[전략경영론] 닌텐도 Nintendo 성공요인분석(영문)

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2009.08.18
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[전략경영론] 닌텐도 Nintendo 성공요인분석(영문)에 대한 자료입니다.

1. Introduction
A. Reason for choice
B. Financial status

2. Game industry analysis
A. Game Product Life Cycle
B. 5 force analysis
C. Competitors

3. Corporate analysis
A. History
B. Culture and leadership
C. R&D division
D. Organization
E. Brand and character

4. Products
A. Cost leadership
B. Differentiator
C. New values
D. Software
E. Marketing

5. Summary
A. Problems
B. Suggestions

본문내용

1. Introduction

Game is something for men, especially young men. This kind of concept has been prevalent ever since game industry prospered. However, the concept is changing and the changes were made by a company: Nintendo. With its powerful characters such as Super Mario, Link from the Legend of Zelda, Nintendo was the most famous and popular game company until early 2000. However the dominant status of the firm was put in peril when 3D games became main stream. On contrast, Sony Computer Entertainment with its new game machine “PlayStation” emerged as a king of video games. For Nintendo the hardest time was 2003. Nintendo firstly in its history couldn’t make the end meet. After a few years, Nintendo regained its previous status as a dominant player in the game industry. There were two smash hits that brought the tremendous success to Nintendo: Nintendo DS and Wii. There are certainly some reasons that made Nintendo so successful. This paper will cover some of the reasons by analyzing game industry and Nintendo’s key success factors.

A. Reason for choice

Nintendo had ups and downs within 5 to 10 years and made some critical choices to bring a tremendous success to the company. As a student majoring business, I thought there are plenty of things that we can learn from the case of Nintendo.

B. Financial status

In 2002, Nintendo made 600 billion Yen. This became more than 3 fold after only 5 years. In 2008, Nintendo earned 2.100 trillion Yen with 280 billion Yen net income. This eye popping growth is induced by two smash hit products: Nintendo DS and Wii.

[Graph 1. Financial report]

2. Game industry analysis

Yoon Jong Yong, the president of Samsung Electronics, once said “game industry is potentially 160 billion dollar market. It is 3 times bigger than semi-conductor market which is only 30 billion dollar.” As he mentioned, game is a gigantic industry with rapid and stable growth. People buy games when the economy is in recession because they want to save money for entertainment by playing game at home rather than going out. On the other hands, they also buy games when the economy is booming just because they can afford them. In that sense, game industry never dies . It sounds fantastic. However, is game industry that attractive as it seems? We will figure it out by analyzing the industry thoroughly.

A. Game product life cycle

Like any other product, video games have own product life cycles. Let’s take a close look at the life cycle of game by using example of a golf game. A game is introduced to the world and only a few early adopters play the game and grade the game from rubbish to master piece. When the game is acknowledged to be interesting and nice, it moves on to the next state: Growth stage. All this happens in its introductory stage. The game gets public attention and more and more game companies release copycats of the game in growth stage. Huge and famous game manufactures have some advantages in this point. Even they came into the market late in the growth stage, they can get sufficient market share of the game by using their brand value and characters that are familiar to customers. Which game would you buy when there are two golf games one is “Mario Golf” with your favorite Super Mario and the other is “Someone’s Golf” published by some company you’ve never seen. The answer is obvious. In the stage of maturity, this complex state of competition became a lot simpler. Only a few games left and they fight for market share. These are usually from giant game makers with lovely characters such as “Mario Golf” from Nintendo and “Tekken Golf” from SCE with characters from “Tekken”. This intense but relatively stable state continues until totally new kind of game like a soccer game is invented during maturity or decline stage. Picture 1 shows the product life cycle of a game

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