Instructor: Jessie Bellflowers
March 18, 2014
Chap 6 – W.A
Question 1) Does it appear that Nintendo relies more heavily on offensive or defensive strategies as it competes in the video game industry? Has Nintendo's timing of strategic moves made it an early mover or a fast follower? Could Nintendo's introduction of the Wii be characterized as a blue ocean strategy? You may rely on your knowledge of the video game industry and information provided at Nintendo's investor relations website (www.nintendo.com) to provide justification for your answers to the question.
Answer: Nintendo Co., Ltd. is a Japanese multinational consumer electronics company that is mainly engaged in the development, manufacture and sale of entertainment products in home entertainment field. The firm became a famous video console company since its inception in the early 1980s. As so often the case with thriving companies, starting from the late 90s, Nintendo lost its dominance because of its stiff competition with other companies particularly direct market share competition from Microsoft Corporation, Sony Corporation and of Activision Blizzard, Inc. Based on Internet research on the subject, mentioned was made that as the firm competes in the video game industry, Nintendo relies more heavily on offensive strategies. This is particularly proven by the company when it implemented an aggressive marketing plan revolving in the message “We would like to play.” It’s timing of strategic moves, on the other hand, made it a fast follower. The video game industry went from boom to bust to boom business. It was Nintendo that rekindled the interest and restored market order. In addition, Nintendo’s introduction of the Wii could be characterized as a blue ocean strategy. A blue ocean strategy is a business strategy that suggests that an organization should be able to create a new demand in an uncontested market space. Nintendo shows that it is competing on a different...