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this paper examines nintendo corporation, a japanese multinational consumer electronics firm head quartered in japan
the firm is considered as the largest video game company by revenue since it was founded approximately 125 years ago (1889)
the name nintendo can be roughly translated from japanese to english as “leave luck to heaven” (liao, 2010)
it is important to mention that by the end of 2012 the company had sold 651
08 billion software units (nintendo, co
particularly, this study examines the innovation strategy of the firm and it has historically responded to threats and opportunities; it explains which sources of innovation and linkages the company uses to enhance its strategy, and analyses the processes that the company uses to scan for innovative ideas
it mentions the organisational structure and how it has supported or inhibited innovation, and graphically explains how the firm demonstrates learning to what regards its innovation performance
in other words, the following analysis will be based on tidd and bessant’s innovation audit (noke, 2013)
it is wise to explain what an innovation strategy is; before further mentioning the firm’s particular innovation strategy that has established and used
innovation strategy is a plan made by an organisation to encourage advancements in technology or services usually by investing in research and development activities (rothwell, 1992)
nintendo used the ‘red ocean strategy’ (ros) at the beginning of its establishment
the ros is a strategy that focuses on and competes in the existing market space, beats the competition, exploits existing demands, aligns the whole system of a firm’s activities with its strategic choice of differentiation or low cost and makes the value-cost trade-off (kim & mauborgne, 2012)
in other words, the ros is a strategy used by a firm to focus on its existing market audience and tries to encourage its hardcore consumers even more
in the case of the video games industry, nintendo’s competitors use such a strategy with the ultimate aim to beat the competition, to exploit even more the existing demand and to align the whole system of their activities
the company dominated the market in the 1980s and 1990s with its new approach to designing better graphics and new games
however, following the launch of sony playstation in the mid-1990s and microsoft xbox in the early 2000s, nintendo lost market shares and fell on hard times (liao, 2010)
therefore, the firm had to change strategy and make a radical break in comparison with the traditional way of video games
the goal of nintendo was to find a new strategy that would change the fundamentals and the rules of engagement in the video games industry
however, what differentiated the position of nintendo in the market and made it to stand out from the crowd? nintendo decided to focus on the unique needs of its target customers and maximise the value(s) for them (nintendo, co
in order to thoroughly recognise and comprehend the needs of their customers, they conducted a segmentation analysis which used demographic indicators such as age, gender, location and profession
nonetheless, this time nintendo introduced the blue ocean strategy (bos); which is a strategy that estimates the users of the products of the company which are outside the segment
in other words, it is a strategy that creates uncontested market space, recreates the competition and makes it irrelevant, creates and captures new demands, breaks the value-cost trade-off and aligns the system of the firm’s activities in pursuit of differentiation and low cost (kim & mauborgne, 2012)
nintendo hit the peak and fulfilled its cause through the launch of the nintendo wii in 2006; it sold more than 51 million platforms in its first year of release
as a result, it accomplished having the fastest-selling console in the history of video games
it also broke the mesh between console innovation and ‘chip technology’ and converted gaming to more of a collective,

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