Yes friends Mario and Luigi, these lovable Italian stereotypes have represented Nintendo since the company’s inception. And of course we have Apple; represented by an apple. So what does this blog title really mean?
Team Alpha submits to you our Marketing Strategy of the day. What’s this strategic plan? You guessed it – Integrative Growth! Below we provide a quick integrative growth summary for Apple and Nintendo.
Let’s start with Apple. Although sales for Apple’ s I-Phone 5 have been solid, it’s no secret that Apple is being viewed in a vulnerable position having witnessed their stock prices falling . The overall perception is that Apple may be losing its innovation edge due in no small part to the loss of Steve Jobs.
On the other end of the spectrum we have Nintendo which launched the most successful Video Game console in history known as the Wii over 6 years ago. Their follow-up, the Wii U, launched this past November and is struggling out of the gate. Nintendo’s sales numbers pale in comparison to the Wii when it first launched. Despite this, the Japanese company is still solid with strong cash flow aided by their software sales and portable videogame system the 3DS.
So both companies have found themselves in vulnerable positions and at a crossroads; something neither is accustomed to. The next 5 years will be critical and could ultimately decide their fates.
We know that Apple is developing a TV which analysts expect will hit the market in a few years. Nintendo has just released a new console and needs to secure its longevity. Therein lies Team A’s marketing strategy for these two companies, a joint venture into the TV market to sell the TV/Video Game Console of tomorrow. This merger and alliance is a match made in heaven and I’ll tell you why:
- Nintendo has always been the innovator in the video game industry and standard bearer. From software to consoles, Nintendo leads the pack when it comes to quality and innovation. This holds true with Apple. Always the innovator and synonymous with quality.
- If Apple wants to enter the TV market, and we know they do, they have to do something bold and let’s be realistic, voice command on your TV is more of a novelty than a true innovation. Nintendo basically invented modern video games. From creating the modern controller button layout, to motion controls, they need to continue creating and moving the industry forward.
- Both Apple and Nintendo share the same competitors like Microsoft and Sony which are themselves competitors in the videogame market (Playstation 4 vs X-Box 360). This joint venture will force both Microsoft and a Sony to re-evaluate their Videogame consoles and may lead to a similar strategy.
So the Plan is simple – an Integrated Growth Strategy. Create the first TV/Video game console that will be able to do everything a regular TV can do with the added benefit of being able to play video games. Popular 3rd party Software developers like Electronic arts and Konami will jump at the opportunity to publish games for this new hybrid TV/Console.