1) Does it appear that Nintendo relies more heavily on offensive or defensive strategies as it competes in the video game industry?

Has Nintendos timing of strategic moves made it an early mover or a fast follower? Could Nintendos introduction of the Wii be characterized as a blue ocean strategy? You may rely on your knowledge of the video game industry and information provided at Nintendos investor relations website (www.nintendo.com) to provide justifications for your answers to these questions. Nintendo Co., Ltd. is a Japanese multinational consumer electronics company that is mainly engaged in the development, manufacture and sale of entertainment products in home entertainment field. The firm became a famous video console company since its inception in the early 1980s. However, starting from the late 90s, Nintendo lost its dominance because of its stiff competition with other companies particularly of Microsoft Corporation, Sony Corporation and of Activision Blizzard, Inc. Based on my research, as the firm competes in the video game industry, Nintendo relies more heavily on offensive strategies. This is particularly proven by the company when it implemented an aggressive marketing plan revolving in the message We would like to play. Its timing of strategic moves, on the other hand, made it a fast follower. The video game industry went from boom to bust to boom business. It was Nintendo that rekindled the interest and restored market order. Nintendos introduction of the Wii could be characterized as a blue ocean strategy.A blue ocean strategy is a business strategy that suggests that an organization should be able to create a new demand in an uncontested market space. Nintendo shows that it is competing on a different level with both Sony and Microsoft with the introduction of Wii. Aside from being cheap, Wii has no hard disk, no DVD, no Dolby 5.1, weak connectivity, and lower processor speedbut it has an innovative motion stick that can blow your mind away.

2) American Apparel, known for its hip line of basic garments and its provocative advertisements, is no stranger to the concept of doing it all. Concept & Connections 6.2 on page 126 describes how American Apparel has made vertical integration a central part of its strategy. What value chain segments has American Apparel chosen to enter and perform internally? How has vertical integration aided the company in building competitive advantage? Has vertical integration strengthened its market position? Explain why or why not? American Apparel is a vertically integrated industrial company. It is a clothing manufacturer, wholesaler, and retailer performing its own design, advertising, and marketing. Vertical integration is the degree to which a firm owns its upstream suppliers and its downstream buyers with the goal of increasing the companys power in the marketplace. Of the three varieties of vertical integration (backward, forward and balanced), American Apparel is a balanced vertically integrated company. The value chain segments that the firm has chosen to enter and perform internally includes inbound logistics, operations, outbound logistics, marketing and sales, and service for its primary activities. For the support activities, they entered and perform internally in the procurement, technology development, human resource management and firm infrastructure. This just means that American Apparel has all the control related to its existence especially considering the fact that it is a balanced vertically integrated company. Being a balanced vertically integrated company allows American Apparel to design, cut, distribute and sell an item globally in a span on just a week. For the company, vertical integration is made in USA/jobs, sustainability, corporate responsibility and political activism. In terms of building competitive advantage, the company works for sustainability and corporate responsibility. According to the official website of the American Apparel, Vertical integrati on reduces our footprint by concentrating our manufacturing operations to a small circle of

buildings in Southern California that means were not needlessly shipping supplies all over the world. That is because being virtually integrated allowed the firm to save time, money and unnecessary fuel expenditure. It also allowed them to collaborate with their more than five thousand employees. For their corporate responsibility, American Apparel has environmental initiatives as shown by their recycling, innovative and creative reusing, efficiency in energy and water, transporting and many more. They also created organic products which cover the products organic style, dyeing standards and others. Because of these things, vertical integration has definitely strengthened American Apparels market position. 3) Perform an internet search to identify at least two companies in different industries that have entered into outsourcing agreements with firms with specialized services. In addition, describe what value chain activities the companies have chosen to outsource. Do any of these outsourcing agreements seem likely to threaten any of the companies competitive capabilities? First of all, let us define what outsourcing means. By saying outsourcing, it means a strategy wherein a company contracts with an outside provider or independent contractor for services or other business processes rather than employing staff to do these services in-house. One example of companies that have entered into outsourcing agreements with firms with specialized services is Intercall to Vodafone Ireland. Intercall is a communications outsourcing Specialist Company and by entering into a partnership with Vodafone Ireland, fifteen jobs are created. Vodafone awarded Intercall Gold Partner certification which enabled the latter to sell the entire Vodafone portfolio. In here, the value chain segment affected is the human resources management. On the other hand, another company entering in an outsourcing agreement but affects the technology department is McDonalds. The fast-food giant extended its six-year deal with

Xerox-owned Affiliated Computer Services (ACS). This deal will continually provide a wide range of services which includes desktop support and engineering, networking operations and engineering, and the mainframe server support of McDonalds. In addition to that, Chris Millington, McDonalds CTO, said that sourcing is a core strategy for the IT department. Both outsourcing agreements do not seem to likely threaten any of the companies competitive capabilities simply because if it could, both companies will not probably enter the said respective agreements. Furthermore, Intercall had a 25% increase in sales year on year and an increase in turnover of 500,000 per annum and McDonalds extended the existing deal which means that both benefited from the deal that they made. 4) Using your university librarys subscription to Lexis-Nexis, EBSCO, or a similar database, find two examples of how companies have relied on strategic alliances or joint ventures to substitute for horizontal or vertical integration. Strategic Alliances takes place when two or more businesses join together for a set period of time. The part of the alliance has similar products that are directed toward the same target audience but are not in direct competition. One example of such strategic alliance is the partnership between TraveLinx, Canada and ICit America. TraveLinx Inc. is a leader in tