Individual assignment 2
( Internal Analysis)
BUS 400- 003
Name: Hamda Eissa
ID: 201004785
Each company in any industry especially the one that has many competitors that compete each other to be the leader in that market, has to analyze its internal performance. This analysis could help the company to enhance its strengths and to know its weaknesses to take any actions that the company needs. Nintendo; in the video game industry, has two main rivals which are: Sony and Microsoft, so it has to improve its performance to be the leader in this market. In this research paper, we will discuss three main parts of the internal analysis that are related to Nintendo.
# Value Chain Analysis:
Every company in any industry consists of collection of activities that help the company to create value for their customers, these collection of activities celled “ value chain”. The value chain has two types of activities: the primary activities and costs, and the support activities and costs. We will explain both of them that are related to Nintendo.
The first type is the primary activities and costs that is contains of five different activities. Nintendo had only one manufacturer in the past which was “Taiwan based Foxconn precision Components”. This company was responsible to manufacture the components of Wii; the last new video game of Nintendo. But after the firm noticed that the demand on its new video game continue to increase, the management of Nintendo decided to diversify its suppliers that manufacture their video games’ components such as; the chips, and for assembling the Wii system. This was related to the supply chain management.
As a result of the increasing demand on Wii, Nintendo’s management decided to make W...
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...y to be more valuable and organizational.
To conclude, Nintendo’s core competencies are: create video games that cost the people less as it did with Wii, it depends more on innovations and creativity instead of advanced technology, and it targets new segments of people such as; the elderly and women. The company has to worry about two main things. The first one is that the firm should create some video games with technology and graphics to attract people who like technology. The second thing is that the company should open stores that only sell Nintendo's games to give more choices for people who like its games. These two ways could help Nintendo to increase its sales and its profits.
Appendix 1: Values Chain Analysis:
Appendix 2: Competitive Strength Assessment:
Appendix 3: VRIO framework:
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