Strategic Plan Part 1: Proposal of a New Division

Strategic Plan Part 1: Proposal of a New Division

The life cycle of a product can range a short time such as a few months, up too many years if the product is unique, innovative and reliable. All products however have one thing in common and that is the fact that they eventually come to an end of their life cycle as they are replaced by something new that is probably more modern and efficient. Companies are aware of this and with proper planning do the most to market products when they are hot and in demand. This is what leads to maximum profits for the company as well as proper time to plan and develop the next product down the line and keep consistent income to the company. The phases of the product life cycle that must be accounted for include the new product introduction, growth, maturity and decline. In the case if Nintendo, this is a cycle that have repeated time and time again with the release of new video game consoles every 5 to 10 years. This experience the company possesses will help with the creation of a new division as well as roll out of the new product I am proposing they introduce to the market. The success of the new division within the company will depend on how well it not only absorbs current products that fall into a similar category but also new products that will have future release dates. A key to success will be the creation of a vision and mission which follows not only the company’s current goals but also supports its own unique division for maximum profits and success. The new division will need to meet customer needs as well as follow a specific business model to support the products to be sold.

New Product and Division

The product that I propose for Nintendo to launch is similar to the recently released video game console known as the NES Classic. This current video game system was released in 2016 and was released just this month due to its initial demand and success. When it was released in 2016 it was in such high demand that it h had its price raised by resellers to a cost of over 300% above retail cost. Based on this, the new system I propose for them to release can be expected to have the same success. With this information, the goal is to get the product to market right before the holiday season and to produce enough products to actually meet consumer demand. With this information I propose to first introduce the product 6 months prior to release. This time frame will allow Nintendo to generate interest in the product while not having a gap in time between announcement and release that dissuades potential buyers due to lack of interest. I expect the product to have a growth cycle of roughly 2 years based on the products hardware and software release schedule. By the third year, the product will have saturated the market and begin to decline as the nostalgia will have worn off, by which time the next product will be ready for release. Sales will be the final metric of success for this product. The Division that will be created with in the company will be the Nintendo Retro Division, focusing on the re-release of miniature versions of the video game consoles that caused the company to be known for what it is known for today, a leader in Video Game entertainment. The specific product to be released will be a miniature version of the highly successful Nintendo 64 console. The goal is to have the new division bring together all the previous released miniature consoles including the NES and NES Classic along with the future N64 Classic.

Meeting Customer Needs

In order to meet customer needs and achieve a competitive advantage, Retro Division will focus on different forms of media to advertise the product. The media method used first will be print method of signs and advertisements at major retailers who will be offering pre order processes and capabilities for the new product line. This method will both drive sales for each retailer as well as get employees to talk the product up and attempt to sell it and promote the business. This tactic is often used at current video game retailers such as GameStop. The second marketing media method will be a video initially released at one of the largest video game conventions that occur every year in Los Angeles California, known as the Electronic Entertainment Expo (E3). According to “E3 Expo” (2016), “E3 2017 is where it all starts. The must-attend event where the future of video games is debuted, showcased and experienced.” (para. 1). Nintendo conducts an event at E3 every year along with competitors such as Microsoft and Sony. This represents the ideal time to both demonstrate and explain the new product as well as allows users to share the video demonstration amongst all the popular social media sites and will generate tons of buzz on the product as well as get people really talking about it and excited for it. Nintendo has a long history of success at E3 as according to IGN, “Nintendo’s first appearance at E3 was in E3 1995, which was also the first E3. Nintendo has participated in every subsequent E3, and announced several consoles, including the Wii and the Wii U in pre-E3 press conferences.” (“Nintendo at E3”, 2016). While announcing the product at E3, Nintendo and also remind customers of the companies continued vision as well as introduce the new division within the company and explain the need for the division and what its focus and business model will be.

Vision and Business Model

The Vision of the Nintendo Retro Division is simple, to deliver quality products that deliver fun and nostalgia to its wide consumer database. The business model for the division will be comparable to all other divisions of the company. The focus will be on bringing to market newer versions of previous products which generate tons of profit and currently are in high demand. The business model will focus on three specific areas for the Nintendo Retro Division. They will be the Consumer, the Development and Production Process and the Delivery Process. The Consumer wants and needs are taken into consideration when developing consoles as the games included must be ones that appeal to the customers wants and needs. Development and Production, though not a new process for Nintendo, are key in ensuring supply meets demand at the point of equilibrium to ensure retailers and consumers are happy with the company and its products. The Delivery process is the final focus as this product needs to be distributed worldwide and should be delivered with in timelines the company sets forth to capitalize on the hype built up from the pre introduction of the product.

Vision and Business Alignment with Company Vision

Nintendo has a mission statement that begins with “Nintendo strives for equality in the workplace and in the gaming market. It focuses on presenting products to consumers, then listening to their feedback to make improvements.” (“Reference”, 2016). They are a company who strives to walk their own path while providing customers with products they will want. Part of this includes producing products that are reliable and fun. Nintendo has always been aware that quality is one of the major components of success. This approach along with the ability to launch the new product using software that they own exclusive rights too, allows for them to enter the market with little to no direct competition. The Nintendo Retro Division will line up with the company’s current vision and mission statement as it will utilize the feedback it has received on both the satisfaction with the NES Classic system as well as the customer feedback of its inability to supply enough products to meet the demand of the consumer.



The benefit of producing a product by a well-known and established company like Nintendo is that the formula for product launch and advertising has been previously written. From both the initial announcements and introductions through each products complete life cycle, the basics of what needs to occur are relatively simple to follow. This makes creating a new division within the company focused on these types of products a virtual no brainer. Then by aligning the Vision and Mission for the Nintendo Retro Division with current company values and goals, the branches of the business model will run effectively and smoothly as the company rolls out product after product in this new gaming line.

References E3 Expo. (2016). Retrieved from Nintendo at E3. (2016). Retrieved from

Reference. (2016). Retrieved from


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