On 23 September 1889, Fusajiro Yamauchi founded a play card company named as “Nintendo”. The company headquarter is based in Kyoto, while the firm was famous for introducing Hanafuda cards. After some time, the handmade card business becomes famous and Yamauchi acquired more servants to manufacture cards to a wide extent.
Market Penetration
Market penetration strategy covers the development of already presented products into the same existent industry. Firms usually implement this strategy, when they plan to increase their profitability through high market share. However, the risk involved in this strategy is very low. Nintendo has struggled to maintain its market share in the form of strong competition that emerged by Sony and Microsoft through selling game consoles at a very low price. Both competitors are providing cheapest gaming consoles at a very low cost without any settlement of product specifications. With the intensive growth of competition in the gaming market, Nintendo has decided to make a partnership with Apple, to offer its games through mobile phones. This step is beneficial for both gaming and smartphone companies because, youngsters are the major users of apple phones, and the installation of games would enable them to play games through a smartphone. Nintendo is providing software for Mario and Zelda in Apple iPhone. This plan would help the company to reach out to current and new customers to a wide extent. In this manner, the market share of the company will also increase. Furthermore, Nintendo has phased out its two-game consoles including, Game Cube and Game Boy, because of obsolescence in the time of technological advancements and strong market competition.
Product Development
This growth plan is executed by the firms which intend to produce more variety of its product to retain existing customers. Product development strategy may involve modification in the previous production model. Nintendo is constantly focusing on its product development strategy by innovating and introducing the latest gaming consoles in the gaming industry. For example, Nintendo has developed Wii by introducing motion plus technology that enhanced the revenues and income of the firm. The gaming company has introduced 10Mario games for Wii and provides digital services Nintendo has already released 10 Mario titles for the Wii, and offer an online service which allows users to install old Mario games to their Wii system.The development of Wii has supported gaming companies in the recovery of lost market share and improved its position like its competitors like Sony (PlayStation) and Microsoft (X-Box) has improved. Moreover, it has been realized that, due to the intensive growth of strong competition in the gaming industry, Nintendo must constantly focus on the product development strategy to attract new and old customers.
Market Development
Another name of a market development plan is growth expansion. This strategy is based on the concept of distributing old products into the latest markets. To penetrate new markets, Nintendo has started selling a few of its existing gaming products to attract old female customers because they are not usually considered as regular gamers. For example, Wii sports becomes a famous product among old age game users.
Diversification
Manufacturing unique products into a very new market. There is the highest risk involved in diversification because the firm does not have any idea about the new market situation. Nintendo is producing gaming software like Pokémon by collaborating with competitive gaming organizations like Creatures Inc. and Next Level games, to create new products for its clients. Nintendo users are now able to play Pokémon games via Wii/Wii U console. The latest hand-held products including Nintendo 3DS, 2DS, and Nintendo XL are been introduced by the gaming company. The main objective behind the development of Nintendo XL is to provide gaming facilities to those people who cannot play video games at their homes, due to lack of time. Nintendo XL allows them to play during their daily travel routines. Nintendo is manufacturing its local games such as the new Zelda or Breath of life. Currently, Nintendo is distributing its gaming products through its online Nintendo eShop and directly selling its game consoles to customers. Additionally, Nintendo has started producing merchandise products with famous characters involved in it like, shoes, T-shirts, and caps with a design of Super Mario or Zelda. The primary objective of using this plan is to cater to new consumers in a new geographical location at the international level.