Introduction
Establishing appropriate organizational strategic management is vital. Strategic management helps in attaining viable competitive advantages for any organization. With reference to the Nintendo Wii-International’s case study, this paper aims at identifying how the company grew to success. Nintendo was established in 1889 with the intent of manufacturing playing cards.
In 1979, it developed a first game system. Subsequently, the company developed the first LCD video game of its kind. It was unique as it had a microprocessor. Five years after, The Nintendo Entertainment System that had 8 bits
was developed. The video console performed well in terms of sales as it was one of its kind and none of those in the market by then could measure up to its features.Further, through a critical analysis, the paper will also seek to determine the strategies and reccoimendations that company should adopt so as to remain relevant in the market (Drezner, 2007).
Analytically, success of the Nintendo Company can be attributed to having a clear vision. The founder of this group intended to reach a wide range of people in an effective manner employing the use of appealing, in addition to, high quality products while observing the most viable ways to generate profits.
The Problem
There are several challenges faced by the company according to the case study. Foremost, the company had to cope up with the growing demands for their products. Additionally, competition has be a considerable problem for Nintendo. Currently, the company is only limited to some regions of the world. It ought to access other international markets, as well (Michael, Hitt, Ireland & Hoskisson, 2012).
The second challenge faced by the company includes making a decision as to succeed items that are of higher margin. The company has to establish the manner in which it will ensure expanded programming such that it will include reality television shows, which are based on themes, as well as, the designer fashions.
In the same context, the company gas to decide how to be successful considering the actively searched out products, which are proprietary in nature, either from the suppliers or even from the entrepreneurs, who have gained a new entry into the United States Market.
The third challenge that the case study depicts are the continued competition and expansion through the internet, applications of mobile devices, video streaming, in addition to, interactive television shows (Haberberg &Rieple, 2008). Further challenge concerns the growth of the company.
According to the case study, it is evident that Nintendo has continued difficulties in establishing growth trends. However, according to the case, there are moves that the company engaged itself in and as such, it is a clear indication that the company is aware of these challenges and, therefore, it is in the process of establishing the most effective measures in order to confront them.
Analysis
The success of the Nintendo Company and its products can be attributed to having a clear vision. The founder of this group intended to reach a wide range of people in an effective manner employing the use of appealing, in addition to, high quality products while observing the most viable ways to generate profits.
Indeed, the title of the company in itself is an aspect of strategic management. As such, the founder established an initiative, which was not only massively inspiring but also overarching. Further, the vision was a long-term one, and as such, it focused the future. The founder was also passionate in his journey towards accomplishing this vision. On route to success, the founder established the guiding values, goals, in addition to aspirations (Drezner, 2007).
Another success factor is the company’s mission. According to the case analysis, the founder wanted to establish a company that would be cost effective in its operation while still ensuring that it responds to its customers. However, vision and mission cannot be used singly to obtain success. This implies that they have to be linked up using objectives. The founder of this company did establish remarkably clear objectives.
Some of these objectives include expansion of the client reach with the help of technology. Another objective is ensuring that both the existing client service and the standards of product quality have been maintained regardless of the channel of distribution utilized. This indicates that the founder indeed recognized the trade-offs between the two in an extraordinarily efficient manner. He also intended to focus unique, quality, in addition to, high margin products.
Further, he intended to involve a number of stakeholders in decision-making. As such, he involved both the small as well as the large vendors in the search towards efficiently finding the products that would be more entertaining. This implies that he acknowledged the aspect of strategic management through the action of hiring a number of seasoned television executives.
For the objectives of the company to be attained effectively, several actions have to be considered. Foremost, the company must ensure that it keeps the current offerings with the advent of technology. Another thing that the company ought to ensure is that it not only scans but also monitors the external environment.
Through this, the company will be able to identify trends in the consumer market, trends in vendor product advancements, as well as, each move initiated by a competing business. Further, the company should ensure that it provides a working environment, which is exciting in nature. The company should ensure that the working environment guarantees that the employees will be committed to the notion of delivering quality at the first instance.
In general, the successful spell of Nintendo Company can be materially attributed to the strategic management approach adopted by the founding father. Through strategic management, an organization is usually in the right direction and in a good position to achieve a greater market share and, therefore, competitive advantage over the other firms.
According to the case study, the company incorporated the use of several strategies in ensuring that it endures a successful performance. In strategic management, there are several strategies adopted. However, many organizations focus on three principal ones, which include, analysis, formulation, in addition to implementation.
Strategic analysis concerns the strategic goal, which is the vision, the mission, as well as, the strategic objectives. On its part, strategic formulation involves making decisions of which industry it should engage in as well as making decisions on how the organization should compete in the identified industry.
