GLOBAL MARKETING DECISIONS DECEMBER 2021

Nintendo’s Six-Side Strategic Marketing Audit

Table-01
Table-01SWOT
SWOTAnalysis
Analysis
Strength
Strength Weakness
Weakness

1.1.Product
Productportfolio-:
portfolio-: Action
Action&&Adventure,
Adventure,Education
Education&&Application,
Application, 1.1.Nintendo
Nintendomarket
marketwidely
widelyspread
spreadthrough
throughout
outthe
theeuropean
europeanmarket.
market.
First Person Action, Music & Fitness, Party, Puzzles & Strategies, Role Playing, highly depended on these markets indicate
First Person Action, Music & Fitness, Party, Puzzles & Strategies, Role Playing, highly depended on these markets indicate higher risk on the market higher risk on the market
Simulation
Simulation&&Racing,Racing,Integrating
Integratingwith
withPopular
PopularAuthorized
AuthorizedInnovative Hardware 2.2.Weak
InnovativeHardware Weakattack
attackstrategy
strategy-- Criticized
Criticizedfor
fornot
nottaking
takingSony
Sonyhead
headon
on
2.2.Well
Well establishment -: The market situation has evolved into a global technology 3. Unsuccessful alliances - Nintendo & Sony split in the past &became
establishment -: The market situation has evolved into a global technology 3. Unsuccessful alliances - Nintendo & Sony split in the past & became
Company
Companythat thatmakes
makeshardware
hardwareand andsoftware
softwarefor foritsitshome
homevideo
videogame
gamesystems
systemsand and aacompetitor
competitorfrom
fromaapartner
partner
introduced
introducedititfirst
firsthand.
hand.TheTheworld's
world'sgaming
gaminginstrument,
instrument,whichwhichwaswaslisted
listedononthe
the 4.
4. Failed console innovations -Wii
Failed console innovations -WiiUUworst-performing
worst-performingconsole
consoledespite
despite
Osaka
Osakaand andKyoto
KyotoStock
StockExchanges
Exchangesinin1962,
1962,entered
enteredthe theUnited
UnitedStates
Statesinin1979.
1979. technologically
technologicallyadvanced
advanced(non-appealing)
(non-appealing)effects
effects
3.3.Strengh
Strenghfinancial
financialbackground-:
background-: $15.8bn$15.8bnmarket
marketcapitalization,
capitalization,strong
stronganimal
animal
ride
rideperformance
performance50% 50%-60%-60%ofofhardware
hardwaresalessalesinin1995,
1995,2005
2005andand
Internal
Internal

2017.
2017.11Bn Bnsports
sportscarts
cartssold,
sold,68
68Mn Mnconsoles
consolesshipped
shippedglobally
globally(2020)
(2020)and and
24
24Mn MnMarch
March((2021),2021),Japan
Japan66Mn MnConsole
Console(2020)
(2020)87% 87%Market
MarketShare Share55
6%
6%ofofallallphysical
physicalsports
sportsininthe
thecountry.
country.
4.4.Productive
Productive alliance
alliance and
andpartnership
partnershipwith withdisney
disneycompany,
company,inorder
inordertotodevelop
develop
gaming
gamingproducts
productsand andgrowth.
growth. Because
Becauseboth both companies
companiesare arewell
wellknow
knowfor forthe
the
entertainmnet.
entertainmnet.
5.5.Global
Globalpresens
presens -Japan-based,
-Japan-based,US, US,Canada,
Canada,Spain,
Spain,China,
China,Russia,
Russia,Germany,
Germany,
France,
France, affiliates of Korea, Netherlands and Australia, WOS 27 supportinternationally
affiliates of Korea, Netherlands and Australia, WOS 27 support internationally
totounderstand
understand needs at the local level, 6 related missions, worldwide workforce,,
needs at the local level, 6 related missions, worldwide workforce
Products
ProductssoldsoldNintendo
Nintendo

