SWOT Analysis of Nintendo
Please complete the swot about Nintendo according to the file format.
SWOT investigates two questions: What weaknesses leave the company most vulnerable to
emerging threats? And, does the company have (or can they acquire) strengths that allow them to
pursue emerging opportunities?
a. Threats
i. Competition
ii. Technology change
iii. Exposure to rapid sales decline
b. Opportunities
i. Consumer market trends
ii. Electric/autonomous/flying vehicles
iii. Video on demand
c. Weaknesses
i. Increased dependence on iPhone (with resulting lack of new product introductions)
1. This could be viewed as a lack of internal innovation
2. don’t really have the organizational structure for bottom-up development;
don’t have executives/leadership for top-down development
ii. High cost of products (but this is consistent with high-end differentiation strategy)
iii. Loss of key talent (which could be assuaged if culture of innovation returned)
iv. Loss of Steve Jobs: despite the company’s deep executive bench, Apple has not
continued with its legacy of producing innovative devices without its iconic leader.
v. Declining position in China (but, that position is predicated on iPhone, on which
Apple is already over-reliant, which suggests that this weakness could be reversed
with the development of innovative new product)
vi. While Apple’s introduction of the iPhone, iTunes, and the App Store would be
considered a first-mover in the industry, Apple has most often been a fast-following
second mover during Tim Cook’s reign, largely with introducing derivatives of
existing products.
d. Strengths
i. Strong ecosystem
1. Apple has intimate Silicon Valley and VC access
ii. Strong financials and cash reserves
1. At end of Q3, 2019, Apple has $XXXB in cash
2. FY Ending 2018, Apple has $XXB in profit, with net margins of YY%
iii. Brand recognition founded on high-end image that integrates hardware design,
operating system software, and ecosystem services.
1. This integration capability is Apple’s core competency
SWOT of Nintendo
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SWOT of Nintendo
Nintendo is one of the market's leading hardware manufacturers and game creators. The company operates in a competitive environment and, therefore, face various weaknesses which could threaten its success. It also has various strengths and opportunities, making it possible to remain highly competitive. The following is the company's SWOT analysis.
Strengths
* Extensive Distribution
Being one of the leading game creators in the world, the company has attracted a huge market share with a large distribution network (Aurègan & Tellier, 2019). The distribution network ensures that the company's products reach consumers worldwide on time.
* Variety of Games
Nintendo offers a wide variety of games, thus giving the consumer a wide range of options. The diverse product line keeps the consumers interested in the company's products, thus offering it a competitive advantage.
* Competitive Pricing
Nintendo offers competitive prices, which keeps consumers coming back for more products. When compared to its competitors, the company's prices are relatively lower.
* Years of experience
Nintendo has been in the market for game creation for many decades, which has highly contributed to having a reliable market share. It gives it an advantage over new market entrants.
Weaknesses
* Counterfeit Products
Nintendo's main weakness is the vast growth of counterfeit and cheaper products. Many consumers do not know the difference between original and counterfeit goods. Hence, they buy cheaper counterfeit goods, thus reducing Nintendo's market share.
* Reliance on Developed Countries
Nintendo's marketing department focuses on developed countries while ignoring the gaming needs of people in developing countries. This presents a risk because the developed countries' markets will become saturated in the future, thus reducing their market share.
* Product Failures
Nintendo has faced product failures in the ...
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