Nintendo as a Japanese Firm Specializing in the Video Game Consoles - Case Study Example

The industry is mostly driven by technology, affordability as well as the ease with which customers can learn the games.
2. Competitive analysis
a. The bargaining power and leverage of buyers is a strong competitive force

b. The bargaining power and leverage of suppliers is a less threatening competitive force.

c. Competition from substitutes is a strong competitive force.

d. Threat of entry is a less threatening competitive force.


Rivalry among competing video game console producers is highest because there are two large companies i.e. Microsoft and Sony which control most of the market.
3. One important factor is a technology which keeps on changing offering customers new options to experience gaming in an entirely new manner. Apart from this, the ease with which customers can adapt to the games is also a driving force and makes the competition more intense within the industry.

Nintendo is focusing on delivering products that are unique and are not being used in the industry by others. As such, it is focusing on the differentiation strategy by producing gaming consoles that are radically different from the competitors. 

1. One of the key strengths of the firm is its ability to manufacture technologically simple gaming consoles and other products. However, this not guarantees a competitive position for the firm as big giants like Sony and Microsoft. Though it has a competitive advantage in producing handheld gaming consoles, however, its advantage is not sustainable as it requires consistent improvements in technology to dominate the market.

The above analysis suggests that the firm is at the number 3 position and may be lagging behind other top competitors.

1. It needs to further develop its existing markets by diversifying into other and related products in the existing markets. It needs to improve its existing markets by launching new products in the same markets it is serving now.

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