Nintendo's Disruptive Strategy

Paper Summary:

The paper explains that Nintendo created the three new target consumer groups of non-gamers, family members and the health and fitness industry with the development of the Wii. The paper discusses how being the first to launch a radically different console gave the company its competitive advantage which it then translated into its promotional strategy. The paper emphasizes how Nintendo's approach is disruptive because its strategy of attracting the non-gamers was changing the rules on which the competitive rivalry was based. The paper concludes with recommendations for Nintendo to capitalize upon this new brand equity.

From the Paper:

"Nintendo's two major competitors in the industry were Sony and Microsoft. Nintendo's experience showed that the games must strike a balance and not be too complex which would alienate certain segments of the market. These considerations led to the launching of the Wii which facilitated the implementation of a disruptive strategy in catering to non-traditional customers. There were three main segments: non-gamers, family members and the health and fitness industry."

Sample of Sources Used:

• Aaker, David A. (2004). Strategic Market Management. McGraw Hill/Irwin.
• Dess, Gregory G., et al. (2007). Strategic Management: Creating Competitive Advantage. McGraw Hill/Irwin.
• Hill, Charles., and Gareth Jones. (2007). Strategic Management Theory: An Integrated Approach. McGraw Hill/Irwin.
• Kotler, Philip., and Gary Armstrong. (2005). Principles of Marketing. Prentice Hall.

More papers on Nintendo's Disruptive Strategy:

• Case Study # 147277 : "Nintendo Wii Integrated Marketing Campaign"
• Business Plan # 50994 : "Disruptive Innovation"
• Article Review # 136045 : "Nintendo's Wii Gaming Console"

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