Table of Contents

By the Fusajiro Yamauchi in 1889 Nintendo Co. was founded. The Company headquarters is located in Kyoto Japan, where the Japanese MNC is the one of largest video gaming globally. The unique software and hardware is created by the Nintendo which is the integrated entertainment of products by software is being the primary driver. The basic strategy intends by Nintendo which extends the worldwide gaming audience, and Nintendo offers the software and hardware to attract the customer that brings the different experiences to enjoy the gaming.

Marketing Environment of Nintendo

The Consoles and video games markets involves all the different games which is also used as the conjunction by the consoles as well as it is connected the hardware involving peripherals , consoles , accessories like the cable , memory cards , gamepads (Luck, 2010). In the world the largest video games publisher is the Nintendo which headquarters is in Japan whereas majority of top 15 games publishers is existed in US or Japan. In the console hardware markets, there are three major players Nintendo, Microsoft, Sony, where the market leader of console hardware is Nintendo by the 50% shares in the global video games in 2009.

Figure 1: Marketing environment

Macro Environment of Nintendo

The most general layer of the environment is Macro environment which is also consist of the broad environmental factors and it impact on an organisations.  Organisation will be affected because many significant changes take place in environment. In the macro environment the PEST is used to identify the Nintendo a future trend which is also determine the key drivers of the changes.

In this part, PEST analyses are illustrated to analyze Macro environment.

PEST of Nintendo
Political of Nintendo

There are different factors like the foreign trade, regulations, taxation polices as well as social welfare which influence the video gaming industry. Because the video games has the tendency to play with the emotions of the peoples which is also intrun the threaten peace as well as law of country being multicultural (Fleisher & et al, 2015). Thus the government has the authority to control the video gaming contents. Several laws regarding import, exports, manufacturing as well as data collection of the privacy has impact on Nintendo own procedures and policies.

Economic of Nintendo

The Nintendo is the dependent on positive economic environment along with higher purchasing power of consumer because gaming is the luxurious good for health. Among the countries, the Nintendo is the subject of fluctuations for the exchange rates.  The gaming industry provides the 20 lacs a job in a country as well as it contributes around about 2% of GDP nation. Government of the US which is allowed 100% cent for the foreign direct investment in the gaming industry. Low manufacturing cost of Nintendo was the one reason to sell the games at the nominal prices thus it is also increasing the sales.

Social of Nintendo

Nintendo actions are that to open the world Nintendo showrooms which is attract and influence the interest and customer toward the fillings of the customer’s needs. Because gaming has the influences to a culture of people which brings the aggression in children that will also impact on the industry. To improve the quality of life for the communities, the gaming industry should strive, and it is also served by the excellence of all the facets with its activities. For promoting the safety consciousness between all the employees, the Nintendo will give continuous training. Understanding consumer behavior is important before launching the business because the consumer is the one who generates sales for the corporation or business. The Nintendo global industry has performed consumer analysis before launching the business. The analysis has shown that the online gaming business has become quite popular with customers. Therefore, social factors are also in favor of the business. Nintendo should also ensure the different strategy which aims to maintain the image of brand as well as it keeps the customer excited plus engaged (Wagner, 2019).

Technological of Nintendo

The role of a technology is very important which focused on the technological efforts for competitive advantages. So, the role of Nintendo’s playing the cards to video game s, to toys as well as by every console which introduced and involving the various change of technological. For the development as well as the production of a technological switch lite product the Nintendo Company would be encouraged because it has a strategic joint venture. To develop fewer resources intensive in a country the ministry would encourage the research institutes.   The technological factor will affect the gaming sector as well. That is why the business will use the latest software and equipment to give a tough time to competitors. Also, the business will keep on upgrading its website.

Internal Environment of Nintendo

In this part, the micro environment is discussed which are illustrated to analyze internal environment (Sennott, 2014).

Micro Environments of Nintendo

In this part, SWOT and porter five forces analysis analyses are illustrated to analyze internal environment.

SWOT of Nintendo of Nintendo

Strength of Nintendo

Nintendo’s strength paly the significant role for the console hardware that also take the position in market leader. The manufactory cost is reduced by the focused on the functions of games for Nintendo.

·         Established brand, synonymous by the entertainments and gaming.

·         Have strong performance of 3DS console as well as Nintendo’s Switch (KAMEN, 2019)

Weakness of Nintendo

Nintendo abuses the restrictions as well as strong censorships which is also implements on the game software that bounds on game developer innovations and creative  

·         Devices of emerging might be impact on growth

·         In emerging market limited presence

Opportunities of Nintendo

Nintendo launched the new product “Touch generation” that also expands the new definitions of the gaming industry.  

·          capabilities of development and strong research

·         In significant subscribers, online switch services is provided  

Threats of Nintendo

Development of hardware of Nintendo is time consuming and complex. By the growing technology, the possible limitations factor might be unable to obtain the necessary technology.  

·         From the players have the intense competitions like Microsoft and sonny

·         In emerging markets; rise in availability of counterfeit gaming   

Porter five forces analysis of Nintendo

 

Suppliers of Nintendo

Bargaining power of supplier is medium, where the Nintendo hardware supply is largely dependent capabilities for the manufactures of Hosiden, Foxconn. Thus the systems is manufactured for these suppliers of lose and power over the dependent software. The supplier concentration is supplying the differentiated products

·         Medium bargaining  power

·         Cost of switching is low

The business is in its development phase and its needs suppliers to perform its business operations. The services this business is providing not unique therefore the bargaining power of supplier will be high at least in the beginning. Nintendo’s has not established any relationship with the supplier. Therefore, it is obvious that the supplier will be in power.

Potential entrant of Nintendo

It is dependent on the barriers for the entry like as;

·         Experience and the Economic Scale

·         Capital requirement of entry

The threats of the new entry in the gaming sector are relatively high. The online retail market is growing therefore many businesses are entering into the online retail industry. The growth provides the opportunity for each business to determine their market share.  It means that the threat of new entry exists which can limit the Nintendo’s market share. Moreover, the Nintendo’s does not need much cost advantages to set up a business (He, 2017).

Substitute of buyers of Nintendo

Buyer power for the analysis of the gaming global industry is that;

·         Concentration of buyers

·         Switching cost is low

Buyer’s power will be moderate because the online market is expanding and customers do not buy goods on a huge amount. The size of the online or Nintendo’s sector market is also not that big. Moreover, the switching cost is low, and buyers can easily look for another online products seller if they are not satisfied with the Global Nintendo’s industry. Buyer control is high because of the limit of customers having the ability to switch, and with the movement of adaptable advancement, customers approach information immediately enabling them to settle on more decision that is taught and seeking out the best courses of action.

Substitute product of Nintendo

In the Nintendo, there are too many products like online games, mobile game, and PC games, however no products could replace the console games.

Competitors  of Nintendo

The major’s competitors of the Nintendo are the Microsoft, and Sony. Whereas Sony has the 70% market share with the Nintendo’s as well as rest market share commanding the Microsoft. In hand of video games Nintendo continues to be a markets shares as well as it is able to maintain the low price of hardware.  To maintain the healthy relationship by outsides parties it has good reputations (Azrul, 2009).