The paper "Strategic Management at Nintendo Co" is a good example of a management case study. The case study on gaming industry involves Nintendo Co. that has been having been one of the leading companies in this industry in for various decades. Nintendo Co. Began as a manufacturer of playing cards in Japan in twentieth-century and by 1970s, it began focusing on electronic videogames and toys. The company became the video game industry leader in ’ 80s and ’ 90s with popular titles of games and consoles of home video games. Competitors in this industry emerged in the 90s where the video game market was expanded by the Sony’ s release of the PlayStation platform and also the rise of improvement and popularity of PC technology resulted to use of PCs as platforms for gaming.
In the past decades in the video game industry, Nintendo has been a major contender and has also been facing challenges during the years in development and maintenance of competitive advantage. The company gained a stronghold due to the introduction of the Wii console as a leader in the industry of games.
Various competitors in this industry such as Microsoft and Sony are gaining on the competitive advantage of Nintendo which is making Nintendo re-evaluate and monitor the company’ s strategies. The company must focus on influencing its competitors’ customers for maintenance of competitive advantage through continual development of technologies in innovation and considering the social networking impact on the gaming industry. Microsoft and Sony have also been developing at a higher rate and are gaining market in this industry which makes them main competitors with Sony’ s popularity being attributed to PlayStation while that of Microsoft being the development of Xbox game console in the 1990s and 2000s respectively (Muncy 2011). Using the PESTEL framework, the influences of the gaming industry are categorised into political, social, economic, environmental, technological and legal main types.
The political factors influencing this industry include regulation on foreign trade, social and taxation welfare policies. The government has the obligation to control the frames as video games play with people’ s emotions which also threaten peace and law of a multicultural country. Regions such as Japan and the US are dominated by the business of video games thus; it becomes the main contributor to the countries’ GDP.
The income in this industry’ s consumers affects the buying behaviour. For instance, the low cost of manufacturing was the main reason that made Nintendo sell games at a nominal price which led to an increase in the company’ s sales. Social factors influencing the gaming industry include distribution of income, population demographics, changes in lifestyle, consumerism, and social mobility behaviour of consumers and level of education. The action of Nintendo in opening the showrooms was the attraction and influencing of customers and show on interest in fulfilling the needs of the customers.
Also, the industry influences people’ s culture by making the children aggressive thus is impacting the industry. The technological law in this industry is very essential as its competitive advantage is based on technology. The role of Nintendo ranging from cards playing through toys to video games an introduction of each console includes a lot of changes in technology. The Nintendo Wii capability online was a major change in video game technology.
The gaming industry utilises many resources which include a lot of plastics, power consumption in computer or television when playing games. Nintendo games ensure low utilisation of power. In environmental protection and ‘ green’ lifestyle practice, Nintendo facilitates the effort in challenges the game players to improve the environment by creating ‘ Chibi-Robo- park patrol’ and ‘ super Mario shine’ . Legal issues that the game industry faces include copyrights, trademarks, online ownership, licensing, intellectual property demands and recognition of revenue. Also, other issues include product and health safety (Abangkuraden 2009).
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