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Nintendo presentation

Transcript: 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. Trademarks Copyrights Licensing Intellectual property 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... PESTEL analysis it's the SWOT analysis 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. Threat of new entrants Value propositions Costumer segment HIGH Environmental factors Motion Detection HIGH Ahmed fehd Benkheroubi Khadija Jouini Sarah Siala Mohamed Taher Herzi Mohamed Friaa Cost structure 3DS Weaknesses Canvas Business Model - 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). + SBU's of Nintendo Key resources Production partners. Development partners. Sales partners. Nintendo's challenges HIGH 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. Children School and university students Focus on family gaming Minimize cost through outsourcing. Providing highly innovative products with a poor performances. New generation of remote What is it ? Key activities Retailers Websites Community Online and offline Competitive Rivalry within the industry VIDEO GAMES Which strategy we recommend? Legal factors LOW HIGH Social factors Threats Channel Revenues Asset sales : Consoles Games Accessories Royalties from games developers. Selling innovatives consoles with more social experiences. Community fees. Economic factors Unique and innovative Gaming with more social experiences Porter's 5 Forces Recommendations USB 3.0 Blu-ray/ HD dvd BCG Matrix WII U Key partnerships Research and development Selling customize Building community Let the show begins ! Nintendo Wii FUSION Full HD resolution New CPU with high performance Wireless connection ON/OFF 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. Implementations Technological factors + Political factors Strength - Opportunities Bargaining power of suppliers Home networking Entertainment delivery technology increase on video game technology (Graphism & CPU power) Shigeru Miyamoto. Suppliers : hard & software manufactures. Outsourcing. Bargaining power of buyers Implementation: Threat of substitutes products

Nintendo Presentation

Transcript: Rivalry among Existing Competitors The power of customers is very strong until they buy a console Easy to lose existing client Hard to gain new client These companies are dependent on customers Through advertising can be possible to increase power of buyer Key Factors Console Technology War Very challenging industry Competition: Sony (PS), Microsoft (XBOX 360), Nintendo (Wii) Customer range: young to old generation, females, hard core gamers, first time gamers Highest sales of video game consoles, software, and accessories in 2008 - $23.1 billion 19% greater than 2007 Despite recession and increasing competition, industry continued to grow through 2008 In 2009 industry revenues fell from $1.7 billion in 2008 to $1.2 billion Console sales were specifically hurt the most, falling from $617.3 million to $382.6 million Thank you for your attention! Blue Ocean Strategy Business Strategy Open innovation  WiiShop channel, WiiWare Differentiation & low cost leadership Very weak High cost High competition Oligopoly Nintendo’s Strategy SWOT Analysis 1983 – Nintendo Entertainment System (NES) 1990 – Super Nintendo Entertainment System (SNES) 1996 – Nintendo 64 (N64) 2001 – Nintendo GameCube (GCN) 2006 – Nintendo Wii 2012 – Nintendo WiiU Strengths Established brand name and recognition Nostalgia and positive emotions associated with older games Global presence and reach Loyal customers Unique products Cost leaders First to introduce motion technology Lots of capital New product long before competitors release Wii – Netflix partnership Nintendo is solely a "toy company" The Bargaining Power of Buyer Technology Strategy Do it differently Moving to mixed reality The threat of substitute products or services is low So far there is no appropriate substitute for an electronic game or game console PC games and tablets Product innovation Technological change Change in the industry growth rate Change in the personal computer industry Change in the industry’s costumers Bargaining Power of Suppliers Video Game Console Industry Timeline New demand in an uncontested market space Non-gamers No present competition New gaming concept/Strong value innovation Competitive advantage – market leader in sales of 7th generation game consoles Weaknesses Smaller game selection than competitors and less qualitative games Dependent on global supply chain, could cause potential problems Margins per unit are very low Technological capabilities Partnerships with independent software developers Acceptable development and production costs Product variety Access to distribution 2005 Microsoft releases Xbox 360 for Christmas Sony and Nintendo launch products to compete 2006 Sony launches the PlayStation 3, with matching specifications and additional Blu-ray drive, but at a high price Nintendo releases its technologically inferior Wii console and runs out of stock through the holiday season 2007 Nintendo sells all the Wiis it can produce through 2007 and 2008 2009 Nintendo’s Wii is the market leader in sales of seventh-generation video game consoles 2010 Microsoft launches Xbox Kinect, Sony releases PS Move 2012 Nintendo Launches the WiiU on November 18th Porter´s Five Forces SWOT Analysis Market Strategy Reaching beyond existing gamers New & easy to use controller Shortening the game time The budget console Financial Performance Driving Forces Nintendo Video Game Consoles Opportunities Increasing online gaming Expanding customer base Middle East and Asian markets Improving quality of console games for other gamers *U.S Dollars in Millions Weaknesses in Financial Performance Very high in the case of gaming consoles and games and accessories Market share  R&D  new customers New generation consoles new innovative features customer switch the company Threats Recession affected sales of video games as non-essential products Sony and Microsoft have released motion technology gaming systems IPad and tablet games Threat of Substitute Products or Services SWOT Analysis SWOT Analysis Power of Suppliers is very low Suppliers are dependent on these companies; however, they provide work for entire year Maintain Innovative image Face up to Xbox, Kinect and PS Move, moving into the accessible gamers market by enhancing gaming experience and improving performance Keep costs of production low Develop better and more games with different levels of game play sophistication 2012: Negative Operating Income for the first time since 2000 Main products are reaching the end of their product life cycle Insufficient sales from games and other complementary products to maintain high financial performance Console Segment of the Video Game Industry Porter´s five forces Nintendo’s Strategy Threat of New Entrants Competitive Strength Assessment Recommendations Mariya, Suleyman, Marina, Vlad Video Game Consoling Industry Nintendo’s Consolidated Statements of Income

