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Nintendo Wii Business Model Canvas

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by

Daniela Flühler

on 9 December 2014

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Transcript of Nintendo Wii Business Model Canvas

Value Proposition (VP)
The Value Propositions Building Block describes the bundle of products and services that create value for a specific Customer Segment
Customer Segments (CS)
The Customer Segments Building Block defines the different groups of people or organizations an enterprise aims to reach and serve
Key Resources (KR)
Key resources are the assets required to make the business model work
Key Activities (KA)
Key Partnerships (KP)
Nintendo Wii


A combination of Blue Ocean Strategy and the Business Model Canvas highlight the fundamentally different business model of Nintendo

.

Lea Arago, Daniela Flühler, Katrin Steiner
9 Building Blocks
Overview
Cost Structure (C$)
Key Resources
Channels (CH)
The Channels Building Block describes how a company communicates with and reaches its Customer Segments to deliver a Value Proposition

Customer Relationship (CR)
The Customer Relationships Building Block describes the types of relationships a company establishes with specific Customer Segments
The Key Activities Building Block describes the most important things a company must do to make its business model work
Nintendo Wii Business Model
Revenue Streams (R$)
The Revenue Streams Building Block represents the cash a company generates from each Customer Segment (costs must be subtracted from revenues to create earnings)
The Key Partnerships Building Block describes the network of suppliers and partners that make the business model work
The Cost Structure describes all costs incurred to operate a business model
fun, interactive entertainment for the whole family

Track body movements

Easy to use controller

Cheap device

Channels
Customer Relationship


Device-based relationship
Unusual gender such as female gamers

Unexpected age such as elderly people

Different target group such as families

Different way of playing – motion


Revenue Streams
Is generated mostly on peripherals

Two third of the games are sold directly
by Nintendo

“Only playable on Wii” Strategy


Block 1
Block 2
Block 3
Block 4
Block 5
Block 6
Block 7
Key Activities
Important activities to execute a company‘s value proposition

State of the art chip development

Research & Development, Hardware & Software Design

Building a trustworthy community
Block 8
Key Partnerships
Key partnerships optimize and reduce risks of a business model

Nintendo has a large group of development partners

Off-the-shelf hardware components manufacturers
Block 9
Cost Structure
Low cost strategy

Lower development cost than competitors

Large economy of scale and scope

Affecting 4 Areas of Business
customer, offer, infrastructure,
and financial viability
Customer Segments
Value Proposition
Resources that are necessary to creat value for the customers

Shigeru Miyamoto
Super Mario, Legend of Zelda, Wii games

Motion control technology led to a innovative turnaround

Hardware manufacturers and Software developers
Blue Ocean Strategy
Nintendo was fearing to drop out of the market
Sony -> Playstation, Microsoft -> Xbox

Blue ocean strategy was a turnaround for
Nintendo with its Wii

Gain market space by ignoring competitors

Shift to new markets, no or little competition

Use existing technology in a different ways

General retail distribution





Digital Distribution
Full transcript