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Microsoft and Sony Essay

1 What are the defining business and economic characteristics of the video game console industry? What is the industry like? What forces are driving changes in the video game console industry? 2 What is competition like in the video game console industry? Do a five-forces analysis to support your answer. Which of the five competitive forces is strongest? Which is the weakest? Would you characterise the overall strength of the competition in video game consoles as fierce, strong, moderate to normal or weak? Why? 3 What 3-5 key factors determine the success of video game console developers like Nintendo?

4 What is Nintendo’s strategy? Which of the five generic strategies discussed in Chapter 5 in Nintendo using? What are some of the recent offensive or defensive strategies that Nintendo has employed? Have these tactics been successful? 5 Is it fair to characterise Nintendo’s introduction of the Wii as a blue ocean strategy? Why or why not? 6 How well is Nintendo’s strategy working in terms of the financial performance it is delivering? Should shareholders be pleased? Why or why not? What 2-3 weaknesses do you see in Nintendo’s financial performance?

7 What does a SWOT analysis reveal about the attractiveness of Nintendo’s overall situation? Is the company’s competitive position as solid as top management seems to believe? Does the company have a competitive advantage? If so, what is the basis for this competitive advantage and is the advantage sustainable? 8 What does a competitive strength assessment (as per the methodology in Table 4.2 of Chapter 4) reveal about whether Nintendo has a competitive advantage? 9 What recommendations would you make to Nintendo to improve its competitiveness in the video game console industry and to maintain its favourable positioning vis-à-vis Microsoft and Sony?


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