Opportunities
Opportunities Threats
Threats
1.1.Entering
Enteringthe the professional
professionalgaming
gamingmarket
market-- ForForhard
hardcore
coregamers,
gamers, 1.1.Covid-19
Covid-19 Influence
Influence on
onCustomer
CustomerPurchases
Purchases -- AAcompany
companythat
thatsells
sells
streamers
streamersand and thethePCPCMaster
MasterRace.
Race. non-entertainment
non-entertainmentproducts
productsand
andsporting
sportinggoods,
goods,we wemay
mayappeal
appeal
2.Related
2.Relateddiversification
diversification-- Tablets,
Tablets,intelligent
intelligentsystems,
systems,newnewuses
usesfor
forconsoles
consoles ,,high
highrisk
riskbusiness
business(concentration
(concentrationrisk)
risk)and,
and,ififleft
leftunchecked,
unchecked,forget
forgetthe
the
Nintendo
Nintendothemed
themedhotels
hotels(Legoland),
(Legoland),diversify
diversifytotomitigate
mitigateconcentration
concentration exit
exitififleft
leftunchecked
uncheckedtotomaintain
maintainrisk.
risk.
risks
risks(IOT
(IOTintegration),
integration),
3.3.Incubate
Incubate highhighquality
qualityfirst
firstparty
partydevelopers
developers -- Leverage
Leveragecurrent
currentsuccess
successofof 2.2.Drop
Dropininindustry
industrywise
wise console
console sales
sales -- Console
Consolesales
salescontracted
contracted
high
highquality
qualityfirst
firstparty
partydevelopers
developersencouraging
encouragingexclusivity.
exclusivity. YOY
YOYbetween
between2013
2013-- 2016,
2016,significant
significant22.8%
22.8%sales
salesdecline
declineinin2016
2016
al
xternal
Extern

4.4.Utilizing
Utilizingemerging
emergingtechnologies
technologies forfordevelopment
development-- new newways
waystotoengage
engage 3.Threat
3.Threatofofsubscription
subscriptionmodel
model-- Gamers
Gamersmaymayplay
playhistoric
historicblockbusters
blockbusters
E

Customers
Customerscloud cloudcomputing
computing,,sinking
sinking and
andnot
notplan
plannew
newreleases
releases&&subs
subsmay
mayrise
risetotomaintain
maintaincost
costofofnew
newtitles
titles
technology
technology (AI, AR, VR and MR),IoT-enabled
(AI, AR, VR and MR), IoT-enabledconsoles,
consoles,forforsale
saleUsing
Usingbig
bigdata
data 4.4.Societal changes and health problems arise arround the playing
Societal changes and health problems arise arround the playing
5.5.Corona virus plague family time - Consumers enjoy virtual
Corona virus plague family time - Consumers enjoy virtual releases with releases with games
games
nonorestrictions
restrictionson onmovement
movementand andother
othersocial
socialactivities
activitiesAs
Asathletes
athletes 5.5.Cross
Cross platform
platformsoftware
software -- Microsoft
Microsoftremoved
removedinhibitions
inhibitionsfor
forgamers
gamers
(most
(most activated in the last 18 months), they reconnect withmemories
activated in the last 18 months), they reconnect with memoriesofofthe
the totomove between platforms (Console, PC), Microsoft's
move between platforms (Console, PC), Microsoft's video video
games they played when they were
games they played when they were younger. younger. game
gamesubscription
subscriptionservice
service
Table-1.1
Table-1.1Critical
Criticalsuccess
success factors,
factors,KeyKeyissues
issues and
andFuture targets
FutureGLOBAL
targets MARKETING DECISIONS DECEMBER 2021
Critical
CriticalSuccess
Success Factors
Factors Key
KeyIssues
Issues
1.1.Ceaselessly
Ceaselesslyfurther
furtherdeveloping
developingclient
clientexperience
experience 1.1.Adhere
Adheretotoemering
emeringTechnology
Technology
2.2.Supporting
Supportingadvancement
advancement-Innovation
-Innovation 2.Related
2.Relateddivesification
divesification
3.3.Investigating
Investigatingnew newsocial
socialexperiences
experiences 3.3.New
Newemerging
emergingMarkets
Markets
4.4.Manufacturing
Manufacturingkey keyorganizations,
organizations,coordinated
coordinatedefforts
effortsand
andcoalitions,
coalitions,joint
jointventures
ventures 4.4.Taking
Takingadvantage
advantageofofdevelopment
developmentininMobile
Mobilegames
gamesplan
planofofaction
action
for
forininnatural
naturaldevelopment.
development. 5.5.Variety
Varietyofofcompetition
competitionlevels
levels
5.5.Hierarchical culture that encourages creative mind and inventiveness
Hierarchical culture that encourages creative mind and inventiveness 6.
6. Dispersion of stage andprogramming
Dispersion of stage and programmingdevelopment
development
6.6.Experiencing learning curve effect
Experiencing learning curve effect
7.Overseeing
7.Overseeingcorporate
corporatestanding,
standing,brand
brandpicture
pictureand
andtrust
trust
Next 5 Year period
Next 5 Year period targets targets
1.1.Increase
Increasesales
salesvolume
volume
2.2.Increase
Increase profit (operatingand
profit (operating andnet
netprofit)
profit)
3.3.Assets growth
Assets growth
4.4.Market
Marketshare
shareandandMarket
Marketgrowth
growth
5.5.Brand equity
Brand equity
6.6.Increase
Increasethe themarket
marketcapitalization
capitalization
7.7.Target
Targetmarket
marketsegmentation
segmentation

