Thomas COLLET – Aureline THOORIS Cohort B

• Japanese multinational corporation. • Market proposition : electronics and

softwares• Founded in 1889 by Fusajiro Yamauchi. • Market value: $85 billion. • Current capital : 10 065 400 000 yen. • Headquarters : Kyoto, Japan.

The company

• Currently the most valuable company in Japan, behind the automaker Toyota Motor Corp and Mitsubishi Financial Group.

STRENGTH• Low upfront costs• World cultural icon• Big experience in Video-

Games industry• Shigeru Miyamoto is a

reference about Video-games.

• Successful gaming model with family

WEAKNESS• Brand perceived as kid

toy or for casual gamer• Limited selection of

hardcore video-games• The power of console• The lose of Shigeru

Miyamoto who is a reference

OPPORTUNITES• First company which

introduce motion technology in video-games

• A sector with lot of innovation

• Variety of lot of gaming platforms

• Design games for beginner and casual player as seniors or adults

THREATS• Apple which become

bigger thanks to smartphone video-games

• Facebook which become bigger thanks to social media video-games for casual players

• Loss of potential customer due to limited hardcore games

SWOT

• First objectif of Nintendo is to distribute as much as possible its consoles.

• Second strategy is to do minimal advertising in playing on its reputation.

• Third strategy is to be focus on creativity.

3 strategies

Competitor Playstation

XboxMicrosoft

Pocket consol

Threat of New entryMobiles phones productorsApplication (phone/tablette)

Buyer PowerHypermarket

Multispecialists

Threat of substitutionComputer

Online video-gamesSmartphone

Supplier powerComponents from

Asia

Porter's five forces

• Launch in 2006. • Simultaneous competitors’ products launched the same year :• Launch of the PlayStation 3• Launch of the Xbox 360

Was the Wii console part of a Blue Ocean Strategy ?

Price : Wii is 30-40% cheaperCPU Power : Wii has low processor speedStorage : Wii has no hard diskDefinition : Wii has low definition (+- PS2) DVD : Wii is not compatible with DVD lecture. Connectivity : Wii not possible to have online multiplayer function (Xbox +)Motion controllable : Wii ++ because of its innovation motion control.Unique gameplay : Wii unique experience. Famility oriented : Only Wii is large public oriented.

Also, the Wii console create WiiWare, a download numeric service that offer to its users a multitude of online accessable instead of buying video games like for Xbox 360 or PS3.

Competitive advantage : Wii x Xbox 360 x Playstation 3

Wii Xbox PS 3

Price - + +

CPU Power - + +

Storage - + +

Video definition - + +

DVD lecturer No Yes Yes

Online connectivity No Yes Yes

Motion controllable + - -

Unique gameplay + - -

Family oriented + - -

Online games + - -

Wii console breaks the codes by being at every time different to its competitors.

Competitive advantages :A console rethinking with new featuresAnd a new way to consume video games

(Wii ware)In order to create a unique real-virtual

experienceOpen to all gamers either hardcore and

casual, non-gamers and new targets like women and very young children. (democratization of the video game experience).

Competitive advantage : Wii x Xbox 360 x Playstation 3

Ninento Microsoft Xbox Sony PlayStation

Past Total success of the Wii Xbox 360 was a success for serious gamers.

PS2 was a success but not PS3 was a failure because it was inappropriate .

Currently Expansion of the gamers community.Creation of the real-virtual experience. BLUE OCEAN

Own the serious gamers segment. Offer multiple games (8 per year)

Bad brand entity.Bad communciation. (vs Xbox 360)

Future PENETRATE TO THE BLUE OCEAN

Wii U, Wii X .. Staying on the same strategy

Improving the real-virtual experience (no controllers, series of sensors).

Copying Nintendo real-virtual experience (new devices/controller)

Was the Wii console part of a Blue Ocean Strategy ?

• Not a blue ocean strategy • Did not create a new demand (only on gamer)• The product did not attract gamers• Misunderstood of the new console• Sony and Microsoft present on the market

Is Nintendo using a Blue Ocean Strategy with its WII U?

• Nintendo NX: a new platform alongside the DeNA venture

• Create games to play in groups (family, frinds)

• High visual quality

After Nintendo Wii

• The world's largest firm on the worldwide market, behind Activisition Blizzard, Electronic Arts and Sony.

Competition

Profitability