Nintendo Entertainment System is a video game manufacturing company which started in Japan in 1985 and has expanded to more than 17 other countries, including the U.S. The introduction of their first video game system, the NES, was an instant hit. Selling over 60 million units, Nintendo revitalized the video game industry. Over the years, Nintendo released several more successful gaming systems, such as their Game Boy, Super Nintendo, GameCube, Nintendo DS, and Wii. Nintendo is now worth $85 billion and Is the third largest company in all of Japan. Nintendo has been around for a long time and will continue to operate due to its tremendous success in the gaming business.

PROFILE:

• “At Nintendo we are proud to be working for the leading company in our industry. We are strongly committed to producing and marketing the best products and support services available. We believe it is essential not only to provide products of the highest quality, but to treat every customer with attention, consideration and respect. By listening closely to our customers, we constantly improve our products and services.”

• “We feel an equal commitment toward our employees. We want to maintain an atmosphere in which talented individuals can work together as a team. Commitment and enthusiasm are crucial to the high quality of our products and support services. We believe in treating our employees with the same consideration and respect that we, as a company, show our customers.”

• STRENGTHS• Market Reputation:

• Market reputation for manufacturing fun products• Reputation for specializing in manufacturing games

• Product Strength:• Nintendo Wii & Nintendo DS• Ease of use for these new products• Medical (Senior Center’s) & Family Use

• International Company:• Have expanded to international markets

• Ownership of Seattle Mariners:• Profits coming in, making Nintendo more financially

stable

• WEEKNESSES• Only in One Industry:

• Since they only have a relatively small product line, this could cause problems

• Internet Gaming:• More and more people are going online to play games,

but Nintendo doesn’t offer online gaming• Potential Microsoft Take-over:

• They offer Xbox, a very competitive product for their Wii system

• Microsoft’s game “HALO” has become a huge hit

• OPPORTUNITIES• Increasing Market Share:

• Being the third largest company in all of Japan, Nintendo is worth $85 Billion

• Brand Out and Diversity:• The Gaming industry has become a major market, giving

Nintendo more opportunities to branch out• New Games and Game Systems:

• Huge market and sales opportunities for Nintendo• Gamers can purchase and download classic games or new

games straight to their Wii using an internet connection

• By providing a digital rather than a physical product, Nintendo can cut back on costs, and makes it more convenience for the consumer, thus making it more attractive in the gaming market

• THREATS• Lack of Product Diversification:

• Nintendo is only in the gaming market with few products• Their major products right now are only the Wii and

Nintendo DS• Sony and Microsoft:

• Nintendo’s main competitors who have proven their success in several markets

• Electronic Arts:• Major game producer which has a lot of successful good

products in the market, games which are mainly produced for Sony’s Playstation

• Internet and Computer Gaming:• A lot of gamers are turning to computer and online

gaming, a potential threat for taking away loyal Nintendo consumers

• Economics Threats:• Another recession or financial shortcomings might cause

costumers to stop consuming Nintendo’s products

Competitors:

· PC Games· PlayStation 2· PlayStation 3· Sony PSP· Xbox 360· Nintendo Wii· Nintendo DS· Wireless

· Retro· Xbox· GameCube· GBA· PC Downloads· Top Games· VE3D Game News· Vault Network

Nintendo tries to differentiate itself from its competitors by focusing on appealing to a neglected segment of the gaming market, a market that its competitors basically are ignoring but provides great profits. While Microsoft and Sony try to focus on the teenage "hard-core" demographic segment of the gaming market, Nintendo tries to make game consoles and games that will appeal to children, teens, grownups, and elders. They try to satisfy both hardcore gamers and casual gamers who want a simpler, more intuitive gaming experience. Unlike its competitors, both of which are powerful players in consumer electronics and business software, Nintendo is primarily a video game company. They try to provide lower prices than its competitors for both consoles and games to appeal to a wider range of customers. Nintendo makes gaming consoles and games that are simple and easier to use than consoles and games made by its competitors. It manufactures game consoles which provides gamers with a more enjoyable experience and much more intuitive interface than other consoles