Table-2
Table-2 PESTLE
PESTLE Analysis
Analysis
Factor
Factor Deciding
Deciding factor
factor Application
Applicationto
to Nintendo
Nintendo O/T
O/T Rating
Rating

Political
Politicaland
and **Political
Politicalstability
stability **Formulate
Formulate andandimplement
implementfixed
fixedrules
rules and
andregulations
regulations in
Tin
T order
order M
M
Leagal
Leagal assess
assess the
the transparency.
transparency.
**Geopolitical
GeopoliticalSanctions
Sanctions **Stopped
Stoppedmilitary
militaryattacks
attacks and
andunstable
unstable power
power transferT
transferT M
M

**Telecommunication
Telecommunicationrules
rules and
andregulations
regulations **Copy
Copyright,
right,protecting
protectingand
andPatent
Patentissues.
issues. TT M
M

Economic
Economic **Frequent
Frequentinterest
interestrate
rate fluctuations
fluctuations **Impact
Impactofof sales
sales including
includingexport
exportsales
sales TT HH
**Adverse
Adverse exchange rate system
exchange rate systemoror **Direct
Direct impact on price determination in export sales TT
impact on price determination in export sales MM
exchage rate depreciation
exchage rate depreciation
**House
House hold
holddisposal
disposalincome
income level
level **Impact
Impactof
of purchasing
purchasingpower
power of
of products.
products. ItItleads
leads toto TT M
M
demand deviations
demand deviations
Social
Social **Life
Life style
style pattern
patternand
andcultural
culturalchange
change **Determine
Determine the
the potential
potentialdemand
demandfor
forproducts
products TT M
M
**Disposal income
Disposal income
**Gender
Gender effect
effect
Environment/
Environment/ **Destruction
Destructioncarbonfootprint
carbonfootprint **Approach
ApproachtotoGreen
Greenmarketing
marketing OO LL
Ethic
Ethic **Environment
Environmentlaw law and
andpractices
practices **Awareness
Awareness on environmentalpollution.
on environmental pollution. OO LL
**Recycling, reuse & Reproduced
Recycling, reuse & Reproduced **Run towards the sustainability
Run towards the sustainability OO LL

Technology
Technology **Technology
TechnologyIncentives
Incentives **Rate
Rate of
of technology
technologydiffusion
diffusion TT HH
**Level
Level of innovationand
of innovation andautomation
automation **Rate of obsolences
Rate of obsolences TT HH
**Research and development
Research and development **Data
Data storage
storage privacy
privacyand
andconsumer
consumer right
right TT HH
**Technological
Technologicaladvancement
advancement **Speed
Speedofof technology
technologytransfer
transfer TT HH
 GLOBAL MARKETING DECISIONS DECEMBER 2021

Table-3
Table-3 Five
Five forces
forces Analysis
Analysis
Five
Five forces
forces factor
factor Determining
Determining factor
factor Application
Application
1.
1. Threat
Threat of
ofnew
newentrant
entrant ** Barriers
Barriers toto entry
entry Heavy
Heavyinvestment
investment ininproduct
product development,
development,

** Economics
Economics of ofscale
scale branding
brandingandand marketing
marketingcommunication
communication
** Cost
Cost advantage
advantage necessary
necessary
** Product
Product differentiation
differentiation
L ** Brand
Brand equity
equity
** Access
Access to to the
the distribution
distributionchannel
channel
** Capital
Capitalrequirements
requirements
2.
2. Bargaining
Bargainingpower
power ofofsupplier
supplier ** Number
Number of ofsuppliers
suppliers Hardware
Hardware suppliers
suppliers ofofNintendo
Nintendo provide
provide
** Supplier
Supplier concentration
concentration Other
Other technology
technologyindustries.
industries.
** Size
Size of
ofsupplier
supplier
M ** Uniqueness
Uniqueness of ofsupplier
supplier Dependancy
Dependancyon onoutside
outside manufacturer
manufacturer that
that
** Switching
Switchingcostcost produced
produced keykeycomponents.
components.
** Threat
Threat of
offorward
forward integration
integration
3.
3. Bragaining
Bragainingpower
power ofofcustomer
customer ** Price
Price sensitivity.
sensitivity. Small
Smallcost
cost of
ofchange
change
** Ability
Abilityto
to substitute.
substitute.
** Switching
Switchingcost Very
Verystrong
strongand
and legal
legalcore
core market
M ** Number
Number of
cost
ofcustomers
customers
market

