Wednesday, November 20, 2013

Blue Ocean Strategy - Nintendo Wii

Blue Ocean Strategy

By: Teja Setty (VTS)

The concept of a Blue Ocean strategy basically revolves around the idea of creating an uncontested market space, and eliminating the need for a value - cost trade off. In such a scenario, existing competition becomes mostly irrelevant, and the value proposition of the organization working the blue ocean strategy cannot be easily replicated.

Nintendo Wii is a great example of an organization that worked the blue ocean strategy. At a time dominated by the PlayStation and Xbox consoles which provided entertainment to most serious gamer's, Nintendo came up with an alternative, less graphically intense but more fun console in the form of the Wii. Wii though often compared with the other two consoles in sales etc, were aiming at a whole different market segment. They were targeting not just hardcore male gamers, but also people who just wanted to have fun with a group of friends playing tennis or bowling. They targeted men and women across all age groups because the console was easy and fun to use.

They also managed to work against the normal value cost expectations of consumers based on graphical capability, by making their games less graphically intense and jut more simple and fun.

However, the differentiation or additional value Nintendo created was not something they could hold on to for. As of the present day scenario, the major demand is back for the serious gaming consoles, as they have been enabled with the capability to work and provide the value Wii does in addition to the traditional hardcore gaming console features. The Wii remains attractive as a low price console, for a purely fun loving experience, but does not provide any value to intense gamers anymore.



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