Sample Business Studies Paper on Nintendo and Bandai Namco – A Comparative Analysis

Introduction

Nintendo is a multinational company that deals in the development of video games and consumer electronics. The company is headquartered in Kyoto, Japan. Nintendo is among the best known and most successful companies in the video game industry. The company’s most popular video game franchises include Mario, The Legend of Zelda, and Pokémon, among others.  With a history going back as far as the Nineteenth Century, Nintendo has undergone multiple evolutionary changes before cementing its place in the video game industry in the Twentieth Century. Bandai Namco, on the other hand, is a Japanese multinational video game developer with headquarters in Minato-Ku, Tokyo. Despite having been established in 2006, Bandai Namco quickly cemented its place in the industry by publishing renowned video game titles including Tekken, Pac-Man, and Ace Combat, among others. In this discussion, the profiles of the two companies will be compared. Some of the factors that will guide this comparative analysis include: history, revenues, and corporate philosophy.

Nintendo Co., Ltd. was founded in 1889, trying multiple ventures before eventually starting to develop video games and consoles in the 1970s (Sheff, 2011). The company would eventually achieve international breakthrough with the production of the Gameboy series. Since, the company has earned a reputation as one of the key manufacturers of handheld consoles, outdoing Sony Computer Entertainment, which has settled for home consoles (Sheff, 2011). Bandai Namco, on the other hand, was established in 2006 in a partnership between Namco and Bandai. The success of this corporation, relative to the long-established brands like Nintendo and Microsoft can be credited to the company’s intensive investment in already-popular titles, as well as, the ownership of patents to popular Japanese anime series, such as Dragon Ball, Naruto, and Sailor Moon (Lamb et al., 2013).

Based on 2015 statistics, Nintendo had revenues of 3.92 billion globally, ranking 4th behind Sony Computer Entertainment of Japan, Tencent of China, and Microsoft of the U.S.A. In the same year, Bandai Namco had revenues of 2.05 billion Euros, ranking 7th globally (Statista, 2016). Over the years, Nintendo has released a wide range of consoles and handheld devices. In the period between 1977 and 2017, the company has developed a series of successful game titles, including Tetris, Super Mario, and Donkey Kong Country (Sheff, 2011). It has also manufactured and sold a number of successful consoles, including Wii, Game Boy, Super Nintendo Entertainment System, and Nintendo Switch. Although diversifying has benefited Nintendo, helping it to maximize sales, the stiff competition in the console market has occasionally undermined the company’s performance in the market. For instance, in spite of the astounding popularity of the Wii, its successor, the Wii U performed so poorly in the market the company had to quickly develop the Nintendo Switch to recover market share. On the contrary, Bandai Namco focuses on the development of video games but does not manufacture consoles (Lamb et al., 2013). Thus, unlike Nintendo, Bandai Namco has a single platform to compete with established entertainment companies like Microsoft and Sony Entertainment, both of which develop consoles as well as publishing video games.

According to the Bandai Namco website, the corporate philosophy of the company serves as the basis for decision-making processes and as a key source of motivation for employees. The company’s mission is simple and straightforward – “Dreams, Fun, Inspiration” (BANDAI NAMCO Holdings Inc., 2019). The company claims that these three aspects make up the ‘engine of happiness’. The company promises to use its creative vision and enthusiasm to continue fueling people’s happiness around the world. The company has a vision to be the leading innovator in the global entertainment industry (BANDAI NAMCO Holdings Inc., 2019). It is easy to see how such a straightforward corporate philosophy powers Bandai Namco into innovativeness and, in turn, to global success in the entertainment industry.

Nintendo’s corporate philosophy takes a different stance. The company states its commitment to producing and marketing the best possible range of products and services (Nintendo, 2019). The company’s websites highlights the company’s intention to treat every customer with utmost regard, attention, and consideration. The company suggests that it can only improve its products by continually heeding to the feedback provided by customers (Nintendo, 2019). Similarly, the company indicates its promise to keep its employees satisfied. The company highlights that, by upholding high standards of commitment and enthusiasm among employees, it is possible to get employees to work together with a shared purpose of producing high quality products and providing quality services.

Conclusion

Both Nintendo and Bandai Namco have succeeded at gaining a foothold of the video game industry by continually meeting expectations of customers with high quality products. Nintendo has benefited from a rich history through which it has been able to evolve its product range to the taste of its clientele. The company also benefits from diversification, thus keeping up with established brands in the industry, such as Sony Computers Entertainment and Microsoft. Bandai Namco, on the other hand, benefits from patenting some of the most sought after video games and anime series. Despite having a comparatively briefer history, the Bandai Namco’s narrowed focus and aggression in the industry has helped the company to ward off competitors and become one of the most successful companies in the entertainment industry. Both companies’ corporate philosophies reflect the key aspects that has facilitated their successes.

References

BANDAI NAMCO Holdings Inc. (2019). About Company. Available at: https://www.bandainamco.co.jp/en/about/index.html

Lamb, C. W., Hair, J. F., & McDaniel, C. (2013). Marketing. Mason, OH: South-Western/Cengage Learning.

Nintendo. (2019). Corporate. Available at: https://www.nintendo.com/corp/mission.jsp

Sheff, D. (2011). Game over: How Nintendo conquered the world. Vintage.

Statista. (2016). Revenue of the largest computer and video game publishers worldwide in 2015 https://www.statista.com/statistics/273838/revenue-of-the-largest-video-game-publishers-worldwide/#