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Nintendo Wii Case Study 4.1 International Marketing Bryan Witt David Zaki

Blue ocean Red Ocean strategy

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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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Page 1: Blue ocean Red Ocean strategy

Nintendo Wii Case Study 4.1

International Marketing

Bryan Witt David Zaki

Page 2: Blue ocean Red Ocean strategy

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.

Page 3: Blue ocean Red Ocean strategy

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.

Page 4: Blue ocean Red Ocean strategy

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.

Page 5: Blue ocean Red Ocean strategy

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

Page 6: Blue ocean Red Ocean strategy

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.

Page 7: Blue ocean Red Ocean strategy

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.

Page 8: Blue ocean Red Ocean strategy

Growth and Profit Strategies

Page 9: Blue ocean Red Ocean strategy

Red Ocean Blue Ocean

“Bloody competition

to take a larger share

in the market”

“Why compete

when you don’t

have to ?”

Page 10: Blue ocean Red Ocean strategy

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.

Page 11: Blue ocean Red Ocean strategy

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.

Page 12: Blue ocean Red Ocean strategy

A MORE EXCITING game console!!!

Page 13: Blue ocean Red Ocean strategy
Page 14: Blue ocean Red 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

Page 15: Blue ocean Red 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

Page 16: Blue ocean Red 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

Page 17: Blue ocean Red 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

Page 18: Blue ocean Red 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

Page 19: Blue ocean Red 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

Page 20: Blue ocean Red Ocean strategy

Factors of competition

Page 21: Blue ocean Red Ocean strategy

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

 

Page 22: Blue ocean Red Ocean strategy

Did Blue Ocean strategy work for Nintendo ?

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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.

Page 24: Blue ocean Red Ocean strategy

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.

Page 25: Blue ocean Red Ocean strategy

New Blue Oceans Sony creates Blue Ray

more data storage on a disc

Success is unsure at this point

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New Blue Oceans Microsoft Kinect is spatial recognition

helps MS gain leading market share

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New Blue Oceans Nintendo unveils it’s next generation of

console, the Wii U

A slightly different direction

Page 28: Blue ocean Red Ocean strategy

Thank You