** Customer
Customer concentration
concentration Less
Less likely
likelyto
to switch.
switch.
Loss
Loss of
ofpurchasing
purchasingpower
power ininrecession
recession
4.
4. Threat
Threat of
ofsubstitute
substitute ** Substitute
Substitute performance
performance Many
Manyforms
forms ofofvideo
video games
games
** cost
cost of
ofchange
change
M ** Buyer
Buyer propensitity
propensitityto to substitute
substitute Direct
Direct substitute
substitute of
ofconsole
console

5.
5. Rivarly
Rivarlyamong
amongcompetitors
competitors ** Industry
Industrygrowth
growth Technology
Technologyisis becoming
becomingmore
more advance
advance
** Switching
Switchingcost
cost
** Diversity
Diversityof
ofcompetitors
competitors High
Highintensive
intensive competition
competition
H ** Informational
Informationalcomplexity
** Brand
complexity
Brand identity
identity Buisness
Buisness growth
growthand
and profitability
profitability
** Product
Product differentiation
differentiation
 Table-4
Table-4 Stakeholder
Stakeholder
GLOBAL analysis
analysis
MARKETING DECISIONS DECEMBER 2021
Stakeholder
Stakeholder analysis
analysis Expectation Analysis
Expectation Analysis Power
Power Interest
Interest
Internal
Internal
Salary
Salary expectations,
expectations,job
job security,
security,Welfare
Welfare
Employees (1)
Employees (1) facilities, Training facilities
facilities, Training facilities 55 55
Connected
Connected
Customers (2)
Customers (2) Quality
Quality service,
service,affordable
affordable price,
price,customer
customer service
service 55 44
Suppliers
Suppliers (3)
(3) Payments on supplies,
Payments on supplies, 33 44
Shareholders (4)
Shareholders (4) Return
Return on
on their
their investment
investment 55 55
External
External
Regulators
Regulators & Governments(5)
& Governments (5) Telecommunication
Telecommunication rules,rules,Tax,
Tax,Labour
Labour Laws
Laws 55 22
Local communities (6)
Localcommunities (6) Environmental
Environmentalprotection,
protection,CSR
CSR activities
activities 11 44
Table-4.1 Table-5
Table-5 McKenzy's
McKenzy's 77 S's
S's Model
Table-4.1Six
SixMarket
MarketModel
Model Model
Staff
Staff 1.1. Employees
Employees hired
hiredinternally
internallyand
andexternally
externally
Type
Type ofofMarket
Market Stakeholders
Stakeholders Expectations
Expectations 2.2. inbound
inboundtraining
training
Internal
Internalmarket
market Shareholders
Shareholders Developing
Developing strategies
strategies 3.3. Career
Career development
development
Referral
Referralmarket
market Intermediaries
Intermediaries
4.4. performance
performance evaluation
evaluation
Delivery
DeliveryofofService
Service quality
quality
Agencies
Agencies Strategy
Strategy 1.1. Good
Good attainmentcommuincated
attainment commuincatedtotoall allthe
the
Workers and interest parties.
Workers and interest parties.
Supplier
Suppliermarket
market Suppliers
Suppliers Commercial
Commercialservices
services Strucutre
Strucutre 1.
1. Decentralized
Decentralizeddecision
decisionmaking
makingsystems.
systems.
2.2. Complex system for communication.
Complex system for communication.
3.3. Group
Grouporiented
orientedtask.
task.
4.4. Coordination
Coordination amongdepartments.
among departments.
High
Highquality
qualityproduct
productatatresaonable
resaonable price
price
Customer
Customermarkets
markets Buyers
Buyersand
andSellers
Sellers 1.1. Creative
Creative and supportive organizational
and supportive organizational
structure.
structure.
Talent
TalentAcquisitions
Acquisitions Shared
Sharedpurpose
purpose
2.2. Employee
Employee motivation
motivation
Employee
Employee markets
markets HR
HRPractitioners
Practitioners Recruitment
Recruitmentandandselection
selection 3.3. Organizational
Organizationalcommitment
commitment
Recruit
Recruitagencies
agencies Style
Style 1.1. Participative
Participative style
style practicing.
practicing.
Shareholders 2.2. Internal
Internalcollaboration
collaborationandandcooperation
cooperation
Shareholders
among
amongsuboardinates.
suboardinates.
Financial
FinancialAanlyst
Aanlyst Significant
Significantinfluence
influence over
overorganizations
organizations Skills 1.1. Admirable
Skills Admirable workforce
workforce withwithskills
skills and
and
Influence
Influence markets
markets Environmentalist
Environmentalist Capabilities.
Capabilities.
Systems
Systems 1.1. Ensure
Ensure well
wellboarded
boarded
2.2. system
systemforfor business
business
3.opearion
3.opearionand andcertified
certifiedconflicts
conflicts
free environment.
free environment.
Figure-01
Figure -01 Powe
Powerr &
& Intere
Interest
st Matrix
Matrix

