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Nintendo Case Solution

Solution Id Length Case Author Case Publisher
1495 1078 Words (8 Pages) W Chan Kim, Renee Mauborgne, David Champion, Anders Kjellberg INSEAD : 398-030-1
This solution includes: A Word File A Word File

Strategic management of a company is related to consistent planning, assessment and analysis of factors that are important for a company to achieve its mission, and objectives (Harrison & John, 2009). This brief report will analyze the company Nintendo based on its strategic direction and the factors that impact the strategic decision-making in a company. 

Following questions are answered in this case study solution:

  1. Introduction

  2. Company’s Mission and Objectives

  3. Company’s Values

  4. Product Assessment

  5. Strategic Issues

  6. SWOT Analysis

  7. Recommendations

Case Study Questions Answers

2. Company’s Mission and Objectives

Nintendo’s mission is very broad in scope just as good mission statements should be. This is because it needs to have space for elements of creativity. It should also have a reconciliation of the stakeholders of the company. However, it should also be specific to a certain extent because an extremely wide mission statement would not be very effective (Ogbor, 2009). Nintendo’s mission statement is very wide in scope. It addresses the customers as well as the employees as its basic stakeholders. However, it does not state the specific industry or area in which the company deals. 

3. Company’s Values

Nintendo has a code of conduct that applies to its employees, directors, as well as officers. These values impact the decisions that the organization takes to achieve its objectives. These values address the interest conflict among the intended audience, insider trading, practices that are not compliant with the foreign law, fraud and bribery, honesty, and integrity (Nintendo, 2015). The purpose of the development of company values is to conduct business that does not impact the society negatively. However, one element that can be added to these values is environmental sustainability that is a part of the CSR objectives at the company. This is because, in 2013, the company was assessed to have integrated them into product development. The decreased carbon emissions, and the reduction of dependence on rare minerals for product development have been steps that have made the company socially responsible (Horton-Hall, 2013). The inculcation of this in the company values would further improve the implementation in the workplace. 

4. Product Assessment

Nintendo has a recent Wii u category that is differentiated on the basis of wireless controllers. It is an upgradation of the Wii product line. Furthermore, the company had the 2Ds and 3Ds categories. This category is the handheld gaming devices. These are products of the same Ds category. The company also offers retro products that are parts that the gaming consoles require in case they need to be replaced. Alongside, the company also offers refurbished products at cheaper price. All of the product lines of the Ds and the Wii also have games specified to these gaming consoles. The assessment of these product categories shows that the company holds the market for Nintendo products with spare parts and refurbished gaming consoles also available. This shows that the company is vertically integrated and has not diversified into categories that are unrelated to the core product offering. 

5. Strategic Issues

One of the major problems with the strategy adopted at Nintendo is its nostalgic approach to the development of games. This shows in the recent news about the company releasing a mobile video game that is based on Pokémon. The company has innovated to develop moving physically to different parts of the city to gain points. Even though this seems like a good option to bring about a revolution in gaming, the old characters are not evolutionary for the company (Wagner, 2015). 

Furthermore, another strategic issue with the company is that it is integrating the games produced by the company in smartphones. However, the assessment of this move shows that even though smartphones are increasing in business, the integration of the same would not allow the company to differentiate based on innovative gaming features. This is because developing games would be a replicable competitive advantage (Jones , 2015). 

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