Nintendo and the Blue Ocean Strategy: Designing the Four Actions Matrix

Authors

DOI:

https://doi.org/10.32870/myn.vi55.7813

Keywords:

blue ocean strategy, Nintendo, video game industry, competitiveness

Abstract

The purpose of this article is to analyze the strategies adopted by Nintendo within the framework of the four-action matrix of the BOS (i.e., eliminate, reduce, increase, and create). Documentary research was implemented by scrutinizing the scientific bases of information accessible in electronic media (e.g., Web of Science and Scopus). For each of the four actions of the matrix, the following factors were identified: 1. eliminate the expensive face-to-face conferences; 2. reduce the graphic power of the video game console, the budgets, and the deadlines in the development of video games; 3. increase: the brand extension; and 4. create: nostalgic feeling. This study provides lessons and teachings to be considered by organizational strategists when designing strategies that leverage distinctive characteristics into competitive advantages that satisfy both established objectives and customer desires and expectations. Furthermore, the work can be a reference framework in subsequent empirical research.

References

Agnihotri, A. (2016). Extending boundaries of Blue Ocean Strategy. Journal of Strategic Marketing, 24 (6), 519-528. https://doi.org/10.1080/0965254X.2015.1069882

Benders, J. & van Veen, K. (2001). What’s in a Fashion? Interpretative Viability and Management Fashions. Organization, 8(1), 33–53. https://doi.org/10.1177/13505084018100

Bernal, C. (2022). Metodología de la investigación. Administración, Economía, Humanidades y Ciencias Sociales. Pearson.

Caldwell, C. & Anderson, V. (2017). Blue ocean strategies and disruptive innovation: Creative insights for competitive advantage. En C. Caldwell y V. Anderson (Eds.), Competitive Advantage: Strategies, Management and Performance (97-108). Business Issues, Competition and Entrepreneurship.

Chirinos, N. (2022). Disciplina empresarial para la implementación de estrategias de océano azul. CICAG: Revista Electrónica Arbitrada del Centro de Ciencias Administrativas y Gerenciales, 19(1), 49-60.

Christodoulou, I. & Langley, P. (2019). A gaming simulation approach to understanding blue ocean strategy development as a transition from traditional competitive strategy. Journal of Strategic Marketing, 28(8), 727–752. https://doi.org/10.1080/0965254X.2019.1597916

Church, N. J. (2024). Maintaining Your Marketing Competitiveness Through Marketing Innovations. Mercados y Negocios, 25(51), 3–30. https://doi.org/10.32870/myn.vi51.7713

Čirjevskis, A. (2017). Exploration of qualitative success factors of innovative e-business startups: Blue ocean strategy versus dynamic capabilities. International Journal of Business Excellence, 13(4), 459-478. https://doi.org/10.1504/IJBEX.2017.087755

Cooke, H., Appel-Meulenbroek, R. & Arentze, T. (2019). Adjustment of corporate real estate during a period of significant business change. International Journal of Strategic Property Management, 23(3), 171-186. https://doi.org/10.3846/ijspm.2019.7954

David, F.. & David, F.. (2017). Conceptos de administración estratégica. Pearson.

Demetrovics, Z., Urbán, R. Nagygyörgy, K. Farkas, J., Zilahy, D., Mervó, B., Reindl, A., Ágoston, C., Kertész, A. & Harmath, E. (2011). Why do you play? The development of the motives for online gaming questionnaire (MOGQ). Behavior Research Methods, 43(3), 814-825. https://doi.org/10.3758/s13428-011-0091-y

Dvorak, J. & Razova, I. (2018). Empirical Validation of Blue Ocean Strategy Sustainability in an International Environment. Foundations of Management, 10(1), 143-162. https://doi.org/10.2478/fman-2018-0012

Ellinger, A.., Naidoo, J., Ellinger, A.., Filips, K., & Herrin, G. (2020). Applying blue ocean strategy to hire and assimilate workers with disabilities into distribution centers. Business Horizons, 63(3), 339-350. https://doi.org/10.1016/j.bushor.2020.01.009

Erekson, O. & Williams, G. (2022). Moving from Blue Ocean Strategy to Blue Ocean Shift in Higher Education. Tertiary Education and Management, 28(2), 187-207. https://doi.org/10.1007/s11233-022-09092-w

Fils-Aimé, R. (2022). Disrupting the Game: From the Bronx to the Top of Nintendo. HarperCollins Leadership.

