to consoles that will compete with Microsoft and Sony. If the proper measures are taken then Nintendo has the opportunity to continue to position itself as an alternative to the gaming experience while increasing the level of competition for its rival companies with its subsidiary company.…

    • 4445 Words
    • 18 Pages
    Powerful Essays
    Read More
  • Better Essays

    case study report for Nintendo Wii
    • 885 Words
    • 4 Pages

    case study report for Nintendo Wii

    Opportunities: Players of all ages regardless of class, culture, and income with the gaming industry has more than the movie industries. With the gaming online more than homes will have a broadband internet so they are ready to buy and play the Nintendo products.…

    • 885 Words
    • 4 Pages
    Better Essays
    Read More
  • Powerful Essays

    How Did Nintendo Affect The World
    • 1677 Words
    • 7 Pages

    How Did Nintendo Affect The World

    Nintendo single-handedly revolutionized gaming forever and here’s how they did it. Nintendo has been known to be the king when it comes to the gaming industry. They have a long running history, and own many iconic characters in the world. You may wonder, how did they achieve this? Compared to their competitors, Nintendo constantly drives on easy to pick up and casual games. Unlike games nowadays, where the internet is prevalent, Nintendo shines in creating a social aspect when gaming, capitalizing on family friendly fun. In addition, Nintendo understands their game well, and this can be seen from the audience they market to. By targeting the casual gamers and their families, Nintendo can monopolise the casual gaming market and rule out the…

    • 1677 Words
    • 7 Pages
    Powerful Essays
    Read More
  • Powerful Essays

    Porters Five Forces
    • 936 Words
    • 4 Pages

    Porters Five Forces

    PESTEL ANALYSIS POLITICAL FACTORS/ CHINA | KEY DRIVERS | IMPACT ON KOYO JEANS | * Government interference | Threat | * Government stability | Opportunity | * High Government controlled financial institutions | Threat | ECONOMIC FACTORS /CHINA | KEY DRIVERS | IMPACT ON KOYO JEANS | * Level of disposable income | Opportunity | * Low Economic freedom index rating | Threat | * Low cost of labour | Opportunity | | | | | SOCIAL FACTORS /CHINA | KEY DRIVERS | IMPACT ON KOYO JEANS | * Peer-to-peer recommendation | Threat/opportunity | * Population/ Demographics e.g. Generation Y | Opportunity | * Concept of face | Opportunity | | | TECHNOLOGICAL FACTORS /CHINA | KEY DRIVERS | IMPACT ON KOYO JEANS | * Social media boom | Opportunity | * Marketing information system (IT) | Opportunity | * Changing communication technology | Threat/Opportunity | | | ENVIRONMENTAL FACTORS /CHINA | KEY DRIVERS | IMPACT ON KOYO JEANS | * Climate change | Threat | * Energy supplies | Threat /opportunity | * Air pollution | Threat/opportunity | | | LEGAL FACTORS /CHINA | KEY DRIVERS | IMPACT ON KOYO JEANS | * Employment laws | Threat | * Company laws | Threat | * Business regulations | Threat | | | | | POLITICAL FACTORS/ HONG-KONG | KEY DRIVERS | IMPACT ON KOYO JEANS | * Non-interventionist government | Opportunity | * Low or corruption free governance | Opportunity | *…

    • 936 Words
    • 4 Pages
    Powerful Essays
    Read More
  • Powerful Essays

    Swot Analysis for Nintendo
    • 1415 Words
    • 6 Pages

    Swot Analysis for Nintendo

    Nintendo’s strong brand name comes from about twenty-five years experience in the video gaming business. Not only do they have a strong presence in the console market but they…

    • 1415 Words
    • 6 Pages
    Powerful Essays
    Read More
  • Powerful Essays

    Accounting Exam Qual. Framework
    • 934 Words
    • 4 Pages

    Accounting Exam Qual. Framework

    - Industry analysis: What is the nature of industry and what does it mean for our decision at hand? (growth, mature, dying) Look for seasonality, recent industry trends, how prices are set in the industry (price follower or setter?), how influential we are on the industry, how do political, economical, social and technological factors affect the industry, any specific industry trends, and implications…

