Case Study on Nintendo Wii
Course Title: Global Marketing (MKT-633)
Submitted to
Dr. Mohammad Tayeenul Hoque
Marketing & International Business
North South University
Submitted By:
Name ID
MD. Ashikur Rahman 1915060660
Kawnain Ahmed Chowdhury 1925225660
Mahathir Mohiuddin 1915413660
Israt Jahan 1915067660
Dip Das 1825055660
Case Study on Nintendo Wii
Ques 01) What were Microsoft’s motives in entering the games console market with
Xbox?
Ans: Microsoft Company has decided to venture into the console market in 2001. The
main reason that the company made the decision is because the gaming industry is a
very huge industry which can generate profits. According to given information the
audience of global games is estimated between 2.2 and 2.6 billion people and
the software market is expected to increase from $116 Billion in 2017 to $143.5 in
the end of the year of 2020. Therefore, Microsoft’s motive is definitely hoping
that they will be able to lead the industry.
Microsoft continues to target the ‘serious’ gamer segment with the Xbox 360.
The Xbox graphics, games and Xbox live internet gaming have been popular
with the core user segment, primarily young males. The sales was in US market
nearly 50 percent of the overall Xbox sales. Xbox is the console with the
highest game attach rate. This is defined as the average number of games
each console owner buys. For the Xbox 360 Microsoft managed a ‘games per
console’- the highest in the industry.
From the perspective of international marketing, Microsoft wishes to assess
the global market opportunities. Microsoft must have done the extensive
marketing research prior the decision. The strength of Microsoft’s software
distribution network has also kept the company alive in the business. Allowing
Microsoft to have presence in more worldwide markets than Nintendo.
Microsoft is strongly positioned in countries like China, India, Malaysia and
South Africa, all of which are growth markets and this is promising for future
sales of Xbox.
Ques 02) What are the competitive advantages of Microsoft Xbox and Sony
PlayStation 3?
The competitive advantages are:
CPU Power: Both PS 3 and Xbox 360 have processors that are far more
powerful than most PCs, let alone Nintendo Wii.
Sound System: Both PS3 and Xbox 360 have Dolby 5.1 (sound system)
Storage (hard disk): PS3 and Xbox 360 both have provisions to store
games in their hard disks.
HD video: Both the PS 3 and Xbox 360 use high-end graphics chips that
support HD games and are prepared for High Definition TV.
DVD: Both Sony and Microsoft provide the DVD opportunity. Sony even
includes a Blu-ray drive.
Connectivity: the Xbox especially has positioned itself as the online
games console with multi-player functions.
Ques 03) What are the competitive advantages in the business model of Wii?
Ans: There are some competitive advantages of Wii in the business model
other than Microsoft Xbox 360 and Sony PlayStation 3. These competitive
advantages are based on the relationship between ‘relative performance
level’ that is perceived by customers and ‘factors of the competition’. Such as:-
Cost Advantage compared to rival: Wii is 30-40 percent cheaper than
Xbox 360 and PS3.
Motion controllable: With its innovative motion control stick Wii adds new
value to game playing. The stick integrates the movements of a player
directly into the video game (tennis, golf, sword fights, etc.).
Unique gameplay: The new Wii gaming console senses depth and motion
from players, thus adding a whole new element to the play experience.
Family oriented (Large public): With the motion control stick Nintendo
opens up the console world to a completely new public of untapped non
gamers from the age of app 30. Parents to the teens and even
grandparents are getting easily into how to have game fun on the Wii.
Wii have strong brand name image as they are the first mover in the
console gaming market. And they have also strong global distribution
capability.
Ques 04) What do you think are Nintendo’s chances of creating a long-term
blue ocean with Wii?
Ans: Nintendo has been the market leader in the gaming console industry since
time immemorial because of the conformance and relation they were able to
form with their target market, namely, families and millennials. Starting from
creating a unique and catchy moniker to a sleek logo, Wii has changed the rules
and invented a type of gaming with massively enhanced interaction between
player and game. The aim of Blue Ocean is to expand the current base of
consumers in Japan and America, to cause a widespread viral outburst of the
brand across people who have never even though of engaging with it. By
depicting the current market space and relative offering level for the major
attributes that companies compete on, it helps visualize which offers cost more
to compete on, along with identifying values to eliminate, reduce an/or raise
and finally helps to identify never before seen values. Nintendo really cares
about people’s health, and helps develop muscle strength and coordination and
reducing the risk of falls for people with Parkinson’s disease. So, keeping all
these in mind, we believe the chance of creating a long term blue ocean with
Wii are quite substantial albeit they have crucial dependencies on sub-
suppliers for both hardware and software.