Flores, A. & Álvarez, M. (2019). Pokémon Go y sus factores de éxito: diseño de un modelo teórico. Estudios Generales, 35(151), 321-330. https://doi.org/10.18046/j.estger.2019.152.3265

Gallagher, D. (11 de noviembre de 2023). Microsoft’s Next Act: Bending the Videogame Business Without Breaking It. THE WALL STREET JOURNAL. Lionk: https://www.wsj.com/tech/microsofts-next-act-bending-the-videogame-business-without-breaking-it-274fa093

Grandío, P. (25 de febrero de 2020). Flops, Gigaflops, y Teraflops: Historia y perspectivas de PS5 y Xbox Series X. Vandal.

Harris, B. (2014). Console Wars: Sega, Nintendo, and the battle that defined a generation. HarperCollins.

Hernández, R. & Mendoza, C. (2023). Metodología de la investigación. Las rutas cuantitativa, cualitativa y mixta. McGraw Hill.

Hoang Mai, V., Ngoc Lan, N., Hoai Thu, L., & Nguyen, P. (2022). Blue Ocean Strategy as inclusive innovation policy for implementing disability employment legal rules from Vietnamese enterprise perspective. Lex Humana, 14(2), 208–230.

Inoue, O. (2010). Nintendo Magic: Winning the Videogame Wars. Vertical.

Kim, W. & Mauborgne, R. (2015). Blue Ocean Strategy: How to create uncontested market space and make the competition irrelevant. Harvard Business Review Press.

Kim, W. & Mauborgne, R. (2017). Blue Ocean Shift: Proven Steps to Inspire Confidence and Seize New Growth. Hatchette Books

Lauer, T. (2019). Generic Strategies, Outpacing and Blue Ocean - Discussing the Validity of Three Strategic Management Theories Using Case Studies from Airlines and Grocery Retail. Theory, Methodology-Practice, Review of Business and Management, 15(1), 57-66. https://doi.org/10.18096/TMP.2019.01.06

Leavy, B. (2018). Value innovation and how to successfully incubate “blue ocean” initiatives. Strategy and Leadership, 46(3), 10-20. https://doi.org/10.1108/SL-02-2018-0020

Lindič, J., Bavdaž, M., & Kovačič, H. (2012). Higher growth through the Blue Ocean Strategy: Implications for economic policy. Research Policy, 41(5), 928–938. https://doi.org/10.1016/j.respol.2012.02.010

Madsen, D. & Slåtten, K. (2019). Examining the Emergence and Evolution of Blue Ocean Strategy through the Lens of Management Fashion Theory. Social Sciences, 8(1). https://doi.org/10.3390/socsci801002

Magued, S. (2023). Adapting Global Administrative Reforms to Local Contexts within Developing Countries: Insights into the Blue Ocean Strategy. Administration & Society, 55(10), 1893-1910. https://doi.org/10.1177/00953997231198840

Mirghaderi, S., Aboumasoudi, A., & Amindoust, A. (2023). Developing an open innovation model in the startup ecosystem industries based on the attitude of organizational resilience and blue ocean strategy. Computers & Industrial Engineering, 181. https://doi.org/10.1016/j.cie.2023.109301

Mochizuki, T. (29 de junio de 2019). Sony Positions Next PlayStation for Hard-Core Gamers. THE WALL STREET JOURNAL. Link: https://www.wsj.com/articles/sony-positions-next-playstation-for-hard-core-gamers-11561800603

Mochizuki, T. (30 de octubre de 2018a). Nintendo CEO Optimistic That Switch Consoles Will Hit Sales Goal. THE WALL STREET JOURNAL. Link: https://www.wsj.com/articles/nintendo-ceo-optimistic-that-switch-consoles-will-hit-sales-goal-1540898921?mod=searchresults&page=1&pos=10

Mourtzikou, A., Stamouli, M., & Emmanouil, D. (2019). Implementation of the Blue Ocean Strategy in Healthcare. International Journal of Reliable and Quality E-Healthcare, 8(2), 36–49. https://doi.org/10.4018/ijrqeh.2019040103

Muhammad, S., Rosmaini, T. & Mehwish, R. (2017). Mediating role of innovation strategy between porter’s red ocean strategy and innovative performance. Advanced Science Letters, 23(9), 9239-9242. https://doi.org/10.1166/asl.2017.10062

Needleman, S. (17 de mayo de 2024). Microsoft Plans Boldest Games Bet Since Activision Deal, Changing How ‘Call of Duty’ Is Sold. THE WALL STREET JOURNAL. https://www.wsj.com/tech/microsoft-call-of-duty-game-pass-53e8930c

