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Nintendo Co. Ltd. (SWOT Analysis)

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“SWOT is an acronym for the internal Strengths and Weaknesses of a firm and the environmental Opportunities and Threats facing that firm. SWOT analysis is a widely used technique through which managers create a quick overview of a company’s strategic situation. The technique is based on the assumption that an effective strategy derives from a sound “fit” between a firm’s internal resources (strengths and weaknesses) and its external situation (opportunities and threats). A good fit maximizes a firm’s strengths and opportunities and minimizes its weaknesses and threats. Accurately applied, this simple assumption has powerful implications for the design of a successful strategy.”

Nintendo Co. Ltd.

Nintendo is engaged in development and marketing of interactive entertainment products. It manufactures and markets hardware and software for its home video game systems. The company also produces playing cards, Karuta and other products. The company primarily operates in Japan. It is headquartered in Kyoto, Japan, and employs about 3,977 people.

Strengths, Weaknesses, Opportunities and Threats (SWOT)

Location of Factor

TYPE OF FACTOR

Favorable

Unfavorable

Internal

Strengths

  • Strongly established brands
  • Robust revenue growth
  • Strong cash flow from operations

Weaknesses

  • Inventory shortages

External

Opportunities

  • Rising demand for company's products and related software
  • Growing US games software market
  • Increasing demand for online gaming

Threats

  • Short products lifecycle
  • Slowdown of the Japanese, the US and European economies
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