Nintendo Co., Ltd
SWOT Analysis
INDUSTRY OVERVIEW
Founded in 1889 by Fusajiro Yamauchi, Nintendo Co., Ltd, known as Nintendo Karuta then,
was originally established for producing handmade hanafuda playing cards. Today, with CEO
Shuntaro Furukawa, that same company is one of the best in the video game and consumer
electronics industries. Although headquartered in Kyoto, Japan, Nintendo has branches that
spread globally, including subsidiaries in America, Europe, Australia, and Korea.
Nintendo gained its first international recognition in 1985 with the release of the Nintendo
Entertainment Center (NES). Since then, the company has released some of the most popular
video game consoles in the industry’s history, such as the Game Boy (1989), the SNES
(1990), the Nintendo DS (2004), the Wii (2006), and most recently, the Nintendo Switch
(2017). Over the decades, these consoles became the platforms for the company’s famous
franchises, including Mario, Donkey Kong, Pokémon, The Legend of Zelda, and many more.
SWOT ANALYSIS
In this paper, I will be conducting a SWOT Analysis for Nintendo Co., Ltd. This analysis
assesses an organization’s strengths, weaknesses, opportunities, and threats, providing the
firm with insight into factors such as timing market entry into a new geographic area or product
category (Pride & Ferrell, 2020). I will first consider a SWOT Diagram for the company, and
then follow with a breakdown of each component. Below is the SWOT Diagram:
NINTENDO CO., LTD SWOT ANALYSIS
S W O T
Strengths Weaknesses Opportunities Threats
100+ years of experience Product Failures Possible expansion into Strong Competition
other markets
Competitive Pricing Strong Dependencies Rises in Piracy
Widespread Distribution Investing in Mobile Growth of other gaming
Network Games platforms
1
, NINTENDO CO., LTD
SWOT Analysis
Broad Variety of Games
STRENGTHS
100+ years of experience
With over 100 years of experience, Nintendo has significantly impacted the video game
industry. The brand name is highly recognized across the world and is considered
synonymous with gaming. The company has done an excellent job assessing the needs
of its consumers by consistently delivering great products.
Competitive Pricing
The past couple of years have shown a rise in a particular gaming trend – free-to-play
online video games. Despite these games being completely free to register and play,
they have proven to be quite profitable through in-game purchases, which cost real
money. Well-known examples, like Fortnite and Apex Legends, have influenced other
games to follow the same model (Koksal, 2019). However, Nintendo has been able to
compete with this with their pricing strategy. Despite the high prices the company sets
for the launch of their products, they maintain a healthy consumer market by quickly
reducing those prices once they have accumulated some attraction.
Widespread Distribution Network
As mentioned previously, Nintendo has branches that spread globally, including
subsidiaries in America, Europe, Australia, and Korea. In Japan alone, the company is
one of the wealthiest and most valuable. Its global expansion has allowed the company
to increase its consumer market, effectively increasing its sales.
Broad Variety of Games
There are millions of people in the world who play video games, including myself.
Naturally, we don’t all play the same type of games, which leads people to gravitate
towards their favorite companies. However, Nintendo is responsible for producing an
immense variety of games, including action, adventure, puzzles, strategy games,
simulations, role-playing, racing, sports, and educational games. There is something for
everyone and any situation. A great example is Animal Crossing: New Horizons for the
Nintendo Switch, which sold around 11 million copies within its launch month. When the
coronavirus pandemic forced everyone into lockdown, millions of people turned to video
games for fun and safe social interaction, which was what the game offered through the
comfort of a carefree existence in nature (MacDonald, 2020).
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SWOT Analysis
INDUSTRY OVERVIEW
Founded in 1889 by Fusajiro Yamauchi, Nintendo Co., Ltd, known as Nintendo Karuta then,
was originally established for producing handmade hanafuda playing cards. Today, with CEO
Shuntaro Furukawa, that same company is one of the best in the video game and consumer
electronics industries. Although headquartered in Kyoto, Japan, Nintendo has branches that
spread globally, including subsidiaries in America, Europe, Australia, and Korea.
Nintendo gained its first international recognition in 1985 with the release of the Nintendo
Entertainment Center (NES). Since then, the company has released some of the most popular
video game consoles in the industry’s history, such as the Game Boy (1989), the SNES
(1990), the Nintendo DS (2004), the Wii (2006), and most recently, the Nintendo Switch
(2017). Over the decades, these consoles became the platforms for the company’s famous
franchises, including Mario, Donkey Kong, Pokémon, The Legend of Zelda, and many more.
SWOT ANALYSIS
In this paper, I will be conducting a SWOT Analysis for Nintendo Co., Ltd. This analysis
assesses an organization’s strengths, weaknesses, opportunities, and threats, providing the
firm with insight into factors such as timing market entry into a new geographic area or product
category (Pride & Ferrell, 2020). I will first consider a SWOT Diagram for the company, and
then follow with a breakdown of each component. Below is the SWOT Diagram:
NINTENDO CO., LTD SWOT ANALYSIS
S W O T
Strengths Weaknesses Opportunities Threats
100+ years of experience Product Failures Possible expansion into Strong Competition
other markets
Competitive Pricing Strong Dependencies Rises in Piracy
Widespread Distribution Investing in Mobile Growth of other gaming
Network Games platforms
1
, NINTENDO CO., LTD
SWOT Analysis
Broad Variety of Games
STRENGTHS
100+ years of experience
With over 100 years of experience, Nintendo has significantly impacted the video game
industry. The brand name is highly recognized across the world and is considered
synonymous with gaming. The company has done an excellent job assessing the needs
of its consumers by consistently delivering great products.
Competitive Pricing
The past couple of years have shown a rise in a particular gaming trend – free-to-play
online video games. Despite these games being completely free to register and play,
they have proven to be quite profitable through in-game purchases, which cost real
money. Well-known examples, like Fortnite and Apex Legends, have influenced other
games to follow the same model (Koksal, 2019). However, Nintendo has been able to
compete with this with their pricing strategy. Despite the high prices the company sets
for the launch of their products, they maintain a healthy consumer market by quickly
reducing those prices once they have accumulated some attraction.
Widespread Distribution Network
As mentioned previously, Nintendo has branches that spread globally, including
subsidiaries in America, Europe, Australia, and Korea. In Japan alone, the company is
one of the wealthiest and most valuable. Its global expansion has allowed the company
to increase its consumer market, effectively increasing its sales.
Broad Variety of Games
There are millions of people in the world who play video games, including myself.
Naturally, we don’t all play the same type of games, which leads people to gravitate
towards their favorite companies. However, Nintendo is responsible for producing an
immense variety of games, including action, adventure, puzzles, strategy games,
simulations, role-playing, racing, sports, and educational games. There is something for
everyone and any situation. A great example is Animal Crossing: New Horizons for the
Nintendo Switch, which sold around 11 million copies within its launch month. When the
coronavirus pandemic forced everyone into lockdown, millions of people turned to video
games for fun and safe social interaction, which was what the game offered through the
comfort of a carefree existence in nature (MacDonald, 2020).
-2
