Major Strategic Issues Facing Nintendo Paper

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I am doing the project on Nintendo video game company

Question a. Key strategic issues: Based on your team's assessment of the internal and external environments, as well as the company’s current strategic position, clearly identify and state the 2-3 major strategic issue facing the company (the best issues are typically either major problems to be solved, or major opportunities to exploit)

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Running Head: MAJOR STRATEGIC ISSUES FACING NINTENDO

Nintendo Project
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MAJOR STRATEGIC ISSUES FACING NINTENDO

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Major Strategic Issues Facing Nintendo
Nintendo is facing severe crises under a strategic standpoint. For starters, Sony and
Microsoft avail the services of third-party developers who create games for their consoles. These
third-party developers pay a fee to Sony and Microsoft which is where the two companies derive
a majority of their revenue. This is not the case with Nintendo. Nintendo does not avail thirdparty support because Nintendo develops its own video games and sells them on the consoles
that it produces. This strategy is risky for Nintendo. If the company produces a game that fails to
permeate the video game market and is deemed unsuccessful, the company will be left to incur
the costs of developing, producing, and marketing that unsuccessful game.
It is evident that Nintendo’s strategy of developing and selling its own games will not
allow the company to beat Microsoft and Sony. A potentially successful strategy that the
company can benefit from is vertical integration. Vertical integration presents an opportunity to
l...


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