General and Industry Environment that affect Nitendo’s Choice of Strategy
NITENDO’S CHOICE OF STRATEGY 2
General and Industry Environment that affect Nitendo’s Choice of Strategy
Nintendo Company is a video game company producing the game console. The choice of
strategy they mafe was dependent on general environment and industry environment factors.
Some of the general environment factors that affected Nintendo Company strategy include:
Demography: The number of population and the composition of the population affect the
environment. Some of the key aspects of demographics that affect Nintendo products include
disparities in income level, changes in ethnic population, rising or declining affluence, and aging
population.
Socio-cultural factors: Socio-cultural factors have a huge effect on people’s beliefs,
values, and lifestyles. Socio-cultural factors influence people’s perception about Nintendo
games. For instance, the age that plays video games varies from one culture to another. The
video game is popular among Black American youths for example as compared to Asians and
Indians.
Political Factors: Political processes and legislation develop regulations which companies
must comply during business operations. Political factors check the company operations. For
example, Sarbanes-Oxley helps in improving governance of corporations.
Technological Factors: Innovation and state of knowledge have a huge impact on the
Nintendo’s Company. Technology serves to improve video game console by enabling the
company to develop high-tech gadgets that are responsive and have enhanced picture quality.
Economic Factors: economic factors such as interest rates, consumer price index, gross
domestic income, and gross domestic product affect all industries (Dess et al., 2014). For
NITENDO’S CHOICE OF STRATEGY 3
example, an increase in interest rates reduces the purchasing power of consumers thus reducing
demand for Nintendo products.
On the other hand, some of the key industry factors that affected Nintendo’s choice of
strategy include;
Competitors: The number of competitors in the industry has an impact on a company’s
choice of strategy. Increasing competition implies that the share of costumers diminishes.
Therefore, there is the need for an enhanced business strategy to attract clients as compared to
other competitors. Firms use strategies such as advertising, price competition, and enhanced
customer service among others to counter competition (Dess et al., 2014).
Suppliers: Suppliers often have a huge impact on business operations. Suppliers can exert
bargaining power resulting to increasing price of input thus may compromise the price of goods
produced by Nintendo.
Customers: Customers have a huge impact on the choice of strategy that a company
should employ. Therefore, knowing and understanding customer help Nintendo in developing
and presenting effective marketing campaigns to boost sales and increase revenue.
In conclusion, there are quite some general and industry factors that affect Nintendo’s
choice of strategy. Some of the general key factors include: demographic, political, socio-
cultural, economic, technological and political factors. On the other hand, industry environment
factors include competition, suppliers, and customers.
NITENDO’S CHOICE OF STRATEGY 4
References
Dess, G. G., McNamara, G., & Eisner, A. B. (2014). Strategic management: Creating
competitive advantages. McGraw-Hill Education.
