A fine example on how Nintendo applied the blue ocean strategy. By focusing on their strengths and focusing on their uniqueness in the console-making industry, the console war (Sony’s Playstation and Microsoft’s XBox) suddenly becomes irrelevant to them.
And one can’t help but notice how “the other 2 giants” are more concerned on price cuts to gain market acceptance rather than coming up with differentiation and strategies to position themselves differently.
Nintendo became Japan’s second-biggest company by market capitalisation behind Toyota on Tuesday, underlining how the success of the Wii games console has transformed the fortunes of the Kyoto-based company.
Shares in Nintendo closed up 3.1 per cent to Y59,200 bringing its market value to Y8,390bn ($73.2bn), surpassing Canon’s market cap of Y8,120bn. But the gap between Nintendo and Toyota remains substantial. Toyota’s market capitalisation is Y24,000bn.
“Compared with two to three years ago, Nintendo is a completely different animal,� said Hiroshi Kamide, analyst at KBC securities.
“It has kept beating market expectations with its results and new products like the Wii Balance Board will keep the console fresh as it heads into the holiday season.�
Many analysts feel Nintendo is still not overvalued, in spite of its high share price. The company is known to be conservative in its profit forecasts, and foreign exchange rates in the US and Europe are expected to give its bottom line a boost.
Source: FT.Com
I believe Nintendo has got a way of communicating with the gamers, as they continue to offer new unique ways of experiencing the interactive content. For PS 2 there’s the Eye Toy and super-addictive interactive guitar controller (for rockstar wannabe like me).
But I won’t be joining the ranks of Nintendo Wii owners yet, since my PS2 is still very much under-utilized. The last “Nintendo console” I ever owned was the pocket sized flippable Donkey Kong gamewatch. Maybe it’s time to rekindle the love for an old flame :-D
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