Nintendo 's Choice Of Strategy

2023 Words9 Pages
NINTENDO’S Wii U 1. What were the key forces in the general and industry environments that affected Nintendo’s choice of strategy? Both general and industry environments impact companies’ choice of strategy, just as Nintendo was affected. In considering the general environment, there are six segments: demographic, sociocultural, political and legal, technological, economic, and global. Nintendo has strengths and weaknesses within each of these segments, as do its two main competitors Sony and Microsoft. The customer base for entertainment products like video games is not only large but growing. Consumers are split roughly even between the sexes, and the median age group is around 30. There has been a recent transition…show more content…
This is a new identity for Nintendo which it can and should be able to alleviate. Significant increase in access both to time and capital for pleasure. As people have increasing income to spend on entertainment, industries such as video games have become more popular. Nintendo has done well to capitalize on the growing consumer base by offering products that focus on growing trends like health and fitness. For instance, by integrating motion-capture technology, Nintendo was able to develop video games that require players to physically exercise. Similarly, Nintendo catered towards the growing niche market for video games that provided educational benefits, which was synchronous with the company’s existing initiative to attract younger customers. A strengthening theme in both the political and legal atmosphere is the protection of intellectual property. Various entertainment industries including video games have become susceptible to rampant piracy. In response, major competitors Sony and Microsoft have developed more protective software, as well as introduced controversial new policies. For instance, both require that video games on their newest consoles have access to the internet to be played, in order to ensure the game’s authenticity. While this may reduce losses to piracy for these companies, many customers have complained about the policies’ intrusion on convenience and privacy. On the other hand, Nintendo has resisted implementing such radical policies, and

More about Nintendo 's Choice Of Strategy

Open Document