Case Research Nintendos Disruptive Strategy Marketing Essay

Before the launch of NINTENDO WII GAMING CONSOLE into the market, the games section was shrinking in Japan and worldwide and the senior administrator of Nintendo found the threat in the market. Based on the key tendencies and market data, the reason was because of the complexity of the video games on the market.

With the benefits of Wii to focus on the non-gamers portion, and the unique positioning on the market along with its unique communication plan, Nintendo could capture a bigger market plus they become the leaders in the gambling segment.

Wii has been in the marketplace since 2006 following the 2 pioneer companies got launched their games on the market. Since then, Nintendo Wii changed the rules of the overall game with its proper positioning in the market. NINTENDO WII GAMING CONSOLE re-defined the needs of the marketplace and they molded the market predicated on these must secure the control in the gaming system section for both gamer group & previously non-gamers.

In addition to becoming the world head in the gaming market, NINTENDO WII GAMING CONSOLE is still enhancing and widening to get along with clients and getting recommended by Health care professionals and physiotherapists.

Executive Overview

"Sometimes You don't have to Battle to Win a Battle". A slogan in the publication Thick Faces, African american hearts clearly defined Nintendo strategy to gain back a lost market share.

Nintendo Wii is one of the latest system systems to blend up great buzz in the games industry since its unveiling. Previously known as the Nintendo Revolution, it has a great effect on the method of gaming.

In early 1980s, Nintendo dominated the game console business with the cartridge-based console system. However through the mid 90s they lost their dominance to Sony PlayStation. On 19 November 2006, Nintendo launched its fifth home video game console: Nintendo Wii, the direct successor of Nintendo GameCube, to compete with the Microsoft Xbox 360 360, Sony PlayStation 3 3, and the rest of the seventh generation video gaming systems.

In 2008, Business Week-Boston Consulting Group standing of the world's most ground breaking companies, "Nintendo" was ranked 7th, up from 39th the prior time. In 2008, Nintendo sold 70 million Products worldwide.

Nintendo Wii using its disruptive strategy reposition itself by developing a radically different system, concentrating on the non-gamers group that was neglected by the market leaders (Sony & Microsoft), also Nintendo Wii focused on emulating the true life game titles.

In addition to become the home gaming system for the family, Nintendo Wii has widened to go into another market, Wii Fit, which was also a fresh target group that was neglected by rivals. The Wii became a runaway success and, by Sept 2007, Nintendo became Japan's most effective detailed company after Toyota, having zipped past US$72 billion in market value and almost tripling in value since the introduction of the Wii the previous year.

In conditions of success, Nintendo was in an enviable position of earning a earnings on each Wii console sold from the first day. Sony, on the other palm, had already slashed the price of the PS3 by US$100 to US$499 to help boost sales of the system. This was still US$20 more than Microsoft's most expensive version of the Xbox 360 and about twice the price of Nintendo's Wii.

Nintendo Wii key strategy was to goals a broader demographic than its challengers. They had created an advancement that features both refreshing gambling experience and user-friendly interfaces to focus on the previously untapped part of the demographic. Gamers of all ages, including female players and older people, are getting into the action of NINTENDO WII GAMING CONSOLE. Their strategy was also to acquire low price models affordable to broader range of customers. This is permitted by lower creation cost strategy. With such a successful strategy, Nintendo created their own market place that offered value development for their customers at lower price.

However, Nintendo Wii still has room for improvements should they want to keep the gained market show. Eventually the Wii gamers will evolve requesting a better more technologically advanced Wii in conditions of HD functions, design and superior video gaming experience yet maintaining the convenience and family methodology. Nintendo has 3 main cases to protect their market show;

1- Unveiling a newly altered Wii that combines the original gaming concept of Wii but supported with high technology

2- Further make use of the web interface to create the new millennium console.

3- Maintain a lesser price strategy vs. its competitors. A strategy that appears to be difficult with the additional cost of superior technology

Main Report and Questions Answers

Questions 1:

Describe NINTENDO WII GAMING CONSOLE three main target consumer groups. Represent them on the placement map and add two immediate or indirect rivals for each kind of consumer.

