Business Strategy – Nintendo’s Business Model Case Study

 

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Assignment Details:-

• Assignment Type: Case Study
• Subject: Business Strategy
• Words: 1750 Words

 

Case Study Assignment

 

Answer these questions based on given case study documentation that provides an overview of Nintendo’s business model as the platform provider of the Switch video game console. Specifically, discuss the following aspects:

Question 1 : Why is Nintendo’s business model best described as a “platform business model”?

Question 2 : In the context of Nintendo, discuss the distinct features of a platform business model:

• Who are the different sides to Nintendo’s business model?
• What is Nintendo’s challenge in solving the “chicken-or-the-egg” problem?
• Discuss some of the ways in which Nintendo has resolved this problem?
• What is the price structure (revenue model) for the Nintendo Switch platform? Who are the “subsidy-side” users and who are the “money-side” users?

Question 3 : In the context of Nintendo, discuss some of the key elements of strategy as ecology:

• Who are Nintendo’s “complementors” and how do they benefit Nintendo?
• Discuss how Nintendo sometimes competes with its complementors?
• From the perspective of Nintendo’s complementors, discuss what are the benefits and disadvantages to Nintendo competing with its complementors?
• How does Nintendo manage to attract the “right” mix of (high quality, exclusive, and diverse) complements to its platform?

Question 4 : Describe how in the context of Nintendo (and similar platform business models) network effects can be one of the main value drivers to the point that they can create an “isolating mechanism” around Nintendo’s competitive advantage in this market.

Instructions: Structure your answers in the order specified above, using sub-headings that correspond to the questions and sub-questions given.

 

REFERENCES

Asakura, R. 2000. Revolutionaries at Sony: The Making of the Sony PlayStation and the Visionaries Who Conquered the World of Video Games. McGraw‐Hill, New York.

Inoue, O. 2010. Nintendo Magic: Winning the Videogame Wars. Vertical, Inc., New York.

Kent, S.L. 2001. The Ultimate History of Video Games: From Pong to Pokémon and Beyond ‐ The Story Behind the Craze that Touched Our Lives and Changed the World. Three Rivers Press, New York.