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Will Nintendo Survive the Vastly Developing Video Game Industry in North America - Research Paper Example

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The question that this study seeks to ascertain is: Will Nintendo survives the vastly developing video game industry in North America? This study discussed various factors that affect planning of strategies for the company using SWOT, Porter’s Five Force and PESTEL analysis…
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Will Nintendo Survive the Vastly Developing Video Game Industry in North America
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Download file to see previous pages This research will begin with the statement that in this age, the demands of the individual are changing just as the alterations within the economy. This is mainly due to the introduction of varied types of inventive technologies, techniques, and models. Due to which, the demand and preferences of the customers are also changing at a rapid pace that enhances the rate of switchovers. However, in order to retain the customers within the brands, varied types of value-added games are introduced by the game console organizations at a quite competitive price. Therefore, due to the presence of numerous rival players, the rate of competitiveness is increasing at a rapid speed thereby enhancing its image and position to a significant extent among others. Nintendo is one of the reputed and largest, Japanese multinational organization attaining a profit margin of ¥7.2 billion and total assets of ¥1.4 trillion in the financial year of 2013. Within a very small time span, it expanded its wings in the entire globe that amplified its sustainability. Bargaining power of the buyers: the bargaining power of the buyers is extremely high. This is mainly due to the presence of numerous rival payers in the market of North America. As a result of which, the customers always desire to attain most advanced and modernized games at a quite low cost. However, in order to fulfill the inner desire of the customers, the organizations operating in the segment of video games or game console tries to offer value-added games at a competitive cost. So, the customers stick to the segment of video games in-spite of economic recession. Bargaining power of the suppliers: the bargaining power of the suppliers is moderate. This is mainly because; Nintendo sorted or selected its suppliers by itself and so the suppliers desired to retain its value within this strong brand as compared to others. Therefore, in order to maintain the competitiveness, the suppliers always tried to offer varied types of modern and advanced software’s and technologies at a quite low cost to these reputed brands such Nintendo, Sony etc. Competitive rivalry: due to the presence of numerous rival players in the market of North America such as Sony, Microsoft etc, the rate of competition is extremely high. As the customers of the game console or video game market always prefer modern technologies to the maximum extent of the organizations, such as Sony, Microsoft etc try to introduce varied types of products at a quite low cost. ...Download file to see next pagesRead More
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