How did Nintendo lose its blue ocean advantage?
Case Analysis
1. Based on the information found in the case, what are the two most important forces (of Porter’s five) facing the game console industry at the time of the case. Please identify what the specific impacts on profitability are, and what conditions are present that lead to this being a strong force. You should discuss all that are relevant for the forces you identify. Be sure to justify your responses.
2. Using the Four Actions Framework, identify how the Wii created a value innovation.
3. How did Nintendo lose its blue ocean advantage? How does this relate to the five forces framework?
4. Evaluate the company’s response to the actions of its competitors following the introduction of the initial Wii, and to its loss of market share following the introduction of the WiiU.
5. Based on the “Making the switch” article, have they developed another Blue Ocean? Why or why not?
6. What would you recommend the company do now? Be sure to justify your recommendations.