L
L Inte
Interes
restt H
H

A
A H
H C
C
55 22
11
44
er

33
Powwer
Po

66
B
B L
L D
D
 GLOBAL MARKETING DECISIONS DECEMBER 2021

Table-6
Table-6 Cultural
Culturalweb
web
Symbols

Low
Hgh
Symbols Red
Redcolour
colour background
backgroundwith
withwhite
white letter

Low
Hgh
letter

Wiiuu
Wii
Power
Powerstructure
structure Governed
Governedby
bythe
the Nintendo
NintendoCo
CoLtd
Ltd

Organizational
Organizationalstructure
structure Multinational
Multinationalcompany
company

Wii
Wii
6547
6547 employees are
employees are working
working
Consumer
Consumer electronic and
electronic andvideo
videogame
game industry

Mark
industry

QuestionMark

Low
Low
Question
Control
Controlsystems
systems Timely
Timelysurvey
surveyand
andInnovations
Innovations

Dog
Dog
Share
MarketShare
Rituals
Rituals and
androutines
routines Effe
Effe tive
tive resource
resource utilizaion
utilizaion

Mariners
Seattle Mariners
Market

3DS
Nintendo3DS
Stories
Stories Established
Establishedinin1889,
1889,originated
originatedfrom
fromJapan
Japan

Nintendo
Founder
Founder Fusajiro
FusajiroYamuchi

analysis
Yamuchi

portfolio analysis

Seattle
Doug
DougBowser
Bowser isis president
president
forportfolio
Table-7
Table-7 Value
Value chain
chain Analysis

High
Analysis

High
Primary
Primary activities
activities

cow
Cashcow
Matrixfor

Inbound Logistics
Inbound Logistics Spplier
Spplier relationship
relationship

Cash
BCGMatrix

Star
Star

Material
MaterialHandlling
Handlling
Figure-02BCG

Marketgrowth
Market rate
growthrate
Inspection
Inspection
Warehousing
Figure-02

Warehousing
Inventory
InventoryControl
Control

Operations
Operations Assembly
Assembly Supportive
Supportive Activities
Activities
Packaging
Packaging Firm infrastructures
IT
Firm infrastructuresIT
Maintenance
Maintenance Administration
Administration
Outbound
Outbound logistics
logistics Warehousing
Warehousing Finance
Finance
Order
Order processing
processing HRM
HRM Recruiting
Recruitingrelevant
relevant staff
staff
Packaging
Packaging Inhouse training facilities
Inhouse training facilities
Delivery
Delivery Procurement
Procurement Purchasing
Purchasingraw
raw material
material
Marketing
Marketing Online
Online and
and retail
retailmarketing
marketing Find suppliers
Find suppliers
Technology
Technology Innovation
Innovationand
and automation
automation
Service
Service After
After sales
sales services
services Research and development
Research and development

Table
Table-9.1
-9.1 Compe
Competitor
titor Capability
Capability Analysis
Analysis
Critical
Critical Succe
Success
ss Factors
Factors Pione
Pioneeerr Sony
Sony Pannasonic
Pannasonic Microsoft,
Microsoft, USA
USA
Product/service range
Product/se rvice range X
X X
X XX

Global
Global rereach
ach X
X X
X X
X X
X
Sale
Saless X
X X
X X
X X
X
Genre
Genre's 's X
X
Numbe
Numberr of of store
storess X
X X
X X
X
Expe
Experierience
nce curve
curve X
X
 GLOBAL MARKETING DECISIONS DECEMBER 2021

Table-8
Table-8 Strategic
Strategic capabilities
capabilities
Unique resources
Unique resources Core
Core competences
competences
1.
1. Well
Wellreputed
reputed brand
brand name
name 1.1. Alliances
Alliancesand
and partmerships
partmershipswith
withreputed
reputed organizations
organizations

2.
2. Nintendo
Nintendo IRD
IRDandand SPD
SPDdivisions
divisions 2.2. Flexibility
Flexibilitytoto adopt
adopttoto environment
environment
3.
3. Inbound
Inbound training
trainingfor
forstaff
staff 3.Customer experience management
3.Customer experience management
4.
4. Employee
Employee commitment
commitment and and organization
organizationcommitment
commitment 4.4. Iinnovation
Iinnovationand and automation
automation
5.
5. Market
Marketpenetration
penetrationforfor existing
existingproducts
products 5.5. Strengthen
Strengthen hard core gamer
hard core gamerproposition
proposition
6.
6. Diversification
Diversificationfor
for potential
potentialproducts
products VRIO
VRIOanalysis
analysis
7.
7. Strategic
Strategic alliances
alliances && partnerships
partnerships Value-:
Value-:Diversified
Diversified portfolio
portfolio and
and technology
technologydevelopment
Sustained
development
Sustained
Competitive
Competitive advantage
advantage
1.
1. Product
Productdifferentiation
differentiation Rare-:
Rare-:AAfew
fewfirms
firmspossess
possessreality
realityvideos
videos Moderate
Moderate
2.
2. Cost
Cost Leadership
Leadership
Immatibility-:
Immatibility-:Substitute
Substitute products
products available
availablefor
forNintendo
Nintendo games
Sustained
games
Sustained

