Blue ocean Red Ocean strategy

1. Nintendo Wii Case Study 4.1 International Marketing Bryan Witt David Zaki

2. History and background •  A video game console is just a computer that is made only. To Play games. •  These systems started to gain popularity in the 1970s with consoles that played only Pong. •  Current console success started in 1985 with Nintendo’s super Smash Brothers.

5. Marketing The strategy for marketing consoles is based on: –  Better technologies/graphics Ex: HD, Blue Ray and 3D –  Better games Ex: FIFA, Halo and Mario

6. Production •  Production started in the US then moved to China and Japan. •  Development is expensive but the consoles cost little to produce. •  The longer a product is sold the more profitable each sale.

7. Competition •  As the market became more profitable: •  Computer companies began investing in the market. •  Sony created it’s famous PlayStation •  Microsoft introduced the Xbox and Xbox live.

8. Growth and Profit Strategies

9. Red Ocean Blue Ocean “Bloody competition “Why compete to take a larger share when you don’t in the market” have to ?”

10. Red Ocean §  Basis of competition is trying to get a bigger share in the same defined market. §  Boundaries are defined and accepted. §  Competitive rules of the game are well-known and predefined. §  example.

11. Blue Ocean §  All the industries not in existence today. §  You create the demand rather than fight over it. §  You define the rules for competition. §  You are the ONLY player in such a market.

12. A MORE EXCITING game console!!!

14. How Nintendo applied Blue Ocean Strategy §  Unusual Gender for the market-Females §  Unexpected age – Elders §  Different target group - Families §  Different way of playing - Motion §  It’s no longer about controllers §  They simply jumped in another ocean by changing the whole game console market

19. How Nintendo applied Blue Ocean Strategy §  Unusual Gender for the market-Females §  Unexpected age – Elders §  Different target group - Families §  Different way of playing - Motion §  It’s no longer about controllers §  They simply jumped into another ocean by changing the whole game console market

20. Factors of competition

21. Competitors’ Strategies •  Microsoft’s Xbox 360 - Target the ‘serious’ gamer: young males - Better graphics, live internet gaming •  Sony’s PlayStation 3 - Bigger but less focused target group

22. Did Blue Ocean strategy work for Nintendo ?

23. The future •  The market is trending towards motion controls and special recognition. •  This was shown by the success for Nintendo’s Wii. •  However the market also favors more powerful systems.

24. Conclusion •  Sony’s PS3 has developed wand controls for motion recognition. •  Microsoft has also developed the Kinect for spatial recognition. •  This shows that a Blue Ocean never stays Blue. Competition often turns it into a Red Ocean and the cycle goes on.

25. New Blue Oceans Sony creates Blue Ray more data storage on a disc Success is unsure at this point

26. New Blue Oceans Microsoft Kinect is spatial recognition helps MS gain leading market share

27. New Blue Oceans Nintendo unveils it’s next generation of console, the Wii U A slightly different direction

28. Thank You

Blue ocean Red Ocean strategy

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Blue ocean Red Ocean strategy