Nintendo’s Internal and External Market Environment.
Nintendo’s Internal and External Market Environment.
Nintendo played a critical part in the gaming industry by making itself one of the main players in that industry. Since its inception, Nintendo gradually continued to be successful in innovation and serving as the base for the entertainment industry. They began as card producers and slowly became a household name in the gaming sector (Aloupis et al., 2015).. It was during the release of original Super Mario Bros that trademark was revitalized in 1982.
In getting to know Nintendo’s internal and external market environment, we will use the SWOT analysis. This is a structure used to determine the firm’s viable edge and therefore create a strategy. The main function is to evaluate internal and external aspects including the existing and future potential. It is intended to produce facts and data on the strengths and weaknesses of a company and more so fresh and new ideas. SWOT analysis carried out on Nintendo stresses out the merits that most customers yearn for. It points out the prospects Nintendo offers to developers and also the fears that inhibit people from acquiring the device.
Nintendo is a huge success and this is because most people anticipated that it would be popular amongst the Japanese people which is the case because they provide support for merchandise manufactured within their country. This led to the firm gaining more popularity. One was able to play it online or at home. Buyers consist of retailers who are mostly adults. With the availability of the internet, most people from all over the globe can acquire the devices in large quantities and later on distribute them( Farhoomand & Joshi 2009). More so the gaming console’s reputation has grown worldwide with many people trying to purchase the product due to the fact the cost for Nintendo are reasonable therefore the demand increased since there were more buyers. An added advantage is the fact that the console can be enjoyed by people of all ages.
There are also weaknesses experienced such as Frame rates and visuals whereby a game becomes sluggish when a game contains fewer frame rates therefore one is unable to enjoy the game. Some of the games are not easily accessible remotely. One such game is Xenoblade Chronicles. Nintendo was to offer online play but got hindered. This is whereby customers can access many elements such as being able to play online with other users. The service is cheap compared to what other consoles command as a fee.
Nintendo provides sufficient prospects to the game developers. As the company’s sales increase, more developers are working with Nintendo to re-develop their games. Thus it permits the developers to charge the games from a few months running to years therefore gamers continue to purchase while the developers supply. Therefore the Firm and developers profit. Nintendo ought to tap into the online scene since it is gradually growing. More users opt to play games online which provides them with an opportunity to engage friends and family irrespective of the location in any part of the globe.
There was loss prospective clients because of issues pertaining to demand and supply which exposed the Nintendo’s cost-effectiveness. Since the brand is considered to be approachable by all ages, it may discourage other users that love hardcore games that Nintendo does not offer. In this case Nintendo is trying rectify the notion that it is childish which has now become an issue. Another threat is Legislation which is a big problem to the firm’s reputation. Since the company is universal, its merchandise is in use in secluded parts of the world. If a product faults, then it means Nintendo’s operations would not be accessible to many. It faces a huge task to get legal action in most nations due to hostile governments and undeveloped judicial structure if it meant to enforce the property rights.
Nintendo has allied with Cygames Inc and the subsequent introduction of online payment for switch that will permit gamers to contest each other and engage in slate of retro titles. This will assist the management in making the bold revolution in the life cycle of the console therefore taking control over the wider market that consists of people who don’t engage in games.
The firm introduced a toy line known as Labo which comprises of a cardboard assembly equipment which assists the gamers in converting the switch’s separable devices to simple responsive gadgets like small pianos whereby the gadget can be used to play games on television (Kim et al., 2011).. Kids can easily install new routines since the games’ codes are changeable. The main aim is to get the trust of guardians who may refuse to buy their children a switch-writing code.
An online demonstration of the game; Mario Tennis Aces was launched and it is anticipated that it will lure many to its network. 10% of Nintendo stock dropped for two days after gamers protested about link problems that deemed the game not playable. Amidst the growing concerns, the stock hit the lowermost point in nine months.
As time went by, competition from other gaming consoles went up quite fast but does not affect Nintendo in anyway because it has a gained popularity amongst many gamers of all ages. It thinks of the people that have supported them right from the start by modifying its consoles to the gamers liking.
Aloupis, G., Demaine, E. D., Guo, A., & Viglietta, G. (2015). Classic Nintendo games are (computationally) hard. Theoretical Computer Science, 586, 135-160.
Farhoomand, A., & Joshi, H. (2009). Nintendo’s Disruptive Strategy: Implications for the Video Game Industry. University of Hong Kong, Asia Case Research Centre.
Kim, S., Lamont, I., Ogasawara, H., Park, M., & Takaoka, H. (2011). Nintendo’s “Revolution”. MITSloan Management, 11(124), 1-23.