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Case
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Reference no. 398-030-1
Published by: INSEAD
Published in: 1998

Abstract

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 into this market. This did not look like 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.
Location:
Industry:
Size:
USD7 billion
Other setting(s):
1975-1995

About

Abstract

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 into this market. This did not look like 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.

Settings

Location:
Industry:
Size:
USD7 billion
Other setting(s):
1975-1995

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