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Nintendo Co. SWOT & PESTLE Analysis

ID : 5271753| Sep 2020| 15 pages

COMPANY PROFILE -Nintendo Co. Ltd

Business Sector :Consumer Electronics and Software

Operating Geography :Asia, Japan, Global

About Nintendo Co. Ltd :

Nintendo Co. was founded in 1889 by Fusajiro Yamauchi. The headquarters of the company are located in Kyoto, Japan. It is a Japanese MNC and one of the largest video gaming company globally. The founding name of the company was Marufuku Company, Ltd and it manufactured Hanafuda playing cards. The company name was changed in 1951 by the great-grandson of the founder, Hiroshi Yamauchi to the Nintendo Playing Card Company, Ltd. The Japanese word ‘Nintendo’ means "leave luck to heaven". Electronic technology was included within the company portfolio in 1970 with games of the Beam Gun Series which was introduced for the first time in Japan. This was the beginning which soon developed into the company’s current portfolio. The Famicom was a popular product of the company. Its popular gaming franchises today include Mario, Legend of Zelda, Metroid and Pokemon.
The vision statement of Nintendo reads, “Putting Smiles on the Faces of Everyone Nintendo Touches”. The mission statement is “Strong commitment towards production and marketing of best products and services”. The company has around 5.9K employees as per early 2019 records.

Nintendo Co. Ltd Revenue :

br>¥ 1,055,682 million - FY ended March 31, 2018
¥ 489,095 million - FY ended March 31, 2017

Competitive Analysis of Nintendo Co. Ltd

SWOT
PESTLE
The SWOT analysis for Nintendo is presented below:
Strengths
Weaknesses
1. Established brand - synonymous with gaming and entertainment
2. Strong performance of Nintendo Switch and 3DS console
1. Only gaming devices may impact growth
2. Limited presence in emerging markets
Opportunities
Threats
1. Utilize strong research & development capabilities
2. Capitalize on success of Pokemon GO
3. Online Switch service expected to bring in significant subscribers
1. Intense competition from players like Sony and Microsoft
2. Rise in availability of counterfeit gaming products in emerging markets
SWOT & PESTLE (combined)
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Detailed SWOT Analysis of Nintendo Co. Ltd

 

Strength

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Weakness

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Opportunity

1. Utilize strong research & development capabilities: Nintendo has developed strong research and development capabilities in the technology area, both hardware and software, over the years. It can utilize the same in other technological areas apart from gaming, such as non-entertainment consumer electronics and diversify its business. It spent U.S. $527 million in R&D in FY 2016-17.

2. Capitalize on success of Pokemon GO: The blockbuster game, Pokemon GO which was Nintendo’s first venture in mobile gaming has the potential to significantly increase its earnings. While the game has been only launched in major markets, it has a good potential globally. Nintendo can also capitalize on its other hit characters such as Super Mario and Zelda.

3. Online Switch service expected to bring in significant subscribers: Nintendo has announced the launch of online Switch service which will be available from 2018. The service is priced at $20 per year and is expected to bring significant subscription revenues. The service will also bring in more users availing other games through Nintendo’s digital download platform.

Threat

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References used in Nintendo Co. Ltd SWOT & PESTLE Analysis Report

1. Nintendo Annual Report 2019 - https://www.nintendo.co.jp/ir/pdf/2019/annual1903e.pdf

2. Nintendo Annual Report 2018 - https://www.nintendo.co.jp/ir/pdf/2018/annual1803e.pdf

3. Nintendo company website - https://www.nintendo.com/

4. Nintendo company profile - https://www.nintendolife.com/companies/nintendo

5. Nintendo mission and vision - https://bstrategyhub.com/nintendo-vision-mission-values-strategy-analysis/

The detailed complete set of references are available on request in the 'Complete report' on purchase.

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Nintendo Co. SWOT & PESTLE Analysis - SWOT & PESTLE.COM

SWOT & PESTLE.com (2021). Nintendo Co. SWOT & PESTLE Analysis - SWOT & PESTLE.com. [online] Available at: https://www.swotandpestle.com/nintendo-co/ [Accessed 01 Aug, 2021].

In-text: (SWOT & PESTLE.com, 2021)

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Nintendo SWOT and PESTLE analysis has been conducted and reviewed by senior analysts from Barakaat Consulting.

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