Nintendo (2024a). Dedicated Video Game Sales Unit. Link: https://www.nintendo.co.jp/ir/en/finance/hard_soft/index.html

Nintendo (2024b). Archivo de Nintendo Direct. Link: https://www.nintendo.com/us/nintendo-direct/archive/

Nintendo (2024c). Iwata Asks.Link: https://iwataasks.nintendo.com/es/

Ortenblad, A. (2007). The evolution of popular management ideas: an exploration and extension of the old wine in new bottles metaphor. International Journal of Management Concepts and Philosophy, 2(4), 365. https://doi.org/10.1504/ijmcp.2007.015131

Otis, G. A. (22 de abril de 2023). Bud Light Brewer Puts Two Executives on Leave After Uproar Over Transgender Influencer. THE WALL STREET JOURNAL. Link: https://www.wsj.com/articles/anheuser-busch-shake-up-after-transgender-influencer-was-featured-on-beer-can-a0ed8009

Pìlatti, L., Pereira, G. de Q., Herrera, J., de Lara, L., & Renaux, D. (2024). Blue Ocean Strategy in the Soccer Sector: A Real Madrid Case Study. Retos, 56, 567–576. https://doi.org/10.47197/retos.v56.102328

Porter, M. (1996). What is strategy. Harvard Business Review, 74(6), 61–78.

Porter, M. (1998). The competitive advantage: Creating and sustaining superior performance. Free Press

Porter, M. (2015). Estrategia competitiva: Técnicas para el análisis de los sectores industriales y de la competencia. Grupo Editorial Patria.

Raynor, M. (2016). Strategic Risk: The Risks “of” and “to” a Strategy: The Case of Blockbuster and the Need for Strategic Flexibility. In Green, P. E. J. (Ed.). Enterprise Risk Management: A Common Framework for the Entire Organization, Estados Unidos: Butterworth-Heinemann, 219–230. https://doi.org/10.1016/B978-0-12-800633-7.00016-X

Rodríguez, G. (2020). Una mirada a los orígenes y publicidad de la revista Club Nintendo en México (1991-1999). Americanía: Revista De Estudios Latinoamericanos, (12), 179–212. https://doi.org/10.46661/americania.5325

Ryan, J. (2011). Super Mario: how Nintendo conquered America. Penguin Group.

Subramanian, A., Chai, K. & Mu, S. (2011). Capability reconfiguration of incumbent firms: Nintendo in the video game industry. Technovation, 31(5-6), 228-239. https://doi.org/10.1016/j.technovation.2011.01.003

Susilowati, E., Utomo, S. & Setiawanta, Y. (2017). Blue ocean strategy: An investigation of the effect of business strategy, information accounting management system, mental model implementation on managerial performance. Advanced Science Letters, 23(8), 7239-7242. https://doi.org/10.1166/asl.2017.9340

Tilley, A. (21 de septiembre de 2020). Microsoft to Buy Doom Owner in $7.5 Billion Videogames Deal. THE WALL STREET JOURNAL. Link: https://www.wsj.com/articles/microsoft-to-buy-videogame-maker-zenimax-media-for-7-5-billion-11600697758

Vieira, E. & Ferreira, J. (2018). Strategic framework of fitness clubs based on quality dimensions: the blue ocean strategy approach. Total Quality Management and Business Excellence, 29(13-14), 1648-1667. https://doi.org/10.1080/14783363.2017.129052

Wee, C. (2017). Think Tank—Beyond the Five Forces Model and Blue Ocean Strategy: An Integrative Perspective From Sun Zi Bingfa. Global Business and Organizational Excellence, 36(2), 34-45. https://doi.org/10.1002/joe.21768

Xbox (23 de agosto de 2024). Xbox @ gamescom 2024. [Archivo de video]. Link: https://www.youtube.com/watch?v=RSL8LcqVTug

Yunus, M. & Sijabat, F. (2021). A Review on Blue Ocean Strategy Effect on Competitive Advantage and Firm Performance. Academy of Strategic Management Journal, 20(1), 1-10. Link: https://www.abacademies.org/articles/a-review-on-blue-ocean-strategy-effect-on-competitive-advantage-and-firm-performance-10115.html

Downloads

Published

2025-05-01

How to Cite

Flores Flores, A. J. (2025). Nintendo and the Blue Ocean Strategy: Designing the Four Actions Matrix. Mercados Y Negocios, (55), 83–106. https://doi.org/10.32870/myn.vi55.7813