*I ONLY Need An Introduction and a Partial Conclution!!!**
The “Sources of Competitive Advantage” image above shows the focus of competitive advantage for seven companies:
- Toyota focuses on quality as its competitive advantage.
- IBM focuses on service as its competitive advantage.
- Wal-Mart focuses on low cost as its competitive advantage.
- Coca-Cola focuses on its proprietary products as its competitive advantage.
- Apple focuses on innovation as its competitive advantage.
- Nike focuses on brand recognition as its competitive advantage.
- Nintendo focuses on value as its competitive advantage.
- Slide 1: Include title of the team PowerPoint, course name and number, instructor’s name, date submitted, and names of team members.
- Slide 2: As a team, select a company from the list of organizations listed above that integrates information systems to support its business strategies. Describe the business mission and goals of your chosen organization.
- Slide(s) 3-4: As a team, describe how information systems create competitive advantages for your chosen organization. Analyze and identify the types and functions of systems used in the organization.
- Slide 5: What different types of data make up “big data” for your chosen company? Describe the big data (what it is and how it is used). Big is a term that describes extremely large data sets that may be analyzed computationally to reveal patterns, trends, and associations. Examples of big data may include data in a company’s customer service department used to solve customer problems or a company’s use of stock market or competitive intelligence data to predict the future (Hint: You can find examples of big data used by the organization by reviewing data reports on the “Investors” or “Our Investors” tab of the organization’s website). Justify your answers.
- Slide 6: Conclusion
- Slide 7: Reference list
April 24, 2017
Nintendo’s Source of Competitive Advantage
Less Expensive Consoles
Games are easier, quicker and cheaper to develop
Didn’t go HD
Addressing non-consumers with simpler solutions
Continue to think about what comes next
Nintendo makes their consoles cheaper to manufacture which equates to being able to sell the base console a to profit and their competitors have to subsidize the retail price
Nintendo decided not to go HD on the Wii to reach more customers who had not transformed to the HD world yet
Simplicity can be a powerful means of disruption when targeting non-consumers. The ability for anyone to pick up a game and play versus the complexity of PS and XBOX has proven to be a major advantage.
It’s crucial to keep thinking about what the source of sustainable competitive advantage is that will allow the disruptor to fend off the inevitable competitive counterattack.
User Friendly Computer Interface
Competitive advantage in an underperforming industry
Nintendo allows young children to play video games interchangeably without any technical skill whatsoever.
This makes them stand out because this protects the product from competition.
So value creation, those three: the supplier, buyers, and substitutes. That’s the places, those are the ideas, factors that inhibit or allow for the creation of value.
Hardware Unit Sales
Software Unit Sales
Digital Download Sales
(sold through online store)
Big Data for Nintendo
-Nintendo uses big data by analyzing hardware and software sales trends to understand customer buying habits
_ Hardware Unit Sales includes the WiiU, New 3DS, 2DS, Amiibo and Nintendo Switch.
With the announcement of their new system the Nintendo Switch Nintendo used big data to evaluate the reactions of the consumer base by analyzing the number of views which were over 20 million views and 95% positive reactions to their new system.
– Using Data Nintendo seeing that Pokemon Go brought and increased interest to the brand, saw this as an opportunity to resell back cataloged games and promote the release of a new pokemon game
-Using Data Nintendo saw an increase in digital download sales over packaged games year to year, but took in consideration that WiiU games sales were down across the board, which explained why they saw a decrease in sales.
Nobody said that being a disruptor would be easy. Nintendo shows how a disruptive strategy can pay off handsomely, but also illustrates that in highly competitive markets, competitive advantage is transient.
Everiss, Bruce (2008) Nintendo’s Competitive Advantage. Retrieved from https://seekingalpha.com/article/59142-nintendos-competitive-advantage
Huse, Tim (2010) What Can We Learn from Nintendo? Retreived from https://hbr.org/2010/08/what-can-we-learn-from-ninten
Nerdster, P., (2017) Nintendo Business Strategy Analysis for 2017 and Beyond. Retrieved from http://professornerdster.com/nintendo-business-strategy-analysis-2017-beyond/