Subject category:
Strategy and General Management
Published by:
INSEAD
Length: 12 pages
Data source: Published sources
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.
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.