Nintendo company

Nintendo company

Analysis of company history

Founded in 1889 as a card company in japan Nintendo co,.ltd. has evolved to become one of the largest video game and consumer electronics in the world by market capitalization. Nintendo has seen a lot of ventures during the period it has been in operations. Starting as production of homemade hanafuda playing cards, love hotels and cab services. However, in the 1960s the company pivoted towards toys and eventually transitioning into a video game company. Nintendo became a powerhouse of home and portable gaming from the 1980s to early 2000s. The success was attributed to the Nintendo entertainment system N64 and game boy series. The company has produced some of the top-selling video game franchises such as Pokemon, the legend of Zelda, Mario and animal crossing. The company at the time provided millions of people with hours of entertainment around the globe. However after the release of the Wii console the company struggled to find their groove and success they enjoyed.

Financial history

After developing into a video game company in 1977, Nintendo became a very influential firm in japan due to its success. With an evaluation of over $85, billion-dollar Nintendo became the third most valuable company in Japan. The company in recent times has seen a steady growth in their sales. This can be attributed to their new product the Nintendo switch released on march of 2017. The Nintendo is a mobile gaming unit that turns into a full console in one seamless experience. The Nintendo Switch has become one the best selling console in the companies history. The company sold a total of 960,000 units in the united states of America and 500,000 units in japan in the month it was released. The switch success is evident in its high number of sales as compared to previous consoles. It took the Nintendo switch just 10 months to surpass previous sale for Wii u which had been in the market for 5 years. By selling 15 million units in the first year. The company has also seen an increase in revenue after the release of the switch. A game like super Mario had 150 million downloads generating over $ 60 million in revenue in the first 7 months. Other games have also had a similar success adding more revenue to the company.

Target market

The gaming company identifies as a family console. Their sales pitch are focused on both children and young adults who enjoy gaming. The Nintendo Wii has a large fan base comprises of children. However, with the Nintendo switch the company pivoted towards a different direction marketing the device to young adults. The marketing adverts of the switch comprises young adults gaming in various locations. The move toward this market demographic has helped with the success of the switch given that young adults have a high purchasing power and therefore can purchase the console and games that are released by the company.

Critical area for growth

Gaming industry has been on a steady rise due to the advancement being made by technology. The gaming industry is expected to generate more than 150 billion due to the high number of gamers globally. Nintendo needs to position itself in inorder to have a share of these revenues. Through aggressive marketing campaigns and investing in video game productions to have a competitive edge against other competitors in the market.

analysis of their market entry strategy

Nintendo strength lies with their latest console the switch. The switch is a different kind of console compared to other gaming console such as the ps4. It being portable gives it a competitive edge over other gaming consoles. There is always a high demand for new and different technology and the switch fits in well with gamers. the concept of a new reimagined console will give Nintendo a chance at head start in the portable gaming market ahead of other competitors.

segment analysis and identify a new segment opportunity

Research shows that gaming will only increase in the future. There are currently 2.5 billion gamers worldwide and the numbers are projected to increase as more people become engaged in the gaming ecosystem. Having a powerful hardware gives the Nintendo a chance to dominate the portable gaming market. The company needs to invest in developing more solid game titles to appeal to more gamers. Investment will increase production for the company to meet the high demand for their console. The company can target gamers who are more outgoing and young people who travel frequently or are mostly outdoors in their marketing campaigns. The switch being portable will help sell the console to them.

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value spectrum analysis for the company

KPI metrics