Nintendo Market Environment Situation Analysis





Nintendo Market Environment Situation Analysis

Basically presenting itself as a company that sells interactive entertainment technology, Nintendo deals in video games, and related products. These products are all presented in both hardware and software forms. In form of console, Nintendo manufactures game cubes and systems referred to as Wii. In its structure, the company associates with five other companies as well as twenty three subsidiaries. Evidently, the company enjoys a large part of the market share in its area of production (DeMaria 1-18).

Nintendo’s macroenvironment presents numerous advantageous constitutions. It is worth noting that their game products are unique and have not previously been made by other companies. This indicates the extent to which Nintendo has researched about its markets and procedures. In record note, Nintendo functions worldwide and targets gamers across all ages and sexes. However, target definition and specification should be done by Nintendo in order to specify products by gender and ages to which each mostly appeals. It is also worth noting that the company is at par with social and societal trends (Sheff 27-68).

Specifying the trends in the American markets, Nintendo can be applauded for understanding the American population and societal trend, then implementing strategies that successfully work with the same as planned. By identifying that children love games and spicing the games to limits of extraordinary enthrallment, Nintendo has succeeded in growing. Yet another class also identified as a potential boom purchasers include those in advanced ages. Even to them, Nintendo has succeeded with sales.

SWOT analysis

Strengths: outstandingly, Nintendo can be easily identified by the strength of its brand. Because of the strength of the brand, it has subsequently built an outstanding customer and brand loyalty which continues to widen as Nintendo’s market base grows (Sheff 31-54). Again, the company has greatly diversified its operations geographically thereby widening the market and allowing ease in market access.

Weaknesses: owing to the fact that Nintendo’s products may have to depend on other companies for support and distribution, this overally impedes its independence. Such parties include various television companies as well as Microsoft.

Opportunities: Various opportunities present themselves to the company. The possibility of increasing the diversity in the range of products made would certainly increase its returns. This is because such a step would avail increased options to consumers. Yet again, making considerations of planning for each part of the population to ensure children, youths, and adults are all included would also sail through (Sutherland 86-94).

Threats: on the other hand, various situations threaten to compromise the success and sustenance of Nintendo. Cut throat competition in the market and in terms of quality of products is one such threat. One major company that gives Nintendo such competition is Microsoft. Again, continuous piracy damages the reputation of the company and deprives it of income. It is also worth noting that dependence on other marketers as well as limited market exploration abilities hamper the possibility of its increase in growth (Provenzo 13-54).

Markedly, the company must act and respond to the issues that are affecting its growth. If this is done, the possibility of success will increase. The first step it should try to achieve is the establishment of technical and technological knowhow freedom and non-dependency (Kent 67-80). If this takes place, it will simply mean that Nintendo will not share any sales activity with business rivals, ending up with more success.

Works Cited

DeMaria, Rusel. Nintendo games secrets. Rocklin, CA: Prima Pub. and Communications, 1990. Print.

Inoue, Osamu. Nintendo Magic: Winning the Videogame Wars. New York: Vertical, 2010. Print.

Sheff, David. Game over: how Nintendo conquered the world. New York: Vintage Books, 2011. Print.

Kent, Steven L. The ultimate history of video games. New York: Random House International; 2002. Print.

Provenzo, Eugene F. Video kids: making sense of Nintendo. Cambridge, Mass.: Harvard University Press, 1991. Print.

Sutherland, Adam. The story of Nintendo. New York: Rosen Pub. Group, 2012. Print.

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