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Sbr Group 10

In: Business and Management

Submitted By kissygadu
Words 532
Pages 3
CASE: NINTENDO – DISRUPTOR BEING DISRUPTED
PROBLEM: A great empire, like a great cake, is most easily diminished at the edges. Nintendo which was a business leader in gaming consoles is now losing its market to the competitors. In business highs are no guarantee. Nintendo soared high with the WII console but within few years saw their worst fall. Their fall in revenue could be attributed to stiff competition. Nintendo’s 3DS failed to earn the forecasted demand and revenue. Consumer’s preferences moved towards Sony PSP’s and Microsoft Kinect. New market of Mobile gaming led by Apple and Google was unprecedented competition that disrupted Nintendo
SITUATION ANALYSIS * Competition: Faced stiff competition from Sony PSP’s and Microsoft’s Kinect. The mobile gaming revolution led by apple and google disrupted Nintendo further. * Lack of Futuristic View: Nintendo’s plans for innovation or expansion were short sighted. They did not plan for the technology surge. Limited view hampered their growth. * Existing business model not functioning optimally: While competitors outsourced their software development and focussed on their competencies working towards disruptive innovation, all Nintendo’s operation were in house. This stunted innovation and growth. Further their target market was casual gamers whose profile didn’t suit the product Nintendo offers.
ALTERNATIVES and EVALUATION
1) Shift their target market: It is recommended that Nintendo shifts their target market and concentrates more on the hard-core gamers market. As the hard-core gamers market expect to generate more buzz and revenue for Nintendo when compared to the casual gamers market.
2) Business innovation: Instead of making amalgamating hardware and software side of gaming they could solely focus on software side as games by Nintendo like Mario have a huge fan following and more people would use…...

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