Organization-:
Organization-:Nintendo
Nintendo has
hasability
abilitytoto corporate
corporate with its
withSustained
its
Sustained
competitiors with current resources
competitiors with current resources

Table-9
Table-9 Competitor
CompetitorAnalysis
Analysis
Competitior
CompetitiorName
Name Profile
Profile Scope
Scope of
of the
the company
company Key
Key characteristic
characteristic
Pioneer
Pioneer President-:
President-:Koichi
KoichiMoriya
Moriya Manufacturing
Manufacturingandand distributes
distributes car
** Well
car Wellknown
knownbrand
brand name.
name.
Revenue-: $2.9 bn
Revenue-: $2.9 bn audio and other electrical equipments
** Significant market share and
audio and other electrical equipments Significant market share and

Employee-:
Employee-:12059
12059 higher
higher sales
sales revenue
revenue
Category-:
Category-:Electrical
Electricaland
and electronic
electronic good
good ** service
service provide
provide with
withlatest
latest
technology
technology
** Product
Product portfolio.
portfolio.
Sony
Sony Chairman-:
Chairman-:Kenichiro
Kenichiro Yoshida
Yoshida Manufacturer,
Manufacturer, Markerter
Markerter and
and seller
** 109700
seller of
of workforce
109700 workforce in insony
sony
Annual
Annualrevenue-:
revenue-:$88.3bn
$88.3bn electronic
electronic goods
goods ** Embrace
Embrace latest
latest technology
technology
Category-: Computer peripherals, networking
Category-: Computer peripherals, networking ** Worldwide spread marketing
Worldwide spread marketing
and electrical equipments
and electrical equipments network
network
** High
Highcalliber
calliber workforce
workforce
Pannasonic
Pannasonic President-:
President-:Yaki
YakiKusumi
Kusumi Japan
Japanbased
based manufacturing
manufacturingcompany
** Highly
company Highlyconsistant
consistant brand
brand name
name
Revenue-: $64bn
Revenue-: $64bn which produced television, home
which produced television, home * Highest market share.
* Highest market share.
Employees-: 243540
Employees-: 243540 appliances, cameras
appliances, cameras ** Adjusted
Adjusted with
withtechnological
technological
Category-: Electrical and electronic goods
Category-: Electrical and electronic goods update
update
** innovation
innovation

Microsoft,
Microsoft, USA
USA Revenue-:
Revenue-:$143Bn
$143Bn (+13.6%;
(+13.6%; YoY)
YoY) Software
Software &
& hardware
hardware Large
Large ecosystem
ecosystemof of products,
products,
Net income $44Bn (+13% YOY in 2020)
Net income $44Bn (+13% YOY in 2020) service,
service, positions XBOXconsoles
positions XBOX consoles
as
as a broader entertainment device,
a broader entertainment device,

Table-11
Table-11 Financial
Financial performance
performance Table-11.1
Table-11.1 Selected
Selectedfinancial
financial ratios-2020/2021
ratios-2020/2021
Selected 2020
2020 2021
2021
Selectedoperational
operational information
information2020-2021
2020-2021
Operating margin
Operating margin 26.90%
26.90% 36.40%
36.40%
2020
2020 2021
2021 Change
Change %
% EPS
EPS 2.171
2.171 4.033
4.033
Net
Net sales
sales 1,308,519.00
1,308,519.00 1,758,910.00
1,758,910.00 34%
34% DPS
DPS 1.09
1.09 2.22
2.22
EBITDA
EBITDA 361,927.00
361,927.00 651,432.00
651,432.00 80%
80% ROE 17.50% 28%
ROE 17.50% 28%
PAT
PAT 258,641.00
258,641.00 480,375.00
480,375.00 86%
86% ROA
ROA 19.90%
19.90% 31%
31%
 GLOBAL MARKETING DECISIONS DECEMBER 2021
Table-11.2
Table-11.2 Sales
Sales records
records and
andoperating
operating profit
profit 2017-2021
2017-2021
Sales
Sales Mar-17
Mar-17 Mar-18
Mar-18 Mar-19
Mar-19 Mar-20
Mar-20 Mar-21
Mar-21
Net
Netsales
sales 489,095
489,095 1,055,682
1,055,682 1,200,560
1,200,560 1,308,519
1,308,519 1,758,910
1,758,910
Operating
Operatingprofit
profit 29,362
29,362 177,557
177,557 249,701
249,701 352,370
352,370 640,634
640,634
Ordinary
Ordinaryprofit
profit 50,364
50,364 199,356
199,356 277,355
277,355 360,461
360,461 678,996
678,996
Profit
Profitattributable
attributable to
to 102,574
102,574 139,590
139,590 194,009
194,009 258,641
258,641 480,376
480,376
owners
owners of
ofparent
parent
Operating
Operatingprofit
profitratio
ratio 66 16.8
16.8 20.8
20.8 26.9
26.9 36.4
36.4
Profit
Profitattributable
attributable to
to 21
21 13.2
13.2 16.2
16.2 19.8
19.8 27.3
27.3
owners
owners of
ofparent
parentratio
ratio
Figure-03
Figure-03 Operating
Operating results
results comparison
comparison Figure-04
Figure-04 Sales
Salesvsvsprofit
profit2017-2021
2017-2021

