CASE: Nintendo Case Questions 1. What are the defining businesses and economic characteristics of the video game console industry? What is the industry like? 2. What is competition like in the video game console industry? Do five-forces analysis to support your answer. Which of the five competitive forces is strongest? Which is weakest? Would you characterize the overall strength of competition in video game consoles as fierce, strong, moderate to normal or weak? Why? 3. What forces are driving changes in the video game console industry? Are these driving forces acting to make the industry more or less competitively intense?
Are the driving forces acting to make the industry more or less profitable in future years? 4. What 3-5 key factors determine the success of video game console developers like Nintendo? 5. What is Nintendo’s strategy? Which of the five generic strategies discussed in Chapter 5 is Nintendo using? What are some of the recent offensive and/or defensive strategies that Nintendo has employed? Have these tactics been successful? 6. Is it fair to characterize Nintendo’s introduction of the Wii as a blue ocean strategy? Why or why not? 7. How well is Nintendo’s strategy working in terms of the financial performance it is delivering?
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Should shareholders be pleased? Why or why not? What 2-3 weaknesses do you see in Nintendo’s financial performance? 8. What does a SWOT analysis reveal about the attractiveness of Nintendo’s overall situation? Is the company’s competitive position as solid as top management seems to believe? Does the company have a competitive advantage? If so, what is the basis for this competitive advantage and is the advantage sustainable? 9. What recommendations would you make to Nintendo to improve its competitiveness in the video game console industry and to maintain its favorable positioning vis-a-vis Microsoft and Sony?