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SMMCG9[TP-2], Screen Shot 2020-05-15 at 12.04.28 PM, Screen Shot 2020-05…
SMMC
G9
[TP-2]
Key Partners
Key Resources & Capabilities
Key Activities
Competitive Advantage
Differentiation Strategy
Strategic Renewal
Development of Switch
History
Founded after the release of the Wii U in 2012
Cultural lifestyle and gaming
Development
Not focused on raw processing power
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Feedback
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Announcement
October 20, 2016
Nintendo revealed technical details of the Switch
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Failure of Wii U
Underpowered Hardware
Consoles
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Poor Launch Line Up
No attractive software
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Dated Controller
Single touch device
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Should have
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Expensive
Realizing
a
price advantage
:star:
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No Internal Hard Drive Storage
Flash memory
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Very simple
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Minimal Third-Party Support
Aging Nintendo games
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Unsuccessful game launch
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Weak sales
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Game Entertainment System
Proprietize the product
Development of Nintendo Entertainment System
Cost reduction on developing other system
Increasing brand reputation
Game franchise
relationships
Third-party games
Doom,Minecraft...
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Independent developers
Stardew Valley, Hallow Knight...
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Houshold game
Mario,Pokemon, Sonic...
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hardware product
consoles
product feature
resolution / DPI
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Portability
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Handhelds
Switch
Product feature
Combination advantages
from consoles and handhelds
Providing a better gaming experience
Successful result
Switch sells more than Wii U.
(32.27 vs 13.56 million)
Compare to income statement on 2016, Net income in 2017 rises 521%
Game Entertainment System
Providing variety of games
purchasing from past to now
Single selling platform
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Hardware
Less expensive consoles
Lower down the cost
Competitive price
Switch
Play at different modes
TV
Tablet
Handheld
Flexibility
Not only focus on professional players
EX: children → adults → the elderly
Attract more customers
User-friendly interface & Famous IP
Software
IP
Known by a lot of people
Super Mario
The Legend of Zelda
Pokemon
Development
New Switch Models
Next-generation system development
Product
Restricted Supply
Highlight The Rarity Of Products
:star:
Setting up security chips inside
Limit the number of games developed
Each of which must meet the standard set by Nintendo
The same game cannot appear on other console platforms within two years
Open a "virtual circle"
Exclusive Products
Innovation
Test the boundaries of the game industry
Continue to try innovative way of playing games
To be the most obvious evolution
Providing new gameplay
Let all players to enjoy the game
IP Expansion
Expand the reach of its IP
Increase revenues and profits
Decreasing Nintendo’s dependence on the Switch
:star:
Pursuing ways to incorporate IP with VR
Development of mobile games
Developing at least two new mobile games each year
Continuing with updates to current games
Dragalia Lost
:red_flag:
Pokemon Go
:red_flag:
Identification
Tangible Recources
Home consoles
handheld consoles
game software
Imagination of the brand
Innovation
Disruption
Revolution
Nintendo FC launched in 80's
Providing consoles for everyone
Key capability
Human resource management
Key profitability
The high creativity of hardware and software
Appraising
Gaining more potential to generate profits
Perfectly establish their competitive advantages at the beginning
Sustaining its competitive advantage in a long term (exception)
Solution
Cost leadership & Differentiation
Exploiting strength effectively
Minimizing weakness by implementing new strategy
Increasing the difficulty for imitation
Increasing the ability to envision future
Undertaking at the same time for some unexpected accidents
Others
LEGO
Develop a new product to promote each other
Feature :
→ LEGO Mario figure who collects coins in the game
Subsidiaries
America
Nintendo Software Technology (NST)
Software technology
Support of developing games and apps programs
Nintendo Technology Development (NTD)
video game console development
France
Nintendo European Research & Development(NERD)
Developing various software technologies
→ video compression
→ middleware
Japan
Nintendo Network Service Database(NSD)
Programming and server maintenance
Group Members
Anna
Phoebe
Pete
Adiyasa Gao
Fion
Levi
Jerry
