1. Nintendo Wii
Case Study 4.1
International Marketing
Bryan Witt
David Zaki
2. History and background
• A video game console is just a
computer that is made only.
To Play games.
• These systems started to gain
popularity in the 1970s with consoles
that played only Pong.
• Current console success started in
1985 with Nintendo’s super Smash
Brothers.
3. History and background
• A video game console is just a
computer that is made only.
To Play games.
• These systems started to gain
popularity in the 1970s with consoles
that played only Pong.
• Current console success started in
1985 with Nintendo’s super Smash
Brothers.
4. History and background
• A video game console is just a
computer that is made only.
To Play games.
• These systems started to gain
popularity in the 1970s with consoles
that played only Pong.
• Current console success started in
1985 with Nintendo’s super Smash
Brothers.
5. Marketing
The strategy for marketing consoles is
based on:
– Better technologies/graphics
Ex: HD, Blue Ray and 3D
– Better games
Ex: FIFA, Halo and Mario
6. Production
• Production started in the US then
moved to China and Japan.
• Development is expensive but the
consoles cost little to produce.
• The longer a product is sold the more
profitable each sale.
7. Competition
• As the market became more
profitable:
• Computer companies began investing
in the market.
• Sony created it’s famous PlayStation
• Microsoft introduced the Xbox and
Xbox live.
9. Red Ocean Blue Ocean
“Bloody competition “Why compete
to take a larger share when you don’t
in the market” have to ?”
10. Red Ocean
§ Basis of competition is trying to get a
bigger share in the same defined
market.
§ Boundaries are defined and accepted.
§ Competitive rules of the game are
well-known and predefined.
§ example.
11. Blue Ocean
§ All the industries not in existence
today.
§ You create the demand rather than
fight over it.
§ You define the rules for competition.
§ You are the ONLY player in such a
market.
14. How Nintendo applied Blue
Ocean Strategy
§ Unusual Gender for the market-Females
§ Unexpected age – Elders
§ Different target group - Families
§ Different way of playing - Motion
§ It’s no longer about controllers
§ They simply jumped in another ocean
by changing the whole game console
market
15. How Nintendo applied Blue
Ocean Strategy
§ Unusual Gender for the market-Females
§ Unexpected age – Elders
§ Different target group - Families
§ Different way of playing - Motion
§ It’s no longer about controllers
§ They simply jumped in another ocean
by changing the whole game console
market
16. How Nintendo applied Blue
Ocean Strategy
§ Unusual Gender for the market-Females
§ Unexpected age – Elders
§ Different target group - Families
§ Different way of playing - Motion
§ It’s no longer about controllers
§ They simply jumped in another ocean
by changing the whole game console
market
17. How Nintendo applied Blue
Ocean Strategy
§ Unusual Gender for the market-Females
§ Unexpected age – Elders
§ Different target group - Families
§ Different way of playing - Motion
§ It’s no longer about controllers
§ They simply jumped in another ocean
by changing the whole game console
market
18. How Nintendo applied Blue
Ocean Strategy
§ Unusual Gender for the market-Females
§ Unexpected age – Elders
§ Different target group - Families
§ Different way of playing - Motion
§ It’s no longer about controllers
§ They simply jumped in another ocean
by changing the whole game console
market
19. How Nintendo applied Blue
Ocean Strategy
§ Unusual Gender for the market-Females
§ Unexpected age – Elders
§ Different target group - Families
§ Different way of playing - Motion
§ It’s no longer about controllers
§ They simply jumped into another ocean
by changing the whole game console
market
21. Competitors’ Strategies
• Microsoft’s Xbox 360
- Target the ‘serious’ gamer: young males
- Better graphics, live internet gaming
• Sony’s PlayStation 3
- Bigger but less focused target group
23. The future
• The market is trending towards
motion controls and special
recognition.
• This was shown by the success for
Nintendo’s Wii.
• However the market also favors more
powerful systems.
24. Conclusion
• Sony’s PS3 has developed wand
controls for motion recognition.
• Microsoft has also developed the
Kinect for spatial recognition.
• This shows that a Blue Ocean never
stays Blue. Competition often turns it
into a Red Ocean and the cycle goes
on.
25. New Blue Oceans
Sony creates Blue Ray
more data storage on a disc
Success is unsure at this point