The third strategic concept is implementation. This strategic management approach concerns the allocation of the essential as well as the necessary resources in order to operate. Further, this approach involves designation of the organization. Here, the management is required to deliver the operations by bringing the intended strategy into operational reality.
Alternatives – 3 possible ways to solve the problem
There are various ways through which Nintendo can solve its problems. Firstly, the company should expand its production capacity so as to serve more cutomers and bar them from resorting to the products of other competitors. The company will be able to anticipate, not only competition, but also other forces existing in the external environment of the company.
The activities depicted from the case study to support that this strategy was adopted include such actions as acquisitions, vertical integration, development of a vendor network, in addition to, understanding the company’s customers.
The second possible way to solve the problem encompass strategic formulation. This will diminish the problems of competition by increasing other aspects of competitive advantages. It is also evident in the case study that the company also adopted the strategic formulation strategy (Carrol, 2009). According to strategic management analysts, this strategy concerns making a choice in the manner in which a company will compete.
The reasons why this paper notes that the company adopted the strategic formulation is because of the offering of a shopping experience, which is attributed to as posing a low level of risk, while providing products of high quality to the customers. Moreover, the company did this in a way that no other shopping venue did and as such, Nintendo ’s operations were differentiated.
Ways in which the company differentiated itself from the competitors include the creation of a shopping mall that would run twenty-four hours a day for a period of seven days. It also ensured that it was running programs that were based on themes with celebrities. Apart from these, the company ensured that it ran shipment for forty-eight hours.
Moreover, Nintendo provided a one-month money back guarantee. Another action that signified differentiated service included institution of a quality control system, which was rigorous in nature, in addition to, linking up with national brands and thus forming a partnership aimed at attracting customers.
The third solution is the implementation of strategic measures in management within Nintendo Wii-International. According to the findings of the research conducted by Haberberg & Rieple (2008), it is indicated that strategic implementation concerns marshalling the company resources in a manner in which coordination, as well as, the integration of activities will be done easily and effectively in an effort towards the achievement of the chosen strategy.
Recommendation
All of the above alternatives are viable and can lead to the establishment of the most ideal solution to the existing problems on competitiveness, product viability, and production expansion. To support this assertion, the company will be able to anticipate, not only competition but also other forces, as well, existing in the external environment of the company.
The alternative of expanding the company’s production capacity is more weighty. Expansion can occur through mergers and acquisition of other international organization so as to reach the global market easily.
About acquisitions, the company should acquire other business so as to enhance its market penetration. Finally, the company should ensure that it focuses on understanding its customers, as well as, their needs and services (Carrol, 2009). This is evident in the case of Nintendo through various activities. The three crucial ways in which the company did this is by innovating while making use of creative merchandising (Dess, Lumpkin & Eisner, 2012).
Conclusion
Nintendo Wii is a successful product despite the looming competition it receives from other products. Nonetheless, the problems that the company encountered previously have hampered its exemplary performance. Competition, huge demands, and limited production capacity have served as the major problems faced by the company as evident from the case.
Analystically, a company that integrates an aspect of strategic management to its operations is in a better position to achieve competitive advantages and increased market divides. The analysis has also established that for the objectives a company to be attained effectively a company has to ensure that it keeps the current offerings with the advent of technology (Dess, Lumpkin & Eisner, 2012). Another thing that the company ought to ensure is that it not only scans but also monitors the external environment.
Through this, the company will be able to identify trends in the consumer market, trends in vendor product advancements, as well as, each move initiated by a competing business (Michael, Hitt, Ireland & Hoskisson, 2012). Viable alternatives can be used to establish the most ideal solution to the existing problems on competitiveness, product viability, and production development.
References
Carrol, W. (2009). Strategic communities for knowledge creation: a Western proposal for the Japanese concept of BA. Journal of Knowledge Management, 7 (5). 23-45.
Dess, G., Lumpkin, G. & Eisner, A. (2012). Strategic management: Creating competitive advantages (6th Ed.). New York, NY: McGraw-Hill/Irwin.
Drezner, D. (2007). Avoiding Trivia: The Role of Strategic Planning in American Foreign Policy. Journal of Knowledge Management, 16 (4). 2003, 3-15.
Haberberg, A. & Rieple, A. (2008). Strategic Management: Theory and Applications. Oxford: Oxford University Press.
Michael, A., Hitt, R., Ireland, D., & Hoskisson, R. (2012). Strategic Management Cases: Competitiveness and Globalization. Belmont, CA: Cengage Learning