This question can be replied on two situations, the first one related to the use of the game titles (Easy or Difficult) Display 1 and the next one is dependant on Age Exhibit 2

Nintendo repositioned itself by creating a radically different gaming system Wii which is concentrating on the video tutorial gamers and the non gamers group which is neglected by rivals.

Nintendo Wii has these 3 main goal consumer groups

Young adults who are thinking about uncomplicated games with a fairly easy set up. This group were not attracted to PS or any other complicated video games in terms of set-up and operating.

People who are prepared to make reap the benefits of training and training their physiques while playing these interesting video games which simulate the real playing.

People who prefer to hang up the phone with friends or relative and revel in their time by playing these in-house video games.

Exhibit 1

Complicated

Uncomplicated

Nintendo Wii has identified their tactical brand focus and business goals for Wii the following

Exhibit 2

Ambition: Secure control in the console gaming section through:

1- Focus on Wii as the most well-liked home system for the whole family.

3- Focus on expanding the marketplace through Wii Fit

2- Concentrate on Wii as the preferred video games for the professional gamers

Business targets:

1- Be the marketplace leader in america console segment, making a benefit from the first gaming system sold from the first day.

3- Outsourcing all productions of Wii, with an increase of than 1 provider for the same part to increase development and reduce cost.

2- Be the market innovator worldwide in value and level in games worldwide.

Nintendo concentrating on strategy was predicated on expanding the mark customers beyond the core of young men you need to include the non gamers section. Those included older guys such as fathers and grand parents, females such as women and mothers and also get a major show from the traditional main gamers market who are men and usually with age range of 16-26 years

Exhibit 3

.

Questions 2:

What is Wii's unique offering proposition? How did the brand translate this competitive gain in its advertising strategy?

Playability by all and this means a change towards all users' types. Moving from a contest on superior technological advantages to a far more user focused friendly strategy.

Nintendo directed to let people rethink about video games, and make gaming part of these life. In order to make that happen, Nintendo had to carry out bold and brand-new movements, to prevent damage in market show.

Nintendo Wii modified the guidelines of games market, through offering the console which is the initial Selling Proposition that was impressive, as easy to use, motion detector to translate the movement of the wand in to the screen, allowing a genuine life games.

The following describes the strategies implemented by Nintendo in market, technology and business aspects.

Reaching Beyond Existing Gamers:

Besides the existing supporters, Nintendo targets to open a mass market of first-time game players or even non gamers, women, and old consumers, not typically drawn to this form of interactive entertainment, thus creating an uncontested market.

New and Easy-to-use Controller:

Mastering complicated controllers, festooned with buttons, sets off and joysticks have previously ended many novices or non-gamers to be enthusiastic about game titles. Therefore, Nintendo designed consoles with a fresh, easy-to-use controller, completely different from the traditional one. For example, the Nintendo DS - touch screen, and Nintendo Wii -wireless controllers, that can be wielded as a tool, or for various sports activities equipment during game play. This ease of use has given Nintendo a great gain over their rivals

Shortening the overall game Time:

To many people, playing games involves investing large numbers of their time. With hectic life styles, consumers are not keen to try epic games which usually take a large number of hours to complete. Thus, Nintendo designed simple games, such as

"Wii Activities", that only requires play time of a few minutes per game. The shortened game time may charm to non-gamers or casual gamers.

The Budget Unit:

Consumers want great entertainment encounters and products that are affordability. Nintendo seeks to provide both. Nintendo launched Wii as a budget low cost alternative to Sony PS3 and Microsoft Xbox.

In addition to a low priced console, Nintendo included free game titles that experienced excellent consumers acceptance and where considered among the finest games up to now (Bowling, Golfing. . . etc).

More than this and an integral part of their Promotion strategy:

Nintendo Communicating the Wii communication to customers in an ever more challenging environment, dominated by two market leaders: Sony and Microsoft who launched their new generation games within the same time period of Wii, or even they were a bit before on the market.

