Nintendo Essay Example | Topics and Well Written Essays - 3500 words

Nintendo - Essay Example Nintendo’s mission statement clearly reflects the company’s core purpose, its identity, values and, to a large extent, the company’s main business aims. Nintendo’s vision is expanding its market by creating innovative products that would appeal strongly to the larger gaming population. Through its vision, for example, the company has been able to produce smaller consoles that are not only cheaper, but also easier to use.2 Nintendo’s decision to create smaller consoles boosted its sales and effectively edged out its main competitors i.e. Microsoft’s Xbox 360 and Sony’s play station 3. In addition, while Nintendo’s competitors rushed to creating more powerful and high definition consoles, the company opted to stick with the standard resolution hardware. Instead Nintendo focused its energies to creating a console that would appeal even to non-gamers population. Nintendo’s strategy is to tailor its products according to the needs of its target segments, and one way of achieving the same is being different. The company, for instance, has been able to produce portable gaming into the market effectively challenging Sony’s PlayStation Portable. Nintendo’s Wii that came with improved features, for example, was produced in order to counter Microsoft’s Xbox 360 and help extend Nintendo’s prestige. Nintendo Company has the following strategies in the gaming industry. Following Nintendo’s many years of operation in the gaming industry, the company has gained enormous experience. As a result, the company can use cost advantage through analysis of its cost drivers such as backward integration. While the company’s competitors develop their games using their facilities, Nintendo uses off-the-shelf parts from different suppliers. Rather than produce own chip, Nintendo acquires the same from a supplier and at a cheaper cost. As a result, Nintendo was able to introduce the Wii at a relatively low cost compared to Sony’s PS3