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Transcript of Nintendo presentation
Mohamed Taher Herzi
SBU's of Nintendo
Let the show
Research and development
Suppliers : hard & software
Unique and innovative
Gaming with more social
School and university students
Focus on family gaming
Online and offline
Minimize cost through outsourcing.
Providing highly innovative products
with a poor performances.
Canvas Business Model
Asset sales :
Royalties from games developers.
Selling innovatives consoles with more social experiences.
Target of political activists concerning controversy about violence in gamers.
Entertainment software rating board (ESRB)
Purchasing behavior is influenced consumer purchasing power.
Consoles development cycle follow roughly the general computer industry cycle.
Consoles are not upgradeable, customers had to buy complete new system
Video games are played by young males.
The current social trend on the rise are non gamers.
The number of females gamers are also on the rise.
Digital downloads and "in-game" purchasing is gradually becoming the norm.
Technology has improved processor speed, visual and memory capacity for gaming consoles.
Descriptive innovative of the smart phones and tablets have significantly altered consumer lifestyle.
The video game industry used a lot of plastic and metal resources for its hardware.
Manufacturing game consoles creates non-biodegradable waste.
What is it ?
it's the SWOT
Shigeru Miyamoto's franchises and intellectual property.
Low upfront costs.
The Nintendo brand name.
Past success family gaming model.
Uniqueness of hardware motion detection ( WII).
Shigaru miyamoto may eventually retire.
The brand name could be perceived by the gaming community as a kid's toy.
limited selection of software of the pro-gamers.
Console power weaknesses.
Limited options in online gaming.
Entertainment delivery technology
increase on video game technology (Graphism & CPU power)
Mimicking Nintendo's technology and innovation by Sony and Microsoft.
loss of potential costumers due to the XBOX and PS4 very high performances.
Disruptive innovation caused by tablets, smartphones and applications
Social media gaming.
The console market is approaching the saturation.
Bargaining power of buyers
Bargaining power of suppliers
Threat of substitutes products
Threat of new entrants
Competitive Rivalry within the industry
1 Create a new product that can feet the professional gamers as well as the amateurs.
2 Taking over the market of console game.
3 Gain more market share through new targets.
Develop a new console which will be a fusion between the DS and WII U.
Develop a new product which will include all the specific needs of each target of the segment at the same device.
Create Nintendo Store in the most important cities all over the world.
Launch a new console with high performance which will be a fusion between the two Nintendo's devices (Wii U & 3DS):
Product highly developed in terms of technology (graphics): satisfy pro gamers .
Try to keep approximately the same price: keep our target market (amateurs).
This new console will be like an everyday object with several features: TV/ health care/ Internet....
Avoid the precedent strategy which failed to promote the Wii U console.
Create a big event.
Promote the new product with highlighting the new features (revolutionary).
Simple and clean design including Nintendo's touch.
Price will not increase significantly .
Target both amateurs and pro gamers.
Provide new accessories for health care, sport, cooking...
Which strategy we recommend?
Nintendo Wii FUSION
Blu-ray/ HD dvd
Full HD resolution
New CPU with high performance
New generation of remote