Chapter 9 – Strategy
Brief Strategy analysis using the Seven S model on Nintendo Co. Ltd. - a multinational corporation located in Kyoto, Japan.
Structure
Nintendo founded on 1889 by Fusajiro Yamauchi and their original product is handmade hanafuda cards. They did well in early 20th century with their playing cards product. They even structure the company by hiring assistants to mass production the cards as the demand is high.
Nintendo also implement the ability to change and to varies the market segment during 1950s when they venture to US market - taxi company, food industry and TV network plus toy manufacturing.
Their flexibility of the company structure allows them to react on failures or market slump of above products.
Nintendo made a good move by valueing their employee that changes the whole company structure and focus in 1970s with one of their maintenance engineers, Gunpei Yokoi with electronic background changed the entire business plan to start focussing on electronic gaming device.
Nintendo becomes one of the most influential in the video gaming industry and Japan's third most valuable listed company, with a market value of over US$85 billion.
Strategy
Nintendo is sensitive to the changes of the external environment - customer and competitor. They aim to attract customers from all ranges. Nintendo push technology to the edge with their newest consoles that made gaming more interactive with wireless (Wii).
Their all age inclusiveness has made Nintendo friendly and the most popular gaming system today as it helps to cultivate the family value and friends together. Good strategy!
Style
Japanese are well known for hardworking culture. Their ability to change and strong emphasization of quality and goal achievement allow them to be success. Nintendo is not exempted from this style at all.
In 1956, Hiroshi Yamauchi (Fusajiro Yamauchi's grandson) visited the U.S. to talk with the United States Playing Card Company to expand the international market with Disney character's.
They constantly develop new products from Famcom to Nintendo console and a whole new changes of technological gaming console of Wii. Not to forget their hand held game device of game boy to new Nintendo DSi XL.
Skills
With their superb research and development in technology and understanding of customer need skills, Nintendo manage to transform their ever lasting Mario character the legacy of Nintendo to where he is now - world most recognised video game character (official Nintendo's mascot)
Mario games, as a whole, have sold more than 210 million units - this prove the success of Nintendo staff's skill and ability to sustain and improve Mario character/ game. It's not easy to do this remarkable record referring to the history of the video game market.
Systems
Their Marketing research and sales tracking systems allow them to gather information about their customers to stay competitive with others companies.
As of October 2, 2008, Nintendo has sold over 470 million hardware units and 2.7 billion software units
Superodinate Goals
Nintendo's goals - "to build customers' loyalty, strengthening the relationship online."
Mission Statements
"At Nintendo we are proud to be working for the leading company in our industry."
"We are strongly committed to producing and marketing the best products and support services available."
"We believe it is essential not only to provide products of the highest quality, but to treat every customer with attention, consideration and respect. By listening closely to our customers, we constantly improve our products and services"
Nintendo is an amazing company. When some Japanese company like Sony and Panasonic are strugging with product development and sales. Nintendo still grows strong and healthy.
ReplyDeleteI don't think Sony and Panasonic don't have a defined strategy, the key should be how strong mind to execute the strategy.