Wii Innovate. How Nintendo created a New Market through the Strategic Innovation Wii

Table of Contents

• Introduction
• Background and current situation
• Formulation of Objectives and Problem Area
• Disposition of the Thesis
• Designing a Competitive Strategy
• Create Competitive Advantage
• The Structural Analysis of Industries
• Generic Competitive Strategies
• Cost Leadership
• Differentiation
• Focus
• Sustainability of the Competitive Advantage
• Blue Ocean Theory
• Nature of Blue Oceans
• Value Innovation
• Analytical Tools and Frameworks
• The Strategy Canvas
• The Four Actions Framework
• The Eliminate-Reduce-Raise-Create-Grid
• New Product Development
• Introduction
• Innovation
• Opportunity Identification
• Design
• Testing
• Product Life Cycle Management
• The Video Game Entertainment Industry
• Market Demarcation
• History of Nintendo
• The Market that the Wii would face
• The Current Generation
• Recent Trends in the Industry
• The Need for Change
• Structural Analysis of the Home Video Game Console Industry
• A New Strategy
• Nintendo's Blue Ocean
• Development of the Wii
• Identifying Blue Opportunities
• Designing a Blue Ocean
• Testing the New Console
• Introducing the Wii
• Managing the Product Life Cycle of the Wii
• Review on success
• Conclusion
• Concluding Remarks
• Outlook

Objectives and Key Themes

This thesis analyzes the strategic innovation of the Nintendo Wii, focusing on how the company created a new market through its innovative approach. It aims to explore the competitive strategy behind the Wii's success, analyzing the company's use of Blue Ocean Strategy and its impact on the video game industry.

• The strategic innovation process of Nintendo Wii
• The application of Blue Ocean Strategy by Nintendo
• The impact of the Wii on the video game industry
• The importance of market analysis and identifying blue opportunities
• The role of product development and life cycle management in strategic innovation

Chapter Summaries

• The introduction provides background information on the current situation of the video game industry and formulates the objectives and problem area of the thesis. It outlines the structure of the thesis and sets the stage for the subsequent analysis.
• Chapter 2 delves into designing a competitive strategy, examining the creation of competitive advantage through various frameworks such as the structural analysis of industries and generic competitive strategies. It introduces the Blue Ocean Theory, exploring its key concepts like value innovation and analytical tools like the Strategy Canvas, the Four Actions Framework, and the Eliminate-Reduce-Raise-Create-Grid.
• Chapter 3 focuses on new product development, exploring innovation and opportunity identification as core aspects of the process. It discusses the design, testing, and product life cycle management of new products, providing a framework for understanding the development of innovative products.
• Chapter 4 dives into the video game entertainment industry, starting with market demarcation and a historical overview of Nintendo. It analyzes the market the Wii would face, the current generation of consoles, and recent trends in the industry. The chapter then explores the need for change in the industry, examining the structural analysis of the home video game console industry and Nintendo's Blue Ocean strategy. It details the development of the Wii, including identifying blue opportunities, designing a Blue Ocean, testing the new console, introducing the Wii, and managing its product life cycle. The chapter concludes with a review of the Wii's success.

Keywords

This thesis explores the strategic innovation of Nintendo Wii, focusing on the company's use of Blue Ocean Strategy and its impact on the video game industry. The key concepts explored include competitive strategy, value innovation, market analysis, product development, and product life cycle management.