Answer To: HOLMES INSTITUTE FACULTY OF HIGHER EDUCATION HI6006 COMPETITIVE STRATEGY ASSIGNMENT 2 Assessment...
Abhinaba answered on Sep 13 2021
COMPETITIVE DYNAMICS: A CASE STUDY OF NINTENDO
Executive Summary
The assignment deals with the competitive dynamics in the gaming industry with a close reference to the selected case study on Nintendo, the japan based software and electronics firm. Firstly, a brief overview is presented on the chosen organisation, followed by the identification of the strategic issues confronted during its functioning in the highly competitive industry. The report has also emphasised on the relevant theoretical concepts of competitive dynamics and appropriate application of the strategy model.
Table of Contents
Introduction 4
2. Findings 4
2.1 Brief summary of case study 4
2.2 Identification of strategic issues 5
2.3 Relevant theoretical concepts 7
2.4 Application of strategy model 9
3. Conclusion 10
References 11
Introduction
The gaming industry is set on a high note of competition with new market players posing substantial threat to the old ones. However, the electronic or software based firms, which have already gained a strong footing over the years in serving the youngsters and the adults, equally strive to become equipped as per the demands of the new gen gamers(Derevensky and Richard, 2019). In the current generation, gamers are not restricted to a particular section of society or particular age group. The gaming activity is a much loved indoor fun time that is enjoyed by the girls, boys, young and professionals. This need for a small duration of respite from the mundane daily activities is recognized by the gaming companies that fostered the massive proliferation of a wide range of gaming businesses. In this context, it can be stated that Nintendo, Microsoft and Sony are the three global competitors in the gaming industry.
2. Findings
2.1 Brief summary of case study
Before delving into the overview of the case study on Nintendo, it is important to shed light on the term competitive dynamics in the gaming industry. Notably, competitive dynamics comprises the responses and actions among the leading rival players in the market for gaining a competitive edge over the other (Gao et al., 2017). It is interesting to note that competitive dynamics vary in accordance to fast, slow and standard market cycle. Going by the given case study, the gaming industry is characterized by the fast cycle, where the pool of profit is highly impressive and growing. However, the gaming industry confronts a severe threat from the gaining acceptance and popularity of the mobile gaming. Nevertheless, the industry is celebrated for its dynamic nature that offers wide range of opportunities for new ideas and designing.
Notably, the market speed plays impact on the responses and actions undertaken by the market players. As the gaming industry is known for its fast cycle, therefore, the competitive advantages secured by the top rivals such as Nintendo, Microsoft, Sony and others fail to remain sustained for long (Chen and Miller, 2015). It is, indeed, a fact that though Nintendo kicked off on a high note, but as the leading gaming players are managing to gain a greater market share. Furthermore, the mobile gaming aspect is supplementing to the already competitive market zone. As per the case study, Nintendo is incurring a conspicuous loss in the market share on a global scale. The underlying factor leading to this unstable condition in the market is the advantageous position enjoyed by all the market players in terms of their availability of resources.
In such an environment of high competitive pressure, it is important for Nintendo to eye on innovation and opens all the doors to embrace competitive advantages through unique ideas. Most likely, these new, innovative ideas in gaming are much impactful and superior to the other competitors in the market as it significantly helps to attract the gamers, at large. It has been pointed out that the fast market cycle in the gaming industry has injected such intensive mood of competition that the players continually make attempts to secure another competitive edge prior to the respond generated by other rivals for the previous action (Gianiodis et al., 2019). However, amid the high competitive pressure, the games are offered wide spectrum of gaming options to select as per their demands. Furthermore, the version, the quality, the innovative touch in the games provided by the market players are all scaled up and improved. At a time of quick innovation and progress, despite the presence of multiple gaming style alternatives such as books, sports, board games and others, however, none can offer such appealing factor in terms of gaming demographic to the customers. Nevertheless, the technology an gaming suppliers do not pose severe threat as the gaming industry is coherently organised and supports a pool of talented and innovative creators of games. It is observed quite evidently that the competitive pressure in the industry has escalated due to the increasing challenges posed by the internet and online based gaming. Nintendo must immediately work towards developing its new strategies to oust the market rivals (Markman et al., 2016). It must necessarily harness the available resources towards enhancing the capability of the organisation as well as the primary resources must be directed towards making a significant presence in the online gaming market scenario.
2.2 Identification of strategic issues
The strategic issues refer to the problems and challenges encountered by the organisation that tend to impact the organisational market value, resources, stakeholders, level of service or products offered to the customers in the market. In a highly competitive gaming market scenario, where each rival seeks to give a tough...