Internal Company Analysis
Internal Company Analysis
From Strategic Management perspective
• Write an internal analysis based on (“Nintendo’s Strategy in 2009: The Ongoing Battle with Microsoft and Sony”)
• The analysis should focus only on Nintendo Company, don’t mention Sony & Microsoft.
Using the information presented in the case and your general knowledge of the market, please do the following:
1. Analyze the firm (Nintendo) using the value chain analysis tool. Make sure you show your model in the appendix.
2. Conduct a Competitive Strength Assessment of Nintendo vis-à-vis its competitors using the Key Success Factors determined in your external analysis of the case. Provide the comparison table in the appendix.
3. Analyze the firm (Nintendo) using the VRIO framework. Make sure you show your analysis in the appendix.
Begin your analysis with an Introduction and summarize your findings in a brief evaluation of the Firm’s Core Competencies and provide a ‘worry list’ for management.
Break the analysis into sections using the major headings provided in the exercise description.
In addition, use subheadings to break up long sections.
2. Show Impact
Your job is not to “spill back” the facts from the case. Assume that the person who reads your write-up will have read the case carefully. Support your statements of analysis with brief examples and/or data from the case information. Your focus should be on the impact, effect, and strategic implications of your analysis. Do not overlook exhibits in the case with additional data.
3. Apply Tools and Vocabulary
Demonstrate that you understand and can effectively apply the tools of strategic analysis: macro environment, driving forces, key success factors, industry analysis, financial analysis, VRIO, strategic group map and the nine cell industry attractiveness, competitive strength matrix. An effective case analysis effectively incorporates the language of strategic analysis throughout.
1. Company Situation
Provide an introduction that characterizes the essence of the company situation and sets the stage for the analysis that follows. Identify the key company-specific issues with which the company is dealing.
Company Value Chain Analysis. Outline the firm’s value chain and use benchmarking to highlight the competencies that the firm has developed and to compare the firm’s cost position with its rivals. In terms of the costs, you may use estimates of whether you think the firm has higher or lower costs than rivals (rather than doing a financial analysis). However, make sure to logically support your judgment with information from the case. Considering the value chain of the industry along with the value chain of the firm gives you an indication on the key success factors.
Competitive Strengths Assessment. Construct a table similar to the one on page 90 of your book (also in the slides) that compares the firm’s competitive strengths to its rivals. The important aspect here is the identification of the key success factors rather than the exact ratings.
VRIO Analysis. Discuss each of the four questions of the VRIO—The question of value, rarity, imitability, and organization in this section. Be clear on your differentiation between tangible resources, intangible resources, and organizational capabilities. Refer to the handout “The VRIO Framework: An Overview” as your guideline for this section.
Present accompanying tables for your analyses in the APPENDIX. Discuss the tables in the body of the paper.
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