    • 934 Words
    • 4 Pages
    Powerful Essays
    Read More
  • Satisfactory Essays

    porters five forces
    • 495 Words
    • 2 Pages

    porters five forces

    Threat of New Entry: Obesity is a big problem in the United States which is becoming a government and healthcare issue. Weight Watchers has played a role in the development of a new national awareness of healthful eating, lifestyles changes, and weight control. Weight Watchers International had experienced it biggest threat mostly because of new competition and changes in technology. When the over the counter weightless drug launched it had a drastic effect on their market.…

    • 495 Words
    • 2 Pages
    Satisfactory Essays
    Read More
  • Good Essays

    Nintendo 3DS
    • 768 Words
    • 3 Pages

    Nintendo 3DS

    Nintendo 3DS is an ambitious product made by Nintendo company, which had been successfully sold in the worldwide market. It has a high ability to compete with its competitors ar the market, e.g. playstation vita product, or the new smartphones released. The company has sold for about 44.14 million of its product since the current days. Their main objective is to differentiate from their main competitors in the market in their unique way, e.g. developing games, which are specificly relevant to the to their brand.…

    • 768 Words
    • 3 Pages
    Good Essays
    Read More
  • Powerful Essays

    Nintendo Swot
    • 1283 Words
    • 6 Pages

    Nintendo Swot

    Nintendo’s strong brand name comes from about twenty-five years experience in the video gaming business. Not only do they have a strong presence in the console market but they are the leader in the handheld console market. They pioneered this market in 1989 with the original Game Boy. Since then, they have upgraded to create Game Boy Advanced and Nintendo DS, which sold 79.5 million units and 40.3 million units, respectively, in fiscal 2007. The Nintendo Wii, which is their most updated console, sold 5.84 million units in the first five months in its launch alone. This system consists of motion sensors attached to the end of the controllers as well as the console, which makes the games more interactive. A high percentage of the people that play video games in today’s day are college students.…

    • 1283 Words
    • 6 Pages
    Powerful Essays
    Read More
  • Best Essays

    Case Study Nintendo
    • 1742 Words
    • 6 Pages

    Case Study Nintendo

    For maintaining the similar momentum, the company must focus on enhancing its current system performance as well as other technical features of its system for henceforth releases. With change gears from the disruptive nature to more sustainable form, the company must identify ways to attract new customers or retain the existing customers towards its products. The company must keep on experimenting with innovations which target additional potential markets. The company is quite well-positioned for benefiting from prolonged success in video gaming industry based on several researches. Nintendo still has several considerations to explore prior to deciding how effectively maximize market share as well as…

    • 1742 Words
    • 6 Pages
    Best Essays
    Read More
  • Powerful Essays

    Gaming The Gamers Case Study
    • 1561 Words
    • 7 Pages

    Gaming The Gamers Case Study

    WebTel, one of the internet services providers in U.S., is looking for an opportunity to increase revenues coming from the gaming user segment. This segment is the main customer of the WebTel’s broadband internet services and spent $7 billion each year to the gaming industry that grows at an annual rate of 16 percent. WebTel aims to engage with this segment deeply by truly understanding their interests and priorities and get a share of the cake.…

    • 1561 Words
    • 7 Pages
    Powerful Essays
    Read More
  • Satisfactory Essays

    Nintendo Case Analysis
    • 474 Words
    • 2 Pages

    Nintendo Case Analysis

    With the introduction of the Nintendo Wii console, the company gained a stronghold as a leader in the video gaming industry. However, competitors Sony and Microsoft are quickly gaining on Nintendo’s competitive advantage, forcing the company to monitor and reevaluate its strategies. To maintain a competitive advantage, Nintendo must look toward influencing the customers of Sony and Microsoft, continue developing innovative…

    • 474 Words
    • 2 Pages
    Satisfactory Essays
    Read More
  • Good Essays

    Sega & Nintendo 5 Forces
    • 485 Words
    • 2 Pages

    Sega & Nintendo 5 Forces

    As explained by porter the five forces framework helps to identify the sources of competition in an industry/sector –(the competitive environment)…

    • 485 Words
    • 2 Pages
    Good Essays
    Read More

Related Topics