Thesis on "E-Commerce Plan Nintendo's Global Leadership"
Thesis 10 pages (2844 words) Sources: 1+
[EXCERPT] . . . .
e-Commerce PlanNintendo's global leadership in the development, marketing, promotion, sales and service of their best-selling gaming modules, gaming software and interactive games has also created exceptional growth for third party games, development kits and accessories. The intent of this e-commerce venture plan is to create an e-commerce business that offers Nintendo gaming modules, gaming software and interactive games both from Nintendo and from third parties for sale globally. The e-commerce site will also have an innovative "build your own game" feature where customers can get online, design their own game and download it to use on the Wii, DS or DSi. This approach to mass customization of video games to customers' requirements will require that the 3rd party developers of Wii gaming modules, gaming software and interactive games all be coordinated to a common development standard. This development standard will ensure the integration of gaming segments and allow for customers to define multiple scenarios and gaming strategies. The coordination of development partners and suppliers is critical for the long-term scalability of any mass customization strategy (Jitpaiboon, Dangols, Walters, 2009). While Nintendo concentrates on its core areas of inventing, manufacturing and marketing hardware and software for its video game systems there are many users' preferences in game design and topics not addressed. Having a website that offers Nintendo Wii, DS and DSi custom configurable games in addition to existing gaming modules, gaming software and interactive games is the intent of this e-commerce venture plan.
Company Description
Differentiating away f
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Industry Analysis
Of the many types of games produced in 2008, the most popular continued to be action-adventure, sports and sports racing applications. Table 1, Comparing Console and PC Game Sales, 2008 provides percentage share of console games sold by category. What is useful from this data is that role-playing games have significantly smaller percentages of total sales which mean there is greater opportunity to customize them over time. In planning this new e-commerce venture the core new business development concepts of Blue Ocean Strategies (Kim, Mauborgne, 2004) need to also be kept in mind.
Table 1: Comparing Console and PC Games Sales, 2008
Genre
Percentage
Share of Console Games
Genre
Percentage
Share of PC Games
Action
27.5
Strategy
35.4
Sports
17.0
Role Playing
13.9
Racing
10.8
Family Entertainment
12.7
Shooters
10.6
Shooters
10.9
Role-Playing
9.5
Adventure
5.7
Family Entertainment
9.3
Children's Entertainment
5.7
Fighting
4.6
Sports Games
3.5
Adventure
3.4
Action
3.4
Strategy
2.7
Other Games
2.8
Other Games
2.0
Flight
2.5
Children's Entertainment
1.6
Racing
2.4
Arcade
0.9
Arcade
1.1
Flight
0.9
Fighting
N/a
Source: (Hammill, 2007) (Nintendo Investor Relations, 2009)
In assessing the target market growth, the consensus estimate of the global video game and console market however is flat at 6.1% growth from 2008 into 2009. Based on an analysis of Nintendo's financial statements and annual reports the following forecast revenue growth assumptions have been produced.
Table 2: Forecast Revenue Growth Assumptions, Nintendo Corporation, 2008-2013
Forecast real revenue growth %
2008
2009
2010
2011
2012
2013
as published July 2008 (%)
9.5
12.5
7.9
6.6
13.5
10.6
New Revised Forecast (%)
9.5
6.1
8.8
12.5
11.1
10.5
Source: Nintendo Investor Relations (2009)
Nintendo has attracted significant new competitors including Microsoft and Sony, both of which are seeking to create their own console-based businesses in this industry. Table 3, Worldwide Game Console Sales by year, 2000 -- 2008, illustrate how this industry continues to attract competitors and how rapid Nintendo's growth has been as a gaming platform.
Table 3: Worldwide Game Console Sales by Year, 2000 -- 2008 (Shipments in Millions)
Figure 1, presented by Mr. Saturo Iwata, CEO of Nintendo shows the significant competitive growth of the Wii from both a software sales growth relative to competitors as well.
Figure 1: U.S. Software Market 2008
Source: Nintendo Investor Relations (2009)
For the proposed e-commerce venture the most critical factors are first the successful launch of the business, specifically its unique value proposition of supporting "build your own" games and a subscription-based pricing model. Second, the execution of the marketing strategies for the e-commerce venture need to also be well defined, well-financed and well-executed for the online business to rise above the noise level of millions of others today. This will require intensive use of online marketing, Web 2.0 technologies (O'Reilly, 2005) and social networking (Bernoff, Li, 2008).
Market Analysis
Despite a global recession significantly slowing down consumer spending, Nintendo continues to project overall growth throughout 2009 and into 2010. Table 4, Nintendo Assessment of Global Market Conditions for Video Games, reflects how severe Nintendo's management sees the downturn in the near-term and the growth prospects for the future. This is invaluable insight in planning the e-commerce venture as it provides a glimpse into how to sequence spending on new "create your own game" spending programs and also when to ramp up or slow down merchandising spending.
Table 4: Nintendo Assessment of Global Market Conditions for Video Games
1Q09
2Q09
3Q09
4Q09
1Q10
2Q10
3Q10
4Q10
Quarterly Revenue $m
12809.8
10025.7
10385.4
15061.0
Real Revenue Growth
-20.7
3.5
-0.4
33.6
-25.9
5.6
3.5
45.0
Source: Nintendo Investor Relations (2009)
The combination of Tale 4 and Figure 2, Analysis of Games, Consoles and Accessory Sales, 2008 shows the dominance of games in the structure of the industry to date and for the foreseeable future. Clearly games dominate this industry from sales and profit perspective.
Figure 2: Analysis of Games, Console and Accessory Sales, 2008
Product/Services
Share
Games/Software
67.6%
Consoles
18.0%
Accessories
7.8%
Online Subscriptions
6.6%
Source: Nintendo Investor Relations (2009)
In January, 2009 Nintendo held a global shareholder's meeting and presented the two slides shown in Figure 3 and Figure 4 respectively. Taken together they show exceptional growth of the Wii platform, further underscoring the growth potential of a "create your own games" e-commerce venture.
Figure 3:… READ MORE
Quoted Instructions for "E-Commerce Plan Nintendo's Global Leadership" Assignment:
This is about e-commerce venture besiness. You have to creat own your venture business online. There is table of contents that you need to describe your business.
1.Executive summary(including why you want to open this business online)
2.Company Descrition
3.Industry Analysis-industry structure,key success factors,trends etc.
4.Market analysis-segmentation and target, buyer behaviors, marketshare etc.
5.Marketing plan-overall Marketing strategy, pricing strategy,sales process etc.
6.Company stucture and management
7.Operation plan-operation model and procedures,business location, facilities and equipment etc.
8.Product(or service)design and development plan-development status,challenges and risks, costs etc.
9.Financial projections-sources and uses of funds statement, assumption sheet,
10.Ration analysis
How to Reference "E-Commerce Plan Nintendo's Global Leadership" Thesis in a Bibliography
“E-Commerce Plan Nintendo's Global Leadership.” A1-TermPaper.com, 2009, https://www.a1-termpaper.com/topics/essay/e-commerce-plan-nintendo-global-leadership/63005. Accessed 28 Sep 2024.
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