Nintendo Wii Sustaining Competitive Advantage

In: Business and Management

Submitted By lillybell77
Words 1196
Pages 5
Summary

Nintendo entered the video game market in 1979 and has been a top competitor ever since. In 2006, with the release of the Nintendo Wii, they secured their competitive advantage in the video game industry. The Wii was created to establish a new standard in game control, using innovative and unprecedented interface with the Wii remote. The remote’s motion sensor capabilities allowed the user to interact and manipulate objects on the screen by moving and pointing the remote in various directions. It really changed the way games were played.
In 2010, they were the market leader of that generation of video console sales growth, ahead of Microsoft and Sony. By the fall of 2010, Sony and Microsoft were starting to gain on Nintendo’s competitive advantage when they came out with their own gaming systems that had innovative controllers along with much better graphics.
If Nintendo wants to keep their competitive advantage, they will need to reevaluate their strategies. External Environment

If a company does not keep up with changes in the external environment, it becomes difficult to sustain competitive advantages. There are two components to the external environment to analyze. The general environment, which consists of demographic, sociocultural, political/legal, technological, economic and global conditions; and the competitive environment, which includes rivals, suppliers, customers and other factors that may directly affect a company’s success.
Nintendo used the Wii to expand their target demographic audience. While the competitors gaming systems were designed for the hard core gamers, Wii was marketed as a gaming system for everyone. Nintendo’s goal was to create games that everyone could play and a system that would appeal to women and people who had never played video games in the past.
The disadvantage to this strategy is that by designing…...

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