Nintendo in a blue ocean
Posted: April 22nd, 2015, 8:44 am
In reading about Nintendo, you might come across the term 'Blue Ocean'. I decided to peruse the book the term comes from, the book Blue Ocean, written about 10 years ago.
In general, most markets are red, with lots of competition competing for the same pool of customers. You survive in a red ocean being better than a competitor in some way. A blue ocean is a market with a new product bringing in new customers, and making the competition less relevant. You survive in a blue ocean by being radically different. You can see how this can apply to Nintendo, with products like the Wii bringing in new customers or focus on 1st party games for a dedicated fan base. However, even a successful blue ocean product may not be viable for very long. Many fads would seem to be blue oceans that dry up, like gourmet cupcakes.
Nintendo going mobile is a foray into a very red market, but they are continuing all their other activities too. Its an interesting path.
In general, most markets are red, with lots of competition competing for the same pool of customers. You survive in a red ocean being better than a competitor in some way. A blue ocean is a market with a new product bringing in new customers, and making the competition less relevant. You survive in a blue ocean by being radically different. You can see how this can apply to Nintendo, with products like the Wii bringing in new customers or focus on 1st party games for a dedicated fan base. However, even a successful blue ocean product may not be viable for very long. Many fads would seem to be blue oceans that dry up, like gourmet cupcakes.
Nintendo going mobile is a foray into a very red market, but they are continuing all their other activities too. Its an interesting path.