Nintendo's Disruptive Strategy: Implications for the Video Game Industry

  • Read the case study located on page 277 of the section titled Case Studies in your textbook and prepare a 3- to 4-page report in a Microsoft Word document concerning the following situation:

To consider the viability of Nintendo’s new strategy, the CEO of Nintendo, has brought you in as a consultant. Your task is to use the company’s competitive analysis to predict potential competitor behaviour. To do so, complete the following tasks:

  • Identify and describe the competitive rivalry that Nintendo can anticipate in its business units.
    • Determine the extent to which Nintendo competes with other companies in its industry by assessing the levels of market commonality and resource similarity for each major competitor.
    • Evaluate the drivers that will influence each of the competitors’ actions and responses.
    • Consider the factors that impact the likelihood of attack and response from competitors, and discuss any relevant conditions that might influence Nintendo’s competitive moves.
  • Discuss how Nintendo’s fast-cycle markets affect the competitive dynamics facing it.

In order to increase the company’s top managers’ understanding of Nintendo’s corporate-level strategy, the CEO has also asked you to prepare an overview of diversification practices that can help the company successfully implement its strategy in the various new markets where it has no proprietary advantage. Based on the situation, complete the following tasks:

  • Define Nintendo’s level of diversification and the type of diversification strategy it is using. Identify ways that the company can build upon or extend its resources to create value.
  • Based on the predictions and results of this study, discuss how Nintendo can plan to build and sustain competitive advantages, which are critical for creating value for shareholders.
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