VRIO Framework

Case Analysis

VRIO stands for – Valuable, Rare, Imitation costly, Organized to Capture Value,

The VRIO Framework helps the Strategy Consultant and Managers to analyze and understand company’s alocation and importance of its resources and capabilities.

 The VRIO Framework in Games Console.

  1. Watch the video “How the inventor of Mario designs a game.”
  2. Search the Internet for information about video game consoles, Sony’s PlayStation 3, Microsoft’s Xbox One, and Nintendo’s Wii.
  3. Using the VRIO Framework (found in the VRIO Framework lecture), develop an analysis of Nintendo’s resources, capabilities, and competencies. Use the Excel template – Tool 6 file available in Blackboard to build your Analysis.
  4. Based on your VRIO Analysis, discuss how Nintendo could deploy the current and prospects’ resources and capabilities to create a competitive advantage. Also, discuss how Nintendo will be able to sustain its competitive advantage.
  5. Cite the sources (data) used to develop the Analysis.
  6. Use the data sources provided.

Tool 6

Develop a VRIO analysis of your Client’s Business. Provide data and data sources on your Analysis. Keep in mind that the VRIO analysis will change as you improve your Client’s business knowledge. Cite the sources (data) used to develop the Analysis.

State your recommendations to your Client. Use the evidence from your VRIO Analysis to support your recommendations.

Provide a detailed analysis.

Remember to look for evidence; quantitative and qualitative data to run your Analysis. The data comes from the Internet sources such as specialized Business News Media Outlets, and your Client’s Company Annual Reports found at the SEC website. Also, remember to cite all your sources, including the textbook. Submit all of your cited sources in pdf file format by printing the webpage as pdf file. Follow APA Guidelines for in-text citation format and references.Feel free to use the possible sources for data mining available in Blackboard>SCR>Sources of Data.

The following are sources of data to help you to develop Nintendo’s VRIO Analysis:

