4. Nintendo's differentiation

Business Strategy of Nintendo

Hi, guys. Before starting our business, I just want to glance at market strategy of real world. There is a boom of portable game such as PSP, Nintendo DS. Especially, we easily find people playing the Nintendo DS while they are going to somewhere by subway or bus. Even though Nintendo DS has some disadvantage of late entrance of the market, Nintendo has more market share than SONY. What strategy do they perform? Let’s check it out



Reference :http://www.seri.org/kz/kzKsosv.html?ucgb=KZKSOS&no=35524&cateno=1

1. Enlarged target market
Usually, Game industry usually decides to sell their product to young male as a target market. Nintendo, however, extended their thinking from young and male to elder and female. They made new software which is helpful to develop player’s intelligence such as writing Chinese letter, Mathematics, Power of memory test for their new target, elder and female.




2. Differentiated development strategy
Nintendo intended customer-centered product development while SONY and Microsoft focused on high-tech product development. This difference make their products have different prices, of course DS is cheaper than others. Also, another innovated product of Nintendo, Wii, which is totally different operation system, got attention from not only game mania but also people who like sport because this console make players behave what exactly they do in real.




3. Leadership of innovation
Cooperation laboratory with Nintendo, HAL, chief of this laboratory was promoted to CEO of Nintendo. At that time, there were many concerns about his leadership. Nevertheless, the president of Nintendo didn’t change his decision because he highly reputes the chief’s ability to develop products. Then, his decision was right.

Now, we can learn something from the company. First thing is a mental switchover. We need to enlarge our thought not a stereotype. Second, innovative leadership is also important as much as development of new product. The CEO said that mothers didn’t like their children bring some games which are violent home so he puts his effort to develop sound game. This is a market needs, and he knew what market needed.

We are going to do our business in simulated business world, but this strategy will works in that world, either. We need to study to get high position in that business area.

by 20300121(Kim, Jae-Yoon)