Nintendo’s Diversification Strategy – Is It Too Risky?

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Source of image: i.ytimg.com

Xinyue talks about Nintendo’s expansion through diversifying by making “quality of life” products in her blog post. She says that “Nintendo made a strong and solid start”. After reading the news, I think Nintendo introduces a good concept including the five “non”s campaign which provides a clear idea to the potential customers. Nintendo has shown that at least they had done their market research and had plans for investments, as well as some reliable partners such as Resmed. Overall, Nintendo does have a “solid start” and preparations for their Quality of Life to be launched.

However, diversification is still a risky strategy. It means entering a new market. The news states it’s not that Nintendo has no experience at all, but I believe many people are still unsure if product will be successful. After all, Nintendo is still a game company. Its success in game industry has made this impression unshakable in the hearts of customers. I predict that once Quality of Life is launched, most of people who buy it will be Nintendo’s loyal customers just like Xinyue, not the ones who are really interested in life healthy products. It takes time for people to accept a new product from a company that they are not familiar. Anyway, I hope Nintendo’s efforts will make their Quality of Life successful, though it’s going to be a big challenge.

1 thought on “Nintendo’s Diversification Strategy – Is It Too Risky?

  1. Couleur

    Hello Mr. Zhang,

    I am IB student and I am currently conducting a business IA.
    I would like to use your article are source it however, the source is too outdated although your article on Nintendo’s diversification being too risky has an incredible analysis on the company. May I request that your next article be able on a updated 2023 version on their diversification being too risky?

    Thank you very much.

    Reply

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