Planning and Management Assignment Case study and report writing Help Analysis Review: Analysis of organization process: Nintendo & its position in the market

Planning and Management Assignment Case study and report writing Help Analysis Review: Organization Process in Japanese Multinational Company

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Analysis of organization process: Nintendo & its position in the market??

Part 1- Background

1. Engagement/Consultation process with stakeholders

Stakeholder’s engagement includes 10 stages such as, Importance, Influence, strengths, special considerations, resources, network, engagement level, communication, stage, and type. These stages identify the stakeholders and their interests. It also identifies stakeholder risks and develops strategies for building participation and stakeholder commitment. Nintendo follows engagement process in order to bring transparency, better targeting, information, improves risk management and increases accountabilities and efficiencies. Through engagement process Nintendo sets engagement objectives, assess the stakeholders, respond to the results of engagement and even measure and report progress to the stakeholders (Hutchinson 2008).

2. Background of organization

Nintendo Company Limited is a Japanese multinational consumer electronics company, which is located in Kyoto, Japan. It was founded in 1889 and it is the world’s largest gaming company by revenue. Nintendo is Japan’s third most valuable company, whose market value is over US$ 85 billion. In 2008, Nintendo came on the seventh position among the world’s most innovative companies according to Business Week-Boston Consulting Group. It has helped in recognising Nintendo’s imperative transformation into a creative design for powerhouse.

3. Key stakeholders and their role

Nintendo has two stakeholders that are divided in two groups which are: direct stakeholders that interact with Wii and directly affect the values and other is indirect stakeholders which are people, who don’t interact with Wii but are influence by the values. Direct stakeholders yield the return from console sales but ahs responsibility of their system, actions, and communication with customers. Game developers also come in direct stakeholder’s category. Watchers are indirect stakeholders, they have important role in gaming experience, as they have disturb interaction through limiting players movements. Game publishers are indirect stakeholders.

4. Organisational functions

Nintendo is the worldwide leader in developing the interactive entertainment games for all age group of people. The company ahs sold more than billion video games all over the world. The main function of the company is to develop the hardware and software video games for its customers. Nintendo created the revolutionary game console, “Wii”. Wii was very successful and attracted many people from various ages and resulted into the huge profits (Rabowsky 2009).

5. Main factors impacting organisation

The main factor impacting for Nintendo in the market is to understand and harness the changing forces, such as consumer desire for novel games, new technology, and complementarities between software and hardware. The company needs to confer such a strategy that could lead to competitive advantage in the new product cycle. While expanding its business in international market, Nintendo faces many problems related to languages, culture, and competitors. The primary challenge for Nintendo is how the company expands its customer base and defends its market from its major rivalries (How Much Do You Know About Video Games? 1998).

6. Industry norms, best practice, and regulatory requirements

Market power in the gaming industry is rigorous and roots from the oligopoly of manufacturing companies. Nintendo practices the industry norms and establishes the licensing fees, industry norms. Nintendo has established a series of policies regarding video game content. According to Nintendo regulatory requirements, it has to deliver high quality video game to its customers.

Part 2- Business Case/Report

1.  Analysis of organisation environment

Economic

If the economy of the countries is showing perfect results, people will generally have high disposal income level. In order to be successful a high disposal income is not enough there needs to be an interest in the market.  Nintendo offers its products at the lower end of the price scale that makes company’s products more reasonable to large audience involving those who do not access a strong disposal income. This case is not related to Sony whose products are very costly as seen with the €630 price tag on the Playstation 3 that is too expensive for the average person, who cannot afford to purchase the product. On the other hand, Nintendo sold its new product Wii at a more reasonably priced €270 price tag.  The same is applicable for all the system games. The Wii games start its range from 45-60 Euro and the PS3 games can cost up to €75.

Social

Video games are part of teenager’s life all over the world since several years.  There are many teenagers who play video games online and home.  In some cultures like Japan, video games are the important part of youngster’s lives.  Nintendo is using this to appeal to increase its wide audience base through Wii and the DS by starting an online community in which friends can play games free of charge anywhere there a Wi-Fi hub.  Nintendo is also planning to develop video games as an activity that the whole entry can take part in and for the most part have been successful.

Environment

Nintendo has taken many steps to help in preserving the environment.  Products designed by Nintendo are environmental friendly. At Nintendo offices, the company is using the technique of recycling the paper. Currently, Nintendo is recycling more than 70% of the waste produced presented at company’s headquarters that were used for promoting the aluminum cans and glass recycling at corporate cafeterias.

2. Strength and Weakness of organisation

Strength

1. Huge success of Nintendo games portfolio has been attributed to its appeal to all age groups people across various cultures and backgrounds.
2. Strategy of innovation is the greatest strength of Nintendo and has allowed the company to pour large amount into issues that allow the company to create something that differentiate it from other companies.
3. Nintendo is competent of creating innovative products and opening new markets as it has the skills, knowledge, technology, motivated staff, and willingness to take risks.
4. Nintendo’s strengths are its capability to market segment and become the leader in a sub market.  Nintendo believes that it would be meaningless to compete with Sony and Microsoft in the race to develop most powerful console, and therefore, they chose to develop the Wii for targeting a large customer base then its rivals (Ortutay 2009).

Weakness

1. Nintendo adopted the orthodox path, ignored the non-gamers, and focused over the existing gamers.
2. Nintendo’s bottom line policies of having a large number of game titles designed by the company’s game designers is one of the biggest weaknesses.  As it has resulted in third party companies have not been acknowledged with a great amount of excitement. Through this Nintendo’s position as hardware manufacturer has increasingly become difficult.
3. Due to low price strategy the threat of switching cost is resolved. The company weakness is its portfolio which is same from years and has not changed. Games and gaming consoles have a very short life period in the gaming industry. Nintendo focuses on video games and has no difference in its portfolio (Nintendo Annual Reports 2006).

3. Opportunities for improvement in organisation

1. Nintendo was the first company to launch motion technology in video games industry and that provided experience to the company in order to expand its technology and thus it has option to advent some new technologies.
2. Through adopting radical new strategy, the company got the opportunity to reach to non-gamers and capture a big market. It will also help the company in bringing innovative features that will most likely build the strong position of the company in the market.
3. Nintendo growth driver over the next several years will be the Wii console.  Although supplies of the console are somewhat tight at the moment, however its availability is constantly improving.
4. Nintendo will also launch its software to the huge audience due to the fact that Wii consoles are being shipped in the millions all over the world.

4. Recommendations

As the competition is increasing in video game industry, the next step which the players should take is to position their company in the market. Through adopting low product differentiation, market leaders would be able to able to make the platform that provides manager to provide various gaming experience. As the video game audiences are increasing, the companies should make the effort to target new groups (Surowiecki 2006). It is recommended that company should adopt the product and cost differentiation strategies in order to develop wide range of products of different cost, so that customers can purchase products according to their range. This will help the company in attracting wide audiences and maintain its position in the market (Bahadir, Stefan and Alexander 2011). If both the strategies are properly implemented by the company then it would be beneficial for the company to deal with economic, social, and environmental issues that are surrounding the company. Product and cost differentiation strategy would help the company in generating large amount of revenue that could be used for dealing with income incurred on disposing the waste (Graft 2007). Through this revenue the company can launch different social programs that create awareness about the advancement in gaming technology and its advantages for the children and youngsters. It is recommended that the company should move forward in adopting marketing strategies in order to promote their product in international market in order to attract large global customers.

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