some thoughts on case 1: nintendo's disruptive strategy

View previous topic View next topic Go down

some thoughts on case 1: nintendo's disruptive strategy

Post  lanling on Sun Sep 04, 2011 2:01 am

With the introduction of an unprecedented console Wii and a series of brand-new games, Nintendo, the former leader in video game industry, has made a perfect comeback and recaptured the leading position. For other players in video game industry, it is evident that following routine right practices won’t help them out of the difficult situation.

First of all, a new fundamental busines strategy needs to be formulated. Foucsing on existing gamers has proved to be insufficient to deal with Nintendo’s Wii.

In terms of business operation, they should gradually abandon the traditonal profitability model of selling consles at great losses to seize the market and making a profit on non-proprietary game titles developed by third-party. Merger and aquistion is a shortcut to gain the capability of develop games in-house and boost earnings on sales of propietary titles.

Software-wise, contents has always been a crucial and dicisive factor in marketing consoles. The competitors of Nintendo should adopt the software-to-harware approach, putting games rather than console on the top of R&D priority list. Hardware-wise, the next generation of console should be easy to use and dosen’t have to utilize those costly cutting-edge technologies. More emphasis shold be put on the interactivity and real-life features.

The battle has begun, but it remains to be seen whether a new round of comeback will be staged.

lanling

Posts : 1
Join date : 2011-09-01

View user profile

Back to top Go down

Re: some thoughts on case 1: nintendo's disruptive strategy

Post  Aimee on Mon Sep 05, 2011 11:57 am

I also suspect the efficiency of traditional profitability model. Although it's worldwide strategy for IT industry to sell hardware at low price and earn a lot with software property right. It becomes more and more difficult to maintain customer royalty. From teenage to mid-age, lots of persons have got the capability to create interesting software and share it free through internet. Furthermore, hackers always like to take challenges to decrypt protected content. So it's necessary for Sony and Microsoft to innovate a business model rather than simply copy Nintendo's.

Software-wise should be treated separately. Some of professional players have indulged in challenges. Some of players seem portable game machine as relax instrument, reading book, listening music or watching video. Others non-player treat it as poison who'd rather spend life in working and learning. Providing all these potential requests, to diverse the R&D content would bring more revenue.

Hardware-wise is a coin with two sides. Technology may complex operating method or simplify controlling process. From a long-term point of view, it's always correct to chase something fresh and mysterious. Besides, we shouldn't neglect the threat from new competitors. High profit of Wii has definitely attracted other investors. Nintendo might be hurted by its imitation, especially in China.

Everything is comprehensive in market economy. Potential new entrants, threat from vendor, funny substitute and customer's bargain capability would have great effect in this coming battle.

Aimee

Posts : 4
Join date : 2011-09-05

View user profile

Back to top Go down

Re: some thoughts on case 1: nintendo's disruptive strategy

Post  Luo Jian on Thu Sep 08, 2011 1:28 pm

Nintendo although can grasp the business opportunities and become leader in the video game industry using its innovative ideas to adapt to market changes. However it does not mean its action would leave the competitors in the cold. Simply speaking, if its competitors pay more attention to the innovation of existing ideas, design a more widespread product, offer more and more free charge or qualified service then every competitors would become leader one day. Because the market is changing, consumer preferences are also changing. Only prepare in advance could survive and lead the video game industry to new victory.


Luo Jian

Posts : 5
Join date : 2011-09-01

View user profile

Back to top Go down

Re: some thoughts on case 1: nintendo's disruptive strategy

Post  2011962875 on Thu Sep 08, 2011 10:08 pm

From this case, we can see once Nintendo's disruptive strategy was successful applied , Nintendo can keep dominant positon in the video game industry during the following several years. so that disruptive strategy not only boost Nintendo's sales but also bring Nintendo company from normal good level organization to excellent level organization, which can possible let organizaiton achieve cost-effect during the market competiton. And excellent organization have the capability of self-consciousness, very clearly know what kinds of leader and what kinds of leadership is suitable when Nintendo lost the dominant position and new diruptive strategy based on the deep insight into the video game customer's preference finally was planned and was executed. One or two dsiruptive strategy maybe can make the company succeeding in a short time ,but long time succeeding must depend on a series of disruptive strategy.

2011962875

Posts : 3
Join date : 2011-09-07

View user profile

Back to top Go down

Re: some thoughts on case 1: nintendo's disruptive strategy

Post  Sponsored content


Sponsored content


Back to top Go down

View previous topic View next topic Back to top

- Similar topics

 
Permissions in this forum:
You cannot reply to topics in this forum