These problems in the game playing market may be looked at as opportunities

Sony and Microsoft are targeting the young adults and the people (the gamers).

Complexity of the video gaming which led to market shrinking.

All the communication strategy are designed upon the positioning of Wii as (a machine that places smiles on encircling people's faces), motivating communication among members of the family as each of them found something relevant and are determined to carefully turn on the every day to be able to enjoy the "new lease of life with Wii"

The goal of the promotional strategy was to:

Expand the marketplace to non-gamers whom are considered new target organizations that need different communication strategy especially moms, so they hired carefully chosen suburban housewives to multiply the word amongst their friends that Wii was a gaming console everyone could enjoy jointly. And in a few countries like USA There is many live demonstrations in big malls and shopping malls in which young recruited employees are offering folks of different ages that can be played free and to test how simple and fun they can practice the sport he enjoys at home, with the advantage of burning fat and having fun together.

Expand the marketplace through creation of new market that focuses on the physical fitness level game titles "exergaming". Wii Fit created a new definition to assess the level of fitness between the customers.

Attract the gamers portion, through offering of Wii into the gamers included sites like YouTube and cultural networking sites.

Questions 3:

From a Strategic perspective, cite the main reasons why Nintendo's strategy is disruptive in the video gaming industry? Which product as long as they establish next?

Well, it is just a disruptive strategy as earlier success paradigms were cracked and new one are written. While all predecessors experienced all created incremental adjustments to the initial Nintendo Entertainment System NES, the Wii evolved several laws and root assumptions, thus rendering it a really rule-changing experiment.

The market was based on trying to come with superior cutting ends technologies, and improve the gamming experience in conditions of complexity, electricity and graphics. The Wii offered a change on all requests of things and place new benchmarks for other consoles, thus capping their expansion into new market section where HD images and faster CPU do not constitute credentials. Nintendo followed what is called a blue sea strategy *. Blue ocean strategy is thought as the simultaneous pursue of differentiation and low cost. Creating a fresh category and then branding that category in such a way that your brand is perceived as the innovator and category leader (in both senses of the word) is the essence of successful marketing today. Have a lower price and you simply win the battle.

However, Sony and Microsoft should come up with something to counter the Wii, but "later" is be much better than "never". Both companies have realized that non-hardcore gamers represent their future growth - that's what Nintendo itself said too- and if indeed they want to cash on this new manna, they need to have motion-based video games that seem to be so popular.

Both Sony and Microsoft will definitely have a product in this new portion. This should make a strain on the Wii success.

Nintendo will be the "loser" of this story if indeed they do not come up with a new idea or enhance on the prevailing one. However, the low price of the Wii will protect them for a while, and they involve some time before rivals have real products.

Conceptually, they have to come up with a vision-based solution without the utilization of motion detectors, even though the weakness in handling power may possibly limit their development skills. Their new product should be merging the simplicity that was with the current Wii consoles but also should include the high technology that the traditional hardcore gamers will use. This will create circumstances of the ART brand that is not only different but also superior. A WiiToo or a Wii2 should incorporate the initial Wii characteristics but also should have the high HD technology and superior design that the current competitors have. Using the web is the main element to further enrich the brand characteristics in front of competitors. Introduction a online competition between different Wii gamers online could enhance the elegance of the brand.

From a tactical perspective, Nintendo improved the guidelines of the games market, Nintendo evolved the market because

The market had not been really described. They defined the market, as well as defined the needs of the whole family.

Nintendo created more competitive show of speech and competitive strategy.

They were proactive in their promotional strategy to redefine the marketplace.

Capturing new segment and clients in the video gaming segment.

Redefining the fitness levels.

Getting advised by specialists and therapist to increase the fitness levels for their patients.

So the merchandise that needs to be is something expansion of Wii such as new technology of Exergaming (Wii Fit) because the marketplace has been disrupted and the new name-of-the-game has been set up well so Nintendo should capitalize on its success with Wii and start producing product extensions for the merchandise life cycle stage of maturity is needs to decline and then it can think of disrupting the market again.

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