Environmental Scanning of Nintendo

662 Words Oct 18th, 2014 3 Pages
1. Environnemental scanning

Macro Environment
Macro environment is said to be the most general layer of the environment. This consists of broad environmental factors that have an impact on the organization. The PESTEL framework helps us to identify the future trends which might impinge on Nintendo and therefore identify the key drivers of change. On the other hand the five forces framework helps to understand how the competitive dynamics within and around the video game industry are changing.
PESTEL Framework:
This categorizes environmental influences into six main types: political, economic, social, technological, environmental and legal.
Political:
Factors such as taxation policies, foreign trade regulations and social welfare
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Also, games have an influence to the culture of people; bring aggression in children, etc all which have an impact on the industry.

Technological:
The role of technology is vital in this industry as it focuses on technological efforts for competitive advantage. Every new development uses new technology. Though there are restricted innovations in the gaming industry, the speed of technological transfer is very high. Nintendo’s role from playing cards to toys to video games and then with each console introduced, included many technological changes. Technological up gradation increased hardware costs and discouraged innovation. The online capability of Nintendo Wii was a major change in the technology of the video game industry though they were not able to do as well as their competitors (Sony, Microsoft).

Environmental:
The video game industry uses a lot of plastic resources. Playing games on television or computers does consume a lot of power. Nintendo therefore see to it that their games utilize low power. On the other hand protecting the environment and practicing a “green” lifestyle is a value many of today’s parents are trying to teach their children. Nintendo facilitates in that effort through the creation of “Super Mario Sunshine””, which challenge players to improve the environment around them.

Legal:
The legal issues faced by the video game industry include trademarks, copyrights, licensing, online ownership, revenue recognition and demands of

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