Nintendo Research Paper Example | Topics and Well Written Essays - 1500 words

Nintendo - Research Paper Example The Staying power projects that the firm has what it takes to remain in the market in posterity, since they produce quality products, are environmentally conscious and have worked to create a good reputation among their clientele base (Nintendo). The porter 5 analyses shows that Nintendo does not face a serious threat in regard to supplier power or new entrants as they control most supplies and the market is not currently very permeable due to the dominance of the firms already in it. Customer bargaining power is also limited due to the low cost of Nintendo’s products in comparison to rival firms; this is however not a long term situation and could easily change based on rivals strategic management. Threats from competing firms as well as substitute goods is substantially high since the other firm in the market provide alternatives, sometimes better ones that could reduce Nintendo’s customer base. Introduction Nintendo is one of the world’s oldest commercial firm s in the world and without doubt the oldest gaming company in existence today. It was started in 1889, 124 years ago as a Japanese playing card company and today, it has a $15 billion franchise with thousands of retail outlets world over. Despite its retrospective dominance, today it is faced with stiff competition from new companies such as Microsoft and Sony, which have taken over its lead. Nintendo introduced and popularized several products like coin operated video game machines and the NES (Nintendo Entertainment System), SNES (Super Nintendo Entertainment System), the world famous Gameboy and the Nintendo 64. With time, it has become a household brand with loyal customers and it is estimated that over 40 percent of Americas households have at least one branded product form the firm. Today, the firm is not only profitable but it is also among the market leaders concerning innovation and productivity as well as ethical business practices. However to realize the degree of success it has achieved required astute strategic management to ensure the firm not only remained productive but also relevant and dynamic enough to align itself to the changing times and when need arose be the force for change. The following analysis are thus carried out to present a clear picture of the strategic management decisions that have propelled the firm to its current position as well as explicate its current industrial placement. Analysis A SWOT analysis is a critical examination of the Strengths, Weakness, and Threats and opportunities facing a business, this is one of the most popular and reliable business analysis framework since it is all-inclusive and accommodating. One of the firm’s most significant strengths is to be found in its extensive global latitude that has allowed it to realize a geopolitical presence of near universal proportions with openings in majority of the world countries. Although most of the manufacture and design is primarily carried out in Japan , it has strong distribution networks that are have taken full advantage of the advent of globalization to make itself relevant and available. The global scope of the business means it is not overly reliant on particular markets considerably reducing the overall risk by creating a variety of contingencies. Its brand and logo have been adopted worldwide and acquired a good reputation as an electronic as a