Case Study:
Nintendo's Disruptive Strategy: Implications for the Video Game Industry
Read the case
study located on page 277 of the section titled Case Studies in your
textbook and prepare a 3- to 4-page report in a Microsoft Word document
concerning the following situation:
To consider the
viability of Nintendo's new strategy, the CEO of Nintendo, has brought you in
as a consultant. Your task is to use the company's competitive analysis to
predict potential competitor behaviour. To do so, complete the following tasks:
- Identify and describe the
competitive rivalry that Nintendo can anticipate in its business units.
- Determine the extent to which
Nintendo competes with other companies in its industry by assessing the
levels of market commonality and resource similarity for each major
competitor.
- Evaluate the drivers that will
influence each of the competitors' actions and responses.
- Consider the factors that impact the
likelihood of attack and response from competitors, and discuss any
relevant conditions that might influence Nintendo's competitive moves.
- Discuss how Nintendo's fast-cycle
markets affect the competitive dynamics facing it.
In order to
increase the company's top managers' understanding of Nintendo's
corporate-level strategy, the CEO has also asked you to prepare an overview of
diversification practices that can help the company successfully implement its
strategy in the various new markets where it has no proprietary advantage.
Based on the situation, complete the following tasks:
- Define Nintendo's level of
diversification and the type of diversification strategy it is using.
Identify ways that the company can build upon or extend its resources to
create value.
- Based on the predictions and
results of this study, discuss how Nintendo can plan to build and sustain
competitive advantages, which are critical for creating value for
shareholders.
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