Executive Summary
Every industry and every company in a given market operates under a set of unique internal and external environment. Because of this fact, it is usually very difficult to come up with a singular strategy that completely dominates over other ideas, this scenario is seen even within the industries themselves. Determining what strategies to take in order to achieve the company’s goals and missions is thus no easy task. This paper seeks to analyze the Nintendo wii fit in the UK, the marketing strategies, internal and external environments combined with consumer behavior towardthe Nintendo wii fit game consule.
Before looking at the strategies the Nintendo wii fit employs in order to control a significant share of the UK market, a general overview of the characteristics modern gaming industry is necessary. Presently, there is a massive and steadily growing market for video game consules worldwide. For instance, in 2008, approximately 300 million people played a video game on a consule system (Thompson, Strickland & Gamble, 2010, p C-218). Due to the advancement in gaming technology in the early 2000s, the numbers of people playing video games grew by more than twice as compared to the 1990s both in the US and the UK (Thompson, Strickland & Gamble, 2010, p C-218).
In 2003, game enthusiasts begun to anticipate the arrival of a new generation, high definition and highly technologically advanced game consoles. With this anticipation, it was inevitable that the global gaming market and industry would expand significantly and as a consequence, the competitive rivalry between the big names in the gaming industry such as Nintendo, Microsoft and Sony would also increase.
The Nintendo Entertainment system was introduced in the year 1985. Single handedly, this gaming system almost rejuvenated the video game industry, with sales way over 60 million units. In 2006, Nintendo introduced its Wii line of products in the market with various revolutionary features such as: built-in Wi-Fi capabilities and Wireless motion-sensitive remote controllers which catapulted the Wii into the best selling new generation video game console in the whole world.
The goal of the company worldwide is to reach to non-gamers with products which are playable and enjoyable to everyone, that is, both seasoned gamers and non-gamers. (Capua, 2007). Nintendo’s mission statement states that “At Nintendo we are proud to be working for the leading company in our industry. We are strongly committed to producing and marketing the best products and support services available. We believe it is essential not only to provide products of the highest quality, but to treat every customer with attention, consideration and respect. By listening closely to our customers, we constantly improve our products and services” (Nintendo UK, 2013)
The mission statement, therefore, clearly reflects the core purpose of the company, its values, values and fundamental business goals. Their vision is to come up with new products that have never been seen in the market aimed at expanding the number of people who find gaming interesting exponentially. It is the same vision tha led to the production of a smaller, cheaper, lighter and easier to use gaming system compared to those in the market, the Wii fit, which was an instant hit in the UK and around the world. It sold more units as compared to the Sony’s playstation 3 and Microsoft’s Xbox 360. The competitors were on a rush to develop more powerful high definition consules while Nintendo focused with its standard resolution software and sought to produce a gaming system that would woo non-gamers.
This was a radical strategy since traditionally, the players in the gaming industry competed on technological advancement and performance, game realism and the quality of the graphics, these were also the factors that were most valued by most gamers globally.
The new Nintendo business model has the following features:
• A move shift in focus from hardcore gamers to new/casual gamers:
Many game developers in the industry had their focus on seasoned gamers and at the same time, the games developed wer quite complex and difficult to learn for casual gamers. This scenario gave Nintendo an opportunity to develop a console and games that attract people who had not been considered by other competitors such as Microsoft and Sony. This enabled the company to lower console performance in terms of technological advancement and instead add a new feature of motion control that was more fun for gamers.
• Nintendo eliminated the state-of-the-art chip development and increased the use of ‘off-the-shelf components for its consule:
• Reduction of production costs hence reducing the unit price of the game consule.
• Nintendo has eliminate the subsidies on its game consules which has seen an increase in the overall profits.
Nintendo’s current strategy for the Wii, which is known as a “Blue Ocean” strategy, has led the product to become the market leader in sales of game consoles. The extra functionality and features appeal to diverse areas of the market such as health conscious people, seniors and families. With its blue ocean approach, Nintendo has found a niche in the market and is successfully exploiting it.
