I have a shorter blog this week, based on the following article from Forbes: http://www.forbes.com/sites/erikkain/2013/04/24/iwata-steps-in-as-ceo-of-nintendo-america-tatsumi-kimishima-heads-back-to-japan/.
Apparently, Nintendo is making some significant changes to their board of directors, pending approval of its shareholders. Three members on the board, including the Senior Managing Director will be retiring, so there are a lot of moves that are being made. The most important change in all of this is that Nintendo’s president, Satoru Iwata, will take over as CEO of Nintendo of America (NOA). He is replacing the current CEO of NOA, who is being promoted to Managing Director of Nintendo Co. Ltd. Nintendo says that Iwata’s move to CEO of NOA “will support the company’s unified global strategy, allow streamlined decision making and enhance Nintendo’s organizational agility in the current competitive environment”. Seeing that he is the Global President, it makes sense that he would head an international branch of Nintendo. The Global President probably knows the global strategy the best. Decisions will be made faster, which is good as long as they are not made too hastily. Iwata seems like a good fit and I think this can help Nintendo. Among many others things, I think Nintendo really needs to switch it up and get some kind of a psychological edge going on. I think of it as a comparison to a sports team that is struggling. If your hockey team isn’t scoring goals, you might want to try to pair up different defensemen and switch up the forwards on your lines. I know this can sound stupid, but, obviously, they aren’t doing much right at the moment. The downside is that it will take a little time for people to adjust to their new positions, possibly slowing productivity at first. However, seeing that they have all been with the company for so long and have a lot of experience within high-level positions in Nintendo, I doubt it will take them very long to adjust.
Seeing that I’m on the topic of global strategy, I figured I would give a brief analysis of their global strategy as a whole. I’m on the fence about the fact that Nintendo’s global strategy is a localization strategy or an international one. I feel like they could be considered to be using an international strategy since all of their products are pretty similar. However, they do have some slight variations between their games and consoles between America and Japan, so if I had to pick a strategy and stick with it, I would say they are using more of a localization strategy. Nintendo has been known to make Japan-only video games. Also, they obviously have to change the language in their games based off of who they are selling them too. Also, their systems are set up to not play games from other countries. For example, an American Wii U console cannot play a game in Japanese. Since Nintendo is so adamant about not dropping their price, they are not going for one of the other two strategies that focuses on low costs. Nintendo’s entry mode is wholly-owned subsidiaries. From my understanding, NOA is a wholly-owned subsidiary. This is the best strategy for Nintendo since it gives them complete control, especially now that Iwata is taking over. They will have their Japanese president implementing Nintendo’s ideas directly into their American branch, making their ideas consistent throughout the countries.