SWOT Analysis of Nintendo

Nintendo was established in 1989 and it is a foundation of Japanese company.  Its beginning idea was to make handmade cards known as hanaufda. After an unsuccessful effort, they decided to change the direction of the company and they got achievement in the interactive entertainment structure and software industry. The company was known as Nintendo Playing Card Company after their success in the gaming field they changed their name to Nintendo Company Ltd. In 1963. From the time then, Nintendo Co. has been making different video games and system that can be used for gaming are on the top in their particular type. They have established an advanced edition of their own gaming scheme and it is known as Super Nintendo.

Strengths

• The sign and brand of Nintendo is accepted globally as a leading electronic gaming brand.

• Nintendo has grown their business around the world so magnificently that this is one of the leading gaming among all game making companies in the world.

• Their Nintendo DS is mostly admired because it is an ideal to carry on travel and on the top of that this gadget will keep children entertained.

• Another device Wii is a full family entertainment package. Eventually, the device is now famous in the family circle.

• Not only they have a strong brand name but they have made a life time position in the market. They are one of the leading companies around the globe.

Weaknesses

• There is a lot of gossip about the margin of Nintendo’s per unit that it is very small. And due to this margin they are facing financial difficulties.

• They have many suppliers around the globe and it is very difficult for them to manage the supply chain to these countries.

• Margins are very important in the gaming industry. And they are having low margin percent age.

Opportunities

• The main opportunity for the company’s fame is the launching of new small and large sectors in their gaming devices.

• After releasing their new gadget Wii in the market, they have got an immense response from the consumers. By inventing such devices and bringing them in the market they will get more popularity.

• Their gadgets are Internet enabled and Wi-Fi, if they continue making such gaming systems they will increase their number of customers.

Threats

• If they ever use cheap material in their device manufacturing than they will lose their customers that have been with them for many years.

• Now some customers are changing their game devices or systems regularly, if any other makes a more advanced game than the buyers will tend to move to that brand instead of Nintendo.

• The main competitors for Nintendo that will compete with Nintendo in the upcoming times are Sony and Microsoft.

• These companies will be great risk for Nintendo.

• These three companies will vie in the upcoming years but they may face some more challengers from the developing countries like India and China as their economy is getting entrepreneurial.

References

Nintendo, Official Website. (2012). Available at: http://www.nintendo.com/corp/index.jsp Retrieved on: 27th Nov, 2012.

Yahoo Finance. Nintendo. (2012). Available at: http://finance.yahoo.com/q?s=NTDOY.PK  Retrieved on: 27th Nov, 2012.