1. Jake Cashion Jonathan Popa Tommy Than Michelle White

2. Vision & Mission Attract new user segments
Provide affordable entertainment
Enhance customer value
Maintain profit margins
Utilize innovative technology
Create an active , social gaming experience

3. Gross Profit Margin 20% Profit Margin (40%) Profit Margin
Revenue: $199
COGS: $158.60
(40%) Profit Margin
Revenue: $599
COGS: $840.35
(42%) Profit Margin
Revenue: $299
COGS: $425

4. Japanese Yen in Millions ($1 Yen = $.97 USD)
Five Year Summary
2013
2012
2011
2010
2009
Net sales
$635,422.00
$647,652.00
$1,014,345.00
$1,434,365.00
$1,838,622.00
Net income
$7,099.00
-$43,204.00
$77,621.00
$228,635.00
$279,089.00
Japanese Yen in Millions ($1 Yen = $.97 USD)

5. Porter’s Five Forces Competitive Rivalry Within the Industry
High
Threat of Substitutes
Bargaining Power of Suppliers
Threat of New Entrants
Medium
Bargaining Power of Buyers

6. Key Rivals Nintendo Wii Microsoft’s Xbox 360 and Xbox One
Sony’s Playstation 3 and Playstation 4
Apple and Android Devices

7. Macro Environments PESTLE Analysis
Political
Economic
Social
Technological
Legal
Environmental
Political: Mostly concerned with violence in video games
Economic: Industry life cycle tends to match with computer industry
Social: Most video game players are young males. Nintendo tried to open up the demographic by catering to the “causal gamer”.
Technological: Processor and graphics card improvements plays a major role in the market. Technology in Smart phones has created a new market for gaming.
Legal: Issues with copyright, trademark and intellectual property cases
Environmental: Consoles, games and accessories use a lot of metals and plastic

8. VRIO Analysis The Question of Value
Nintendo’s high stocks and reputation allows them to grow in their product and technology development.
The Question of Rare
Resources are built from based users which give the advantage to enhance in their unique wireless and motion experience compared to other consoles.
The Question of Imitability
Nintendo games genre is easily imitated, but its reputation and style cannot.
The Question of Organization
Nintendo Wii current resources and capabilities in its supply chain are sufficient enough to compete with the largest players in the industry. (Sony and Microsoft)

9. SWOT Analysis Strength Weakness Opportunities Threats
Low cost hardware/software
Unique use of free motion of Wii controller
Large selection of multiplayer games
Weakness
Limited selection of software
Trailing in online experience opportunities
Weak graphic compared to other consoles
Opportunities
Leading game console brand image
Leading of “all age” games attracts family and friends play
Attract many consumers because lower unit price sales compared to others
Threats
High competitor units in market
Software developers abandoning Wii software development due to low profit projections

10. Porter’s Analysis of Three Generic Strategies
Narrow Market Scope
Broad Market Scope
Uniqueness Competency
Low Cost Competency
Developed the first motion sensor controller system
Competitors quickly implemented improved controller systems including voice command
Differentiation Strategy
Lower cost of production due to less robust hardware
Able to provide lower price than Microsoft and Sony given their more built out, higher tech consoles
Cost Leadership
Focused on market segment of gamers not interested in expensive hardware
Focused also on non-gamers, brought on the development of the motion sensor controller system and interactive gaming
Competitors more focused on power user gamers, expensive hardware and HD graphics
Competitors also encouraged and funded development of more immersive and engaging games with intricate storylines and intense graphics
Segmentation Strategy

11. Diversification Failed Attempts:
Started as playing card company in 1889, but was abandoned as a business venture by 1970s
Late 1960s saw attempts at a “Love Hotel”, TV network, a Taxi service, and also an instant rice food product.
Were able to make money with these ventures to get by, but unable to sustain growth until the creation of the video game industry
Ran Nintendo Power magazine from July 1988 until December 2012
Present:
Primarily focused on video game hardware and software manufacture and development globally
Majority owner of the Seattle Mariners of Major League Baseball in the US
Joint venture with Chinese firm to manufacture and sell similar game console
There is a push from investors to make new attempts at diversification, but there is little current activity in that arena

12. Acquisitions, Joint Ventures & Divestitures
A software developer like Square Enix, Ubisoft, or Gearbox Software
Could help provide insight into the development of competitors games, hardware, etc.
A mobile game developer like Rovio or Glu
Could help with marketing or further monetizing games in the handheld market
Divestitures:
Discontinue Wii production
Focus on WiiU and 3DS
Joint Ventures:
Large and ever growing list of development partners, most notably: Bandai Namco Games, Square Enix, and Game Freak
Several subsidiaries involved in the video game industry, most notably: Creatures, Inc., Nd Cube, and Retro Studios.
Recommend to continue to rely on these types of relationships for all future projects

13. BCG Portfolio Matrix Nintendo 3DS WiiU Seattle Mariners Wii
Industry Growth
High
Low
Stars
Dogs
???
Cash Cows
Wii
Seattle Mariners
WiiU
Nintendo 3DS
Market Share
Low
High