Nintendo Strategic Issue

Nintendo Case

1.What are the primary strategic issues presented in the case and why ?

Nintendo strategy is to develop product, which are different from its competitors. The main strategic issue is to retain its points of differences and still compete with Microsoft and Sony. Nintendo offers consoles (such as Wii) for gamers of all ages and tastes. Wii was a great success with 34 550 000 units sold, this console was unexpected and unique at the time but in the console industry product life cycle is quite short. So Nintendo might have some difficulties to keep the Wii for the next generation. And it is more difficult for game developers to develop games for the Wii because the quality of the graphics is not as goos as PS3 or Xbox360. So it requires more creativity and time.

Also have a production process issue with the console Wii. During 2007, there were enabling to meet demand and the Wii was often sold out so it took time to get it. As a result gamers might want to buy competitor’s product

2.What solutions may work in targeting the primary strategic issues and why?

Nintendo needs to maintain differences in its product and still attract the largest number of consumers. The Wii was a console for all the family with games, which were adapted to everyone. As a result, teenagers were not really attracted by this product in particular. It is important for Nintendo to attract this segment of the market. As a result, they could release games more complicated with levels and missions (without violence). Those games would be more suitable to compete with Microsoft and Sony.

Concerning the production issue, Nintendo could have reduced the production on purpose. So I think that they need to be able to provide consoles during important periods such as Christmas for example.

3.How is this case connected to the topics we have covered in the current chapter?

In a company, knowledge is a key to the success and Nintendo was able to differentiate its...