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Nintendo

Author: Kim, W. Chan ; Mauborgne, RenéeINSEAD Area: StrategyPublisher: Fontainebleau : INSEAD, 1998.Language: EnglishDescription: 11 p.Type of document: INSEAD CaseAbstract: The home video-game market in Japan was relatively small and the market in the US was on the verge of collapse. In Japan, Nintendo could expect stiff competition from a number of companies in, or actively considering an entry in this market. This did not look a good time for Nintendo to make an entry. Conventional strategic thinking would suggest that it is a suicidal action to enter the market. In 1990, however, Nintendo's sales would touch Yen 500 billion and its market value would exceed that of Sony, Japan's legendary consumer electronics company. This case illustrates the evolution of strategic actions of Nintendo to depict how this seemingly impossible success has been achievedPedagogical Objectives: Contrast between conventional strategic logic vs value innovation logic. Depict the evolution of home video-game industry. Describe how a new strategic thinking of Nintendo in a knowledge business has been played out against many conventional competitors.
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Contrast between conventional strategic logic vs value innovation logic. Depict the evolution of home video-game industry. Describe how a new strategic thinking of Nintendo in a knowledge business has been played out against many conventional competitors.

The home video-game market in Japan was relatively small and the market in the US was on the verge of collapse. In Japan, Nintendo could expect stiff competition from a number of companies in, or actively considering an entry in this market. This did not look a good time for Nintendo to make an entry. Conventional strategic thinking would suggest that it is a suicidal action to enter the market. In 1990, however, Nintendo's sales would touch Yen 500 billion and its market value would exceed that of Sony, Japan's legendary consumer electronics company. This case illustrates the evolution of strategic actions of Nintendo to depict how this seemingly impossible success has been achieved

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