Saturday, December 11, 2010

Winning (Chapter 13) Organic Growth - Nintendo Wii

Starting something new from inside something old, it is a very exciting moment in every business. It is slightly the same as Change. We can add new ideas, process or manpower in Change process to gain the growth at the end. This topic is about starting something new which this new ideas are no longer exists in the market before. Jack Welch suggests the senior level management should spend plenty up front, put the best, hungriest and passion people in leadership roles. They should make an exaggerated commotion about the potential and the importance of the new venture. They should find the right balance between supporting and monitoring the new venture.

Nintendo Wii was released by Nintendo in Nov 2006. It is the seventh generation console of its video game console and it is used to compete with Microsoft Xbox 360 and Sony PlayStation 3. It has some many breaks through for this video game console with the traditional Nintendo game console, Xbox 360 and Play Station. Xbox 360 are major in online network platform, Play Station are major in Blue Ray movie disc. However, the consumer would like to purchase a video game console for fun, love and family culture. Nintendo seeks this idea and they set up a develop team on new venture in video games development. Eventually, in Dec 2009, wii broke the record for best selling console in a single month in United States.

A distinguishing feature of wii is its wireless controller and senor bar. The player holds the wii remote at a pointing device in front of the senor bar. The senor bar would detect the movement in three dimensions. The players can control the remote in 360 dimensions in front of the TV set. Nintendo launches the wii sports, it allows the multi players join to play the game at the same time. They can perform the movement in real direction such as golf, tennis, base ball etc. This kind of playing method is against the traditional controller. Thus so many motion games such as Mario Kart, Mario & Sonic in Olympic games etc.

Another new venture of Nintendo is the traditional character Mario. This character is first appeared in 1985. In 2007, the design team develops the new feature of Mario’s motion in Mario Galaxy. Mario can be displayed in 3D in the story background in space rather than Mario adventure land. Mario Galaxy 2 will be released in Dec 2010. The player controls Mario in 3D planets rather than the traditional 2D platform.

In 2008, the Olympic game is organized in Beijing China. Nintendo links up the former competitors Sega and design a game which is Mario & Sonic at the Olympic Games. Sonic is the major character which is used to compete with Mario. This game is officially licensed by the International Olympic Committee (ICO) through exclusive licensee International Sports Multimedia. This is the first cross over for two different kind character platforms. The player can select their favorite characters to compete each other on the field.

Jack Welch indicates that if the CEO sets up the right path to the new venture and adopts 3 guidelines as in above, a perfect storm will come out. No one can estimate the new technique can rock the world like wii. Start to move to a new venture is starting from something old in the business and entering a new generation which is unknown. Nintendo sets up the correct path to a new venture. They research the demand from the consumers and develop a new video game system. They listen to the voice from the consumers rather than develop a new technique without observes on the consumers. In the middle of the development, errors can come out in any moment. Thus the CEO has to choose the best, top of the list staff in the R&D team. He should state the potential and the importance of the new venture and admit to accept all the failures in the prototype stages. Finally, the perfect storm is launched in the market and rapid growth for the new business in its company.

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