Operating Sales
Sales Sales
Sales vs
vs profit
profit 2017-2021
2017-2021
Operatingresults
results2020-2021
2020-2021
2,000,000
2,000,000 Net
Netsales
sales
2020
2020 2021
2021 1,800,000
1,800,000 Operating
Operatingprofit
profit
1,600,000
1,600,000
2,000,000.00
2,000,000.00 Ordinary
Ordinaryprofit
profit
1,400,000
1,400,000
1,200,000
1,200,000 Profit
Profit attributable to
attributable to
1,800,000.00 1,000,000
1,000,000 owners
owners ofofparent
parent
1,800,000.00
800,000
800,000 Operating
Operatingprofit
profitratio
ratio
600,000 Profit
600,000 Profitattributable
attributable to
to
1,600,000.00
1,600,000.00 400,000 owners
400,000 owners of
ofparent
parentratio
ratio
200,000
200,000
00
Figure-04
Figure-04 Sales
Sales vs
vs profit
profit 2017-2021
2017-2021
1,400,000.00
1,400,000.00 Jan-17 Jan-18 Jan-19 Jan-20 Jan-21
Jan-17 Net Jan-18 Jan-19 Jan-20 Jan-21
Netsales
sales EBITDA
EBITDA PAT
PAT
Net
Netsales Operating
Operatingprofit Ordinary profit
profit Profit
Profitattributable
attributabletotoowners
ownersofofparent
1,200,000.00
Figure-05
Figure-05 salesOperating
Operating profit
profit
profit 2017-2021
Ordinary
2017-2021 parent
1,200,000.00

Operating
Operating profi
profitt %
% 2017-2021
2017-2021
1,000,000.00
1,000,000.00
40
40
30
30
800,000.00
800,000.00 20
20
10
10
600,000.00
600,000.00 00
11 22 33 44 55

400,000.00
400,000.00 Operating
Operatingprofit
profitratio
ratio Profit
Profitattributable
attributableto
toowners
ownersofofparent
parentrati
ra

200,000.00
200,000.00

--
Net
Netsales
sales EBITDA
EBITDA PAT
PAT

Table-12
Table-12 Value
Value proposition
proposition
Level
Level Description
Description
Core
Core Level
Level Entertainment
Entertainment experience
experience
Basic
Basic Level
Level Playing
Playingvideo
video games
games
Expected
Expected Level
Level Affordable
Affordable price
price with
withhigh
highquality
qualityvideo
video games
games
Augumented
Augumented Level
Level Mobile
Mobile phone
phone base
base video
video games
games
Potential
Potential Reality video for future market
Reality video for future market
 GLOBALFiguer-6
MARKETING
Figuer-6 PerceptualDECISIONS
Perceptual Mapping
Mapping DECEMBER 2021

High
Highquality
quality(Speed)
(Speed)

Nintendo
Nintendo switch
switchOLED
OLED
11

NES
NES New
Newclassic
classic edition
edition
22

Wii
Wiimini
mini 44 33
Wii
WiiUU
Low
Lowdemand
demand High
Highdemand
demand

Wii
Wiifamily
familyedition
edition
55

Low
Lowquality
quality(Speed)
(Speed)

Table-13
Table-13 Risk
Risk Management
Management
Risk
Risk Type
Type Drive factor
Drive factor Impact
Impact
Economic
Economic factor
factor Frequently
Frequentlyfluctuating
fluctuatingexchange
exchange rates
rates H
H
Global market financial crisis
Global market financial crisis H
H

Market
Market risk
risk Intensive
Intensive competition
competitionamong
amongcompetotors
competotors H
H
Price discrimination
Price discrimination H
H
Substitute
Substitute products
products in
inthe
the market
market M
M
COVID-19
COVID-19 impact on discriminatorypurchased
impact on discriminatory purchased H
H