Nintendo presentation

Transcript: Enemy's All hero's need enemy's but Mario has more than one Donkey Kong- This powerhouse Ape was Mario's enemy before Mario was called Mario.* * Mario was called jump man originally Bowser- Bowser is Mario's latest nemesis and the king of the sub-enemy Koopa's Waluigi & Wario- Wario is the paradox form of Mario and is EVIL. Also flip the W upside down and you get Mario. Waluigi is the paradox of Luigi and a Wa has been added. Enemy Helpers mario's enemy's have alot of paid assasins Gumba's Koopa's parakoopa's bullitbill's bombomb's boo birdo black boo blowtorch guy shy guy black shy guy bomb boo chomp chain chomp cosmic clone crash kong hammerbro dark hammerbro dark spiked gumba paragumba dark paragumba flying shy guy fwoosh goul guy golem golden chomp amazing flyin' hammer bro big boo big bombomb BIG BERTHA King Boo Kirby Enemy's kirby hasn't got many enemies but does have 2 Meta knight- meta knight is a formidable enemy with a sword that looks like fire king dededee- this king has always hated kirby and uses waddle dee's to help him helpers- kirby only has 1 type of enemy helper waddle dee's- these freakish little foes are king dededee's best defence allies-kirby has 2 exceptional allies keeby- keeby is kirby's brother and gives him loads of help the star warriors-kirby is 1 of the last star warriors Link/Zelda Link is a jolly little elf who KILLS things. Zelda is a jolly little princess who gets kidnapped and saved by Link. Allies link has loads of allies Navi- This fairy is the most annoying thing in all of the games. It is really annoying when she say's" hey, hey listen" as she repeats it all the time. shiek- zelda's ninja form toon link-cartoon link-swordsman of the sea The triforce is this structure made of triangles Gannondorf- big poo poo head- has the tifoce of power Link has the triforce of courage. Zelda has the triforce of wisdom. together they make you really powerful enemy's Gannondorf- this reserected lord of evil is, as the name suggests, reserected and evil Mario Nintendo made kirby

Nintendo Presentation

Transcript: “The next generation is a place where the best idea, not the biggest budget will win,” “The key here is not what you are playing but how you will be playing. Revolution will also create entirely new genres to expand the definition of video games.” “If we continue down the same path as we have in the past, people may become tired of gaming,” “Nintendo has strong views on how we should run our company. We consider ourselves, above all else, as a gaming company. We believe other companies (in the console marketplace) see themselves primarily as technology companies.” “The game has changed, ... and the way the game is played has to be changed.” “We believe we know what makes a good game better than anyone else.” Top 3 competitors Microsoft, Sony, Apple Revenue "Create something unique" 独創 4,928 Employees as of March 2012 Sales Nintendo is a public corporate company. Its stock symbol is NTDOY. History Satoru Iwata Nintendo was founded as Marufuku Company, Ltd. in Kyoto, Japan, in 1889 by Fusajiro Yamauchi. Marufuku made playing cards for the Japanese game of Hanafuda. Name was changed 1951 to Nintendo Made card and board games,as well as toys until first video game is designed 1975 First console, Famicom, released 1983 in Japan, 1986 in America Nintedo Of America Redmond, WA “At Nintendo we are proud to be working for the leading company in our industry. We are strongly committed to producing and marketing the best products and support services available. We believe it is essential not only to provide products of the highest quality, but to treat every customer with attention, consideration and respect. By listening closely to our customers, we constantly improve our products and services” Nintendo Of Europe Großostheim, Germany. Nintendo Headquarters Kyoto, Japan (http://www.youtube.com/watch?feature=player_detailpage&v=9AkPdAWfFjI) (fourth president) Profits Transformational Leader Their advantage is innovation, a wider target market and familiarity/nostalgia. Sources http://www.vgamingnews.com/news/nintendo-announce-201011-profits/ http://www.nintendo.com http://www.fundinguniverse.com/company-histories/nintendo-company-ltd-history/ http://bi.galegroup.com.portal.oaklandcc.edu/essentials/company/1198654?u=lom_oakcc http://www.famouslogos.us/nintendo-logo/ http://gatton.uky.edu/GSRP/Downloads/Issues/Spring2011/Nintendo-%20Maintaining%20Competitive%20Advantage.pdf http://thinkexist.com/quotes/satoru_iwata/ http://i360institute.com/wp-content/uploads/2011/10/Nintendo_Revolution.pdf

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