E-Commerce Plan Nintendo's Global Leadership Thesis

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S. Home Console Hardware Market Figure 4: Home Console Hardware Sales in Europe

Source: Nintendo Investor Relations (2009)

Clearly the Wii was able to gain an exceptionally large market share quickly after being launched. This was accomplished in the midst of a global recession as well

Market Demographics and Needs

For many who believe the computer gaming market is one that is composed of teenagers, their stereotypes of gamers is quite off the mark. Figure 5, Computer Gaming Demographics, 2007, illustrates the demographics of the U.S. computer gaming market which is comparable to other western nations. Nearly 60% of the total market is comprised of men who are 45 years of age or older. Notice also that women, age 18 to 45 are also nearly one out of every three gamers. Nintendo has created cross-over games which have been very successful in addressing these needs of these demographic groups. The development of "build your own game" strategies will also need to take this into account.

Figure 5: Global Computer Gaming Demographics, 2007

Market Segment

Share

Males 18-45

37.0%

Females 18-45

28.0%

Males 45

2.0%

Source: Entertainment Software Association, (Hammill, 2007)

Marketing Plan

The primary focus of the marketing plan will be on using Web 2.0 technologies (O'Reilly, 2006) and social networking (Bernoff, Li, 2008). A representative same of Web 2.0 applications is shown in Appendix a. The marketing plan's messaging will focus on giving customers the flexibility of creating any game they choose, and even customizing it so there are unpredictable outcomes over time. The reliance on a highly collaborative development base will also make this successful. The heavy use of Search Engine Optimization (SEO) will also be used to promote the gaming site as well. The initial products sold will be branded from Nintendo and over time the breadth of customizable games will continue to grow on the site. The use of these online methods in addition to events will form the foundation of the marketing plan.

Company Structure and Management

The structure of the company will be more hierarchical, with functional department managers reporting to the president and CEO. Accounting and Finance, Engineering, it, Marketing, Sales and Service will all be direct reports to the CEO.

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There will also be a focus on smaller, more collaborative teams over extensive organizational structures. This will ensure the organization is more agile, les encumbered by a structure it cannot work in.

Operation Plan

The operation plan is fairly straightforward as the series of applications that will run the proposed e-commerce venture will be hosted on Amazon Web Services (AWS). AWS is exceptional in its reliability and maintainability of systems. This will be the first phase of the operational plan. The second phase is to create a series of game developer's kits and a game development community which will serve to support the development of individual game modules. The operational plan for this will include staffing up specific development engineers and support staff which will be able to quickly guide developers to create individualized modules. The third aspect of the operational plan will be the development and continual refinement of the subscription pricing and annuity revenue model. Fourth is the actual launch of the company online and its promotion. Fifth is the continual monitoring of its progress through the use of analytics.

Product Design and Development Plan

The product design and development plan centers primarily on the development of strong relationships with developers throughout the Nintendo community. There is also the need to create a continual stream of updates to the game development kits so that successively greater features can be included. Lastly the product design and development plan must include the ability to interlink modules and suggest an optimal game design. This approach to mass customization puts the customer at the center of designing their own game, and there will be recommendations on how to best optimize performance by interest area. A guided selling application will be used to assist customers in defining which specific game type they want to produce and download.

Financial Projections.....

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