Marketing

1) Based on the following case, which option from Ansoff’s strategic opportunity matrix did Nintendo engage in when it launched the Wii U?

Support your answer with examples.

CASE ASSIGNMENT: Nintendo

In the early days of video games, gaming wasn’t exactly a social affair. Sure, you could spend hours playing the same game, but it was with two or three other players at most. And of course, the earliest consoles were great at video games, but there were no other social features built into them. Now, gaming has been completely transformed by online networks and social media. The video game market is filled with smartphones, tablets, laptops, social networking Web sites, and other highly connected ways to play.

Within this evolving marketplace—where success is seen by companies that emphasize mobility and multi-connectivity—Nintendo adapted a seemingly outdated strategy with the release of the Wii U, which focuses primarily on games. Instead of selling its new console as a multimedia device that gives users a wide range of entertainment options and a high level of social connectivity, Nintendo is hoping to reestablish its competitive advantage by leaning on users’ love of The Legend of ZeldaSuper Mario Bros.Donkey KongMetroid, and other first-party franchises. According to Nintendo of America President Reggie Fils-Aime, this strategy is based on the company’s belief that what consumers want is games, not all of the other trappings: “When you talk to players and understand what they want, it can only be delivered through a dedicated gaming device.” Early Wii U sales indicate otherwise, however. Only 64,000 Wii Us were sold in February 2013, compared to 302,000 sales of Microsoft’s nearly ten-year-old Xbox 360 console.

Jamin Warren, “Not Your Childhood’s Video-Game System,” Fast Company, November 2012, 70-72; Matt Peckham, “What’s Going On with Nintendo’s Wii U?” TIME, March 15, 2013, http://techland.time.com/2013/03/15/whats-going-on-with-nintendos-wii-u (Accessed March 25, 2013).