The primary issue facing management in this case is that while Nintendo continues to create gaming products, they are not keeping up with their global competition to the best of their ability. Nintendo is a company that has had great success in the last 150 years in the gaming market. They have prided themselves in keeping their cultural traditions alive, while producing competitive games and software devices for gamers around the world. The game console and video game market is changing rapidly as technology advances. Companies such as Apple and Microsoft have introduced new platforms of gaming that allows users to participate on-the-go, and also involve a social media aspect to it. Nintendo has started to fall behind in their competition, which is why the company must ask themselves if they can continue to sustain their current practices, or if they should modify their business practices to gain a better competitive edge?
Culture Discussion
1) Nintendo has structured their firm in a way that they can continue to practice their Japanese values, but also continue to compete with their progressive global competitors. The
…show more content…
Their competition has upped their game everywhere from software development strategies to product offerings. Nintendo must change their practices in order to remain competitive in this market. Nintendo’s strategy of setting console prices low for consumers seems like it would a beneficial strategy, however it forces them to set their licensing fees higher than their competitors. This has deterred publishers from working with them. While lower costs are a benefit for their consumers, their competitors price their products at a higher level, and are gaining more market share than Nintendo. If Nintendo aligned their prices with their competition, they would potentially have more resources to devote towards producing new products that their competitors have not yet