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how Nintendo applied the Blue Ocean Red Ocean strategy with their Wii product and it's impact on the their market share and profit
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Nintendo Wii Case Study 4.1
International Marketing
Bryan Witt David Zaki
History and background
• A video game console is just a computer that is made only.
To Play games.
• These systems started to gain popularity in the 1970s with consoles that played only Pong.
• Current console success started in 1985 with Nintendo’s super Smash Brothers.
History and background
• A video game console is just a computer that is made only.
To Play games.
• These systems started to gain popularity in the 1970s with consoles that played only Pong.
• Current console success started in 1985 with Nintendo’s super Smash Brothers.
History and background
• A video game console is just a computer that is made only.
To Play games.
• These systems started to gain popularity in the 1970s with consoles that played only Pong.
• Current console success started in 1985 with Nintendo’s super Smash Brothers.
Marketing
The strategy for marketing consoles is
based on:
– Better technologies/graphics Ex: HD, Blue Ray and 3D
– Better games Ex: FIFA, Halo and Mario
Production
• Production started in the US then
moved to China and Japan.
• Development is expensive but the
consoles cost little to produce.
• The longer a product is sold the more
profitable each sale.
Competition
• As the market became more
profitable:
• Computer companies began investing
in the market.
• Sony created it’s famous PlayStation
• Microsoft introduced the Xbox and
Xbox live.
Growth and Profit Strategies
Red Ocean Blue Ocean
“Bloody competition
to take a larger share
in the market”
“Why compete
when you don’t
have to ?”
Red Ocean
§ Basis of competition is trying to get a
bigger share in the same defined
market.
§ Boundaries are defined and accepted.
§ Competitive rules of the game are
well-known and predefined.
§ example.
Blue Ocean
§ All the industries not in existence
today.
§ You create the demand rather than
fight over it.
§ You define the rules for competition.
§ You are the ONLY player in such a
market.
A MORE EXCITING game console!!!
§ Unusual Gender for the market-Females
§ Unexpected age – Elders
§ Different target group - Families
§ Different way of playing - Motion
§ It’s no longer about controllers
§ They simply jumped in another ocean
by changing the whole game console
market
How Nintendo applied Blue Ocean Strategy
§ Unusual Gender for the market-Females
§ Unexpected age – Elders
§ Different target group - Families
§ Different way of playing - Motion
§ It’s no longer about controllers
§ They simply jumped in another ocean
by changing the whole game console
market
How Nintendo applied Blue Ocean Strategy
§ Unusual Gender for the market-Females
§ Unexpected age – Elders
§ Different target group - Families
§ Different way of playing - Motion
§ It’s no longer about controllers
§ They simply jumped in another ocean
by changing the whole game console
market
How Nintendo applied Blue Ocean Strategy
§ Unusual Gender for the market-Females
§ Unexpected age – Elders
§ Different target group - Families
§ Different way of playing - Motion
§ It’s no longer about controllers
§ They simply jumped in another ocean
by changing the whole game console
market
How Nintendo applied Blue Ocean Strategy
§ Unusual Gender for the market-Females
§ Unexpected age – Elders
§ Different target group - Families
§ Different way of playing - Motion
§ It’s no longer about controllers
§ They simply jumped in another ocean
by changing the whole game console
market
How Nintendo applied Blue Ocean Strategy
§ Unusual Gender for the market-Females
§ Unexpected age – Elders
§ Different target group - Families
§ Different way of playing - Motion
§ It’s no longer about controllers
§ They simply jumped into another ocean
by changing the whole game console
market
How Nintendo applied Blue Ocean Strategy
Factors of competition
Competitors’ Strategies
• Microsoft’s Xbox 360
- Target the ‘serious’ gamer: young males
- Better graphics, live internet gaming
• Sony’s PlayStation 3
- Bigger but less focused target group
Did Blue Ocean strategy work for Nintendo ?
The future
• The market is trending towards
motion controls and special
recognition.
• This was shown by the success for
Nintendo’s Wii.
• However the market also favors more
powerful systems.
Conclusion
• Sony’s PS3 has developed wand
controls for motion recognition.
• Microsoft has also developed the
Kinect for spatial recognition.
• This shows that a Blue Ocean never
stays Blue. Competition often turns it
into a Red Ocean and the cycle goes
on.
New Blue Oceans Sony creates Blue Ray
more data storage on a disc
Success is unsure at this point
New Blue Oceans Microsoft Kinect is spatial recognition
helps MS gain leading market share
New Blue Oceans Nintendo unveils it’s next generation of
console, the Wii U
A slightly different direction
Thank You
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