Is Nintendo a blue ocean?

Is Nintendo a Blue Ocean?

The concept of Blue Ocean Strategy, introduced by W. Chan Kim and Renée Mauborgne, suggests that businesses can create new market space by breaking away from the competition and creating a "blue ocean" of uncontested market space. The term "red ocean" refers to the existing market where many competitors are fighting for a share of the same market space. In this article, we will examine whether Nintendo, a legendary gaming company, is a blue ocean or not.

Direct Answer:
Yes, Nintendo is a blue ocean. The company has consistently created new market spaces and disrupted the existing ones, making it a pioneer in the gaming industry.

History of Innovation
Nintendo has a rich history of innovation, starting from its humble beginnings in the 19th century as a playing card manufacturer. The company’s foray into the gaming industry began in the 1970s with the release of its first arcade games, including Sheriff and Radar Scope. However, it was the release of the NES console in the 1980s that catapulted Nintendo to stardom, thanks to its iconic games such as Super Mario Bros. and The Legend of Zelda.

Breaking Away from the Competition
Nintendo’s success can be attributed to its ability to break away from the competition and create a new market space. In the 1990s, Nintendo introduced the Game Boy, a handheld console that revolutionized the gaming industry. The Game Boy was a massive success, selling over 118 million units worldwide. This success can be attributed to Nintendo’s innovative approach to gaming, which focused on creating portable, accessible, and user-friendly games.

Nintendo’s Blue Ocean Strategy

Wii and DS: New Market Spaces
Nintendo’s success continued with the release of the Wii and DS consoles in the 2000s. The Wii introduced motion controls, which allowed players to interact with games in a new way. The DS, on the other hand, introduced touch-screen gaming, which further pushed the boundaries of gaming innovation. Both consoles were massive successes, with the Wii selling over 101 million units and the DS selling over 154 million units.

Switch: The Latest Blue Ocean
In 2017, Nintendo released the Switch, a hybrid console that combines the best of both worlds: home console gaming and portable gaming. The Switch has been a massive success, selling over 88 million units worldwide. The console’s innovative design and games, such as Super Mario Odyssey and The Legend of Zelda: Breath of the Wild, have further solidified Nintendo’s position as a blue ocean company.

Conclusion
Nintendo’s ability to create new market spaces and disrupt the existing ones has made it a pioneer in the gaming industry. The company’s innovative approach to gaming, from the Game Boy to the Switch, has consistently broken away from the competition and created a "blue ocean" of uncontested market space. As a result, Nintendo is a blue ocean company that has consistently created value for its customers and shareholders.

References:

• Kim, W. C., & Mauborgne, R. (2005). Blue Ocean Strategy: How to Create Uncontested Market Space and Make the Competition Irrelevant. Harvard Business Review Press.
• Nintendo. (2022). History of Nintendo. Retrieved from https://www.nintendo.com/history/
• Statista. (2022). Number of Nintendo Switch consoles sold worldwide from 2017 to 2021. Retrieved from https://www.statista.com/statistics/1121415/nintendo-switch-consoles-sold-worldwide/