    • Campbell, Colin. Nintendo Refuses to layoff. http://www.polygon.com/2013/7/5/4496512/why-nintendos-satoru-iwata-refuses-to- lay-off-staff
    • Gera, Emily. Nintendo boss Satoru Iwata will cut pay in half after poor fiscal results. http://www.polygon.com/2014/1/29/5356812/nintendo-boss-satoru-iwata-will-cut- pay-in-half-after-poor-fiscal
    • Amano, Takashi. Nintendo Completes Buyback as Founding Family Sells Stock – Source for Money amount. http://www.bloomberg.com/news/2014-02-04/nintendo- completes-buyback-as-founding-family-to-sell-shares.htm.
    • Bleeker, Eric.       Nintendo could be the next Netflix. http://www.fool.com/investing/general/2014/01/16/nintendo-could-be-the-next- Netflix.aspx.
    • Chiappini, Dan. Ian Livingstone: Nintendo must bring its games to other platforms – Report. http://www.gamespot.com/articles/ian-livingstone-nintendo-must-bring-its- games-to-other-platforms-report/1100-6409343/.
    • Crumble, Gavin. Why Is The Wii U A Failure? http://www.forbes.com/sites/quora/2014/02/05/why-is-the-wii-u-a-failure/. Accessed on 04-12-2014.
    • Edwards, Cliff, and Amano, Takashi. Is It Game Over for Video Game Consoles? http://www.businessweek.com/articles/2013-11-14/2014-outlook-video-game- consoles-game-over-or-new-era. Accessed on 05-12-2014.
    • Gantayat, Anoop. Dragon Quest IX Q&A. http://www.ign.com/articles/2006/12/12/dragon-quest-ix-qa.
    • Grundberg, Sven, and Hansegard, Jens. Women Now Make Up Almost Half of Gamers. http://online.wsj.com/articles/gaming-no-longer-a-mans-world-1408464249. Accessed on 05-12-2014.
    • Gifford, Kevin. Why did the Dreamcast fail? Sega’s marketing veteran looks behind http://www.polygon.com/2013/8/7/4599588/why-did-the-dreamcast-fail-segas- marketing-veteran-looks-back&prev=search
    • Harding, Robin. Nintendo makes more profit per employee than Goldman. http://www.ft.com/cms/s/0/9d9624a4-8341-11dd-907e- 000077b07658.html#axzz3GyZ0cEfc.
    • Inagaki, Kana. Nintendo Vows to Return to Profit. http://online.wsj.com/articles/SB10001424052702304831304579546891141746308. 05-12-2014.
    • Klain, Erik. How Do You Solve A Problem Like The Wii U? http://www.forbes.com/sites/erikkain/2013/12/06/how-do-you-solve-a-problem-like- the-Wii-u/.
    • Kohler, Chris. No, Wii U’s Problem Was Never Its Dumb Name. http://www.wired.com/2014/08/wii-u-name/. Accessed on 02-12-2014.
    • Kohler, Chris. What the Hell Is Wrong With Nintendo? http://www.wired.com/2013/12/wii-u-sales/.
    • Loftus, Tom. Top Video Game may soon cost more. http://www.nbcnews.com/id/3078404/ns/technology_and_science-games/t/top-video- games-may-soon-cost-more/#.VHyLtzHF-VM.
    • Makuch, Eddie. Nintendo explains why Mario won’t come to smartphones. http://www.gamespot.com/articles/nintendo-explains-why-mario-wont-come-to- smartphones/1100-6410004/.
    • Neal, Ryal W. Nintendo Ends Wii Production: Revolutionary Console Sold 100 Million Units In Seven Years. http://www.ibtimes.com/nintendo-ends-wii-production- revolutionary-console-sold-100-million-units-seven-years-1434808.
    • Negishi, Mayumi. Nintendo’s Financial Difficulties Worsen. http://online.wsj.com/articles/nintendo-swings-to-net-loss-1406706326.
    • Olson, Palmy. Iwata’s Nintendo lampooned for “Wii.” http://www.forbes.com/2006/04/28/nintendo-wii-console- cx_po_0428autofacescan08.html.
    • Parkin, Simon. Gamergate: A Scandal Erupts in the Video-Game Community. http://www.newyorker.com/tech/elements/gamergate-scandal-erupts-video-game- community.
    • Parr, Ben. What      Nintendo needs to do to make a comeback. http://www.cnet.com/news/what-nintendo-needs-to-do-to-make-a-comeback/.
    • Plafke, James. Nintendo outlines new company direction, but it won’t save the sinking ship. http://www.extremetech.com/gaming/175731-nintendo-outlines-new-company- direction-but-it-wont-save-the-sinking-ship.
    • Prasuethsut, Lily. Nintendo plans to recover its sinking ship with ‘health platform.’ http://www.techradar.com/news/gaming/nintendo-plans-to-recover-its-sinking-ship- with-health-platform–1220727.
    • Reisinger, Don. Nintendo set to launch the first app, but don’t expect to game. http://www.cnet.com/news/nintendo-set-to-launch-first-app-but-dont-expect-gaming/.
    • Schmidt, Gregory. To Energize Sales, Nintendo Introduces Toys That Roam Virtual Realm. http://www.nytimes.com/2014/11/22/technology/nintendo-tries-to-energize- Wii-u-sales-with-amiibo-toys.html?_r=0.
    • Snider, Mike. Nintendo strategy mixes new twists and classic ties-in. http://www.usatoday.com/story/tech/gaming/2014/06/10/nintendo-e3- highlights/10222253/.
    • Stuart, Keith. Nintendo is back: why summer 2014 belongs to the Wii U. http://www.theguardian.com/technology/2014/jul/24/nintendo-wii-u-mario-kart-8. Accessed on 04-12-2014.
    • Stuart, Keith. Grand Theft Auto 5 banned by Australian chain due to violence against women. http://www.theguardian.com/technology/2014/dec/03/australian-store-bans- grand-theft-auto-5-violence-against-women
    • Suciu, Peter. Is it game over for Nintendo? http://fortune.com/2014/02/11/is-it-game- over-for-Nintendo/.
    • Tassi, Paul. It May Is Time For Nintendo To Make Games, Not Consoles. http://www.forbes.com/sites/insertcoin/2013/12/10/it-may-be-time-for-nintendo-to- make-games-not-consoles/.
    • Thier, Dave. Nintendo Has A Better Idea Than  Microsoft For  China. http://www.forbes.com/sites/davidthier/2014/05/08/nintendo-has-a-better-idea-than- Microsoft-for-china/. Accessed on 05-12-2014.
    • Tweedie, Steven. Microsoft Plans A Virtual Reality Headset For Xbox One To Compete With The Oculus Rift. http://www.businessinsider.com/xbox-one-virtual- reality-headset-will-compete-with-oculus-rift-2014-12
    • White, Marta C. Game Over? Video Game Console Sales are Plummeting. http://business.time.com/2013/02/11/game-over-why-video-game-console-sales-are- plummeting/.

Websites to collect qualitative and quantitative data on your Client (XERO LIMITED) and Nintendo:

    • http://www.bloomberg.com/quote/7974:JP .
    • http://www.bloomberg.com/quote/NTDOY:US.
    • http://www.bloomberg.com/news/2014-10-29/nintendo-earnings-beat-estimates-on- super-smash-bros-yen.html.
    • http://investing.businessweek.com/research/stocks/financials/financials.asp?ticker=79 74:JP.
    • http://www.fastcompany.com/3034581/hit-the-ground-running/25-years-after-the- console-wars-what-we-can-learn-from-segas-battle-w.
    • http://www.forbes.com/companies/nintendo/.
    • http://www.gartner.com/newsroom/id/2614915.
    • http://www.pong-story.com/odyssey.htm#P8.
    • http://www.newzoo.com/infographics/global-games-market-report-infographics/.
    • http://www.n-sider.com/contentview.php?contentid=319.
    • http://www.paristechreview.com/2012/03/13/video-games-real-economic-wars/.
    • http://www.pwc.com/gx/en/global-entertainment-media-outlook/.
    • http://www.ralphbaer.com/how_video_games.htm.
    • http://www.statista.com/statistics/216629/nintendo-sales-by-product/.
    • http://www.statista.com/statistics/276768/global-unit-sales-of-video-game-consoles/.
    • http://www.statista.com/statistics/268966/total-number-of-game-consoles-sold- worldwide-by-console-type/.
    • http://www.economist.com/blogs/graphicdetail/2013/11/daily-chart-11.
    • http://blogs.wsj.com/digits/2014/01/29/live-nintendos-strategy-briefing-to-address- future-direction/.

http://www.livescience.com/10022-military-video-games.html

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