Political
Politicaland
and legal
legalrisk
risk Trade
Trade regulations
regulations and
and tariff
tariffrelated
related to
to technology
technology M
M
Unstable political environment
Unstable political environment M
M
Comply
Complywith
withprivacy
privacyand
and secure
secure government
government regulations
regulations M
M
Table-14
Table-14 7P 7P ss Marketing
Marketing Mix Mix
Marketing
Marketing mix
mix tool
tool Strategy
Strategy
Toys
Toys and
and cards
cards
Home console
Home console
Arcade
Arcade
Handhelds
Handhelds
Product
Product Nntendo
Nntendo switch
switch
Home
Home consloe system
consloe system
Mobil
Mobildevice
device
Web
Web device
device
Premium
Premiumpricing
pricingstrategy
strategyfor
for new
new customers
customers
Price
Price Competitive
Competitive pricing strategy for existingcustomers
pricing strategy for existing customers
Physical
Physicaldistribution
distributionchannel
channel
Place
Place Online
Online distribution
distributionchannel
channel
Advertising
Advertisingtool
tool News
News papers
papers
Children
Childrenchannels
channels
promotion
promotion Offers
Offers incentives
incentivesMagazine
Magazine
Discounts
Discounts
Marketing
Marketingcampaign
campaign
Marketing professionals
Marketing professionals
People
People Employees
Employees
End
End user
user
Process
Process Supply
Supplychain
chainprocess
process
Physical
Physical evidences
evidences Physical stores
Physical stores
 GLOBAL MARKETING DECISIONS DECEMBER 2021
Table-15
Table-15 Strategic
Strategic Intent
Intent
Nintendo's
Nintendo's Vision
Vision Putting
Puttingsmiles
smiles ononthe
the faces
faces of
ofeveryone
everyone Nintendo
Nintendo Touches
Touches
Nintendo's Mission
Nintendo's Mission We
We believe it is essential not only to produce products of
believe it is essential not only to produce products ofthe
the highest
highestquality,
quality, but
butto
to
treat
treatevery
everycustomer
customerwith withattention,
attention, consideration
considerationand
and respect
respect
Nintendo's
Nintendo's Values
Values Flexibility,
Flexibility, Uniqueness,
Uniqueness, Sincerity,
Sincerity, Honesty
Honesty
Figure-07
Figure-07 Ansoff
AnsoffMatrix
Matrix
Product
Product
Market
Marketdevelopment
development Divesification
Divesification
Nintendo
Nintendo switch
switchOLED
OLED Model
Model
Wii
WiiMini
Miniedition
edition

New
New
Reality
Reality video
video
Market
Market

Penetration
Penetration Product
Productdevelopment
development

Exist
Exist
Wii
Wiifamilly
familly edition
edition Wii
WiiUU

Exist
Exist New
New

Table-17
Table-17 Innovation
InnovationAudit
Audit
Process
Process Description
Description
Innovation
InnovationStrategy
Strategy Nintendo
Nintendo establish
establishthe
the Red
Red ocean
oceanstartegies
startegies atatits
itsinception.
inception. This
Thisstartegy
startegyused
used for
formake
make
the
the competitionwithin the market, Face the competition, exploit existing deman, adoptwith
competitionwithin the market, Face the competition, exploit existing deman, adopt with
strategic
strategic chance
chance ofofdifferentiation
differentiationand
and low
lowcost.
cost.

The
The company
companydominated
dominated thethe market
marketand
and intensive
intensive competition
competitionfrom
fromSony
Sonyand
and Microsoft
Microsoftbox,
box,
Nintendo
Nintendo shifted
shifted to
to Blue
Blue ocean
oceanstartegy.
startegy. BOS
BOS focuses
focusesthat
thatcreate
createuncontested
uncontested market,
market,
acquire
acquire potential
potentialdemand,
demand, break
break cost
costtrade
trade off
offconcept,
concept, product
productdifferentiation
differentiationand
and low
lowcost
cost

Sources
Sources of
ofInnovation
Innovation Principal
Principalsource
source of
ofinnovation
innovationisisthe
the consumer
consumer
Distinct
Distinctsource
source of
ofinnovation
innovationisisthe
the competitor
competitor
Processess
Processess to
to scan
scan Scan
Scan the process of innivation idea throughthe
the process of innivation idea through the New
Newproduct
productdevelopment
developmentprocess
process
Innovation
Innovationideas
ideas whixh
whixhconsist
consistof
ofideageneration,
ideageneration, idea idea screening,
screening, product
productdevelopment
development
commercialization
commercializationand and launch
launchproduct
productto to the
the market.
market.