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SMMC_G9_TP_Final_Nintendo, Bargaining power of suppliers:Medium, Threat of…
SMMC_G9_TP_Final_Nintendo
Group Members
Anna
Phoebe
Pete
Adiyasa Gao
Fion
Levi
Jerry
Introduction
PESTEL
Five Forces Framework
Diversification
Suggestion
Innovation
Keep improving its products
Lower the cost on manufacturing
Differentiate its products from competitors
Spend on R&D
Competitive Advantage
Easy-to-use
Different modes
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Family-friendly
Target Audience
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IP Expansion
Co-brand
Mister Donut
Definition of Diversification
In 1993
Sekiryo Kaneda established the company as a general partnership titled Yamauchi Nintendo & Co. Ltd.
World War 2
negatively impacted the company
supported by a financial injection from Hiroshi's wife Michiko Inaba
In 1959
Nintendo entered into an agreement with Walt Disney
In 1961
The company had sold more than 1.5 million card packs
The company has embraced diversification since its earliest days
Rivalry among existing competitors
Dominated by Sony, Microsoft and Nintendo
Sony and Microsoft offerings more similar than Nintendo
Nintendo has a differentiated focus strategy
Considerable pressure for innovation, VR at the forefront at present
Threat of new entrants
Hardware (Video consoles)
Software (Games)
Threat of substitues
Threat from PC and Mobile technologies
Mobiles Threaten 3DS
Other forms of entertainment
Bargaining power of suppliers
Considerable bargaining power
Little chance of platform exclusivity for these games
Bargaining power of Buyers
Considerable bargaining power rests with the buyers
Buyers can easily change platforms with each generation released
A strong base of console owners
Five Force Analysis
Environmental
CSR
Report
2.Consumer Product Recycling/
Product Packaging
Logistics/Transportation
1.Employee Welfare and Well-Being
Legal
Trademarks
Nintendo®
Game Boy®
Super Mario Bros®
Super NES®
Copyrights
Types of Copyrights
software source code
executable code
visual display
game music, characters
hardware chip microcode
artwork and publications
Patents
hardware and software products
Independent Publishers,Licensees, Licensed Property Owners
third party publisher
use patented technology,
copyrights and trademark
property owners
movies,
television,
sports leagues
Technology
R& D
2017 Annual Report
$527 million
hardware and software
endeavors
Nintendo's
technology innovation
Wii U
(failure)
Dated Game Consoles
Underpowered
Hardware
Insufficient Internal
Hard Drive Storage
Wii
Consoles
motion sensing capability &
virtual consloes
on screen interaction
via gesture recognition
Switch
New Joy-Con remotes
right
an infra-red (IR) sensor
shapes, motions, and distance
"HD Rumble" vibration
precise sensations
motion-sensing ability
a virtual tool
Portable Game Consoles
Economic
Good reputation
People are willing to buy its products
Increase the production
Exceeding demand due to COVID-19
Lead to shortage in market
The company announces it'll start producing
Socio-cultural
COVID-19
Increasing Demand
Shortage of Nintendo Switch
Slowing down the export of manufacturing materials
Political
Major Markets
Europe
Japan
US
Politically Stable
Vision
change lives from customer
customer
Putting smiles on the faces
Reciprocity system
Customer first, profit second.
Everything it touches
Good employees makes better products.
Mission
attention
high quality
games for different kind of gamer
The Legend of Zelda
Pokemon
Super Mario
consideration
health and safety
Corporate Social Responsibility
environment-friendly techniques
production process
"green" procurement
respect
distinguished experience
better gaming experience
handheld
A better gaming environment for everywhere.
social
Gaming isn't an isolated activity.
Background
1889-1969
Toy industry
flower card industry
Invested in several business lines
Instant rice, love hotel, taxi service....
weren't successful
Cooperate with Disney in animated character cards
Create more value than other card industry
become a mainstream company
1969-present
Electronics & gaming industry
hardware
Resolution / DPI
Providing a better gaming experience.
Portability
Convenience for people playing everywhere.
software
Game Entertainment System
Proprietize the product
Development of Nintendo Entertainment System
Cost reduction on developing other system
Increasing brand reputation
Games
variety
multiple games to choose
Houshold game
Third-party games
Independent developers
difficulty
different difficulty for players to choose
social connection
Play with friends and have a better gaming experience
Bargaining power of suppliers:Medium
Rivalry among existing competitors:High
Bargaining power of Buyers:High
Threat of new entrants:Low
Threat of substitutes:High
