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Written Group Strategic Case Study

Strategic Implementation

In this report, Strategic Alliance is the best cooperative strategy in which Nintendo combines its resources and capabilities to create a competitive advantage. The best types of strategic alliances the company uses include:

Joint Venture:

Nintendo has entered into several joint ventures throughout its history, including partnerships with major players in the gaming industry, such as Sony and Microsoft. These joint ventures have enabled Nintendo to leverage the strengths and expertise of its partners to create innovative products and enter new markets (Nan, 2021). Also, Nintendo has a strong brand and reputation in the gaming industry, which gives it an upper hand in using this joint venture strategy. This enables it to attract potential partners whom it collaborates with. Moreover, Nintendo has unique expertise and resources in developing innovative and creative games valuable to their diverse partners that expand their portfolio, enabling the company to enter new markets. For example, Nintendo’s partnership with Sony created the highly successful PlayStation gaming console (CHEN, 2023). While the partnership ultimately dissolved, the joint venture allowed both companies to combine their gaming hardware and software strengths to create a product that dominated the market for years.

Equity Strategic Alliance

Another type of strategic alliance that Nintendo uses is a strategic equity alliance. A relationship between several companies in which each owns shares in the other is referred to as a strategic equity alliance. While each partner has a financial interest in the success of the other, this sort of alliance frequently entails greater integration and cooperation than different types of partnerships. Throughout its history, the company has formed several equity strategic relationships. The collaboration between Nintendo and the UK-based video game developer Rare is one such instance. Nintendo bought a 25% share in Rare in 1994, and the two firms worked closely together to create several popular video games, including the Donkey Kong Country series (Butcher, 2020). Also, its partnership with The Pokemon Company depicts its application of the equity strategic alliance strategy (Hsiao, 2021). Nintendo and The Pokemon Company formed a joint venture in which each company held an equal stake. The partnership has allowed Nintendo to leverage the popularity of the Pokemon franchise and expand its reach into new markets, such as mobile gaming.

Non-equity Strategic Alliance

Cooperation between two or more companies in which the partners do not own equity in one another is known as a non-equity strategic alliance. Instead, they work together in particular business sectors like marketing, distribution, and research & development. With other businesses, Nintendo has a history of creating non-equity strategic relationships (Franklin, 2021). The early 2000s relationship between Nintendo and IBM serves as one such. The two companies collaborated on developing microprocessors for Nintendo’s gaming consoles, with IBM providing chip design and manufacturing expertise. Non-equity strategic alliances allow Nintendo to access resources and capabilities it may not possess in-house, such as specialized technology, expertise in a particular market, or distribution channels. Without making a big financial commitment, these collaborations also enable Nintendo to broaden its reach and penetrate new areas (Firdaus, 2021). Non-equity strategic alliances can be less formal than strategic equity alliances, making it harder for partners to coordinate their efforts. These partnerships need to be carefully managed by Nintendo to ensure that they align with its overarching strategic vision and goals and that each partner is dedicated to their success.

Strategic Implementation Issues

Some strategic implementation issues that Nintendo goes through include Resource allocation. Nintendo must allocate its resources effectively to implement its strategic plan successfully. The company must prioritize its financial, human, and technological resources to achieve its strategic goals. Secondly, Resistance to change in which employees, partners, or stakeholders can resist any strategic change. Nintendo must ensure that its employees and partners are on board with the new strategy and that they understand the benefits it brings to the company (Chylinski, 2020). Thirdly, Technology integration is essential to the gaming industry. To remain competitive in the market, Nintendo must integrate new technologies, such as virtual and augmented reality, into its products and services. Also, competitive pressure is due to the highly competitive gaming industry, with many players competing for market share. Nintendo needs to stay updated with the latest trends and innovations in the industry to maintain its position (Sah, 2021). Lastly, Consumer preferences, in which some consumer preferences and trends change rapidly in the gaming industry. Nintendo must know these changes and adapt its strategies to meet consumer needs and preferences.

Conclusion

It can be concluded that the gaming industry is highly competitive and constantly evolving, requiring companies to innovate and improve to stay relevant. Nintendo, a famous game company, faces challenges in this dynamic industry. This report has analyzed Nintendo’s strategic position and future through various theories and models. Nintendo’s external and internal environment and major SWOTs were discussed in the strategic analysis. Secondly, the strategies adopted by Nintendo to pursue its strategic objectives were discussed in strategic formulation, including diversification, differentiation, and strategic alliances. Next, strategy implementation and the significant issues that affect implementation were discussed in strategic implementation. Finally, Nintendo’s overall performance was discussed in the strategic evaluation. This paper has met the thesis statement by analyzing Nintendo’s current strategic position and future through various theories and models. Also, the implementation of strategies and the significant issues that affect the implementation have been handled in strategic implementation with their evaluation in strategic evaluation.

References

Butcher, L., Tucker, O., & Young, J. (2020). Path to discontinuance of pervasive mobile games: the case of Pokémon Go in Australia. Asia Pacific Journal of Marketing and Logistics, 33(2), 584-606.

CHEN, C. C., & LİN, C. J. How Smartness of Leisure-Sports Appliances Influence Tourists’ Intention to Use. Advances in Hospitality and Tourism Research (AHTR).

Chylinski, M., Heller, J., Hilken, T., Keeling, D. I., Mahr, D., & de Ruyter, K. (2020). Augmented reality marketing: A technology-enabled approach to situated customer experience. Australasian Marketing Journal, 28(4), 374-384.

Firdaus, A. S., & Rahadi, R. A. (2021). Conceptual Model for Factors that Influence Purchase Intention of In-game Purchase in Freemium Mobile Game. International Journal of Accounting, 6(32), 74-87.

Franklin, S. B. (2021). The Impact of Casual Videogames on Competency, Autonomy, and Mood State (Doctoral dissertation, Purdue University Graduate School).

Hsiao, C. H., & Tang, K. Y. (2021). Who captures whom–Pokémon or tourists? A perspective of the Stimulus-Organism-Response model. International Journal of Information Management, 61, 102312.

Nan, D., Lee, H., Kim, Y., & Kim, J. H. (2022). My video game console is so cool! A coolness theory-based model for intention to use video game consoles. Technological Forecasting and Social Change, 176, 121451.

Sah, Y. J., Rheu, M., & Ratan, R. (2021). Avatar-User Bond as Meta-Cognitive Experience: Explicating Identification and Embodiment as Cognitive Fluency. Frontiers in Psychology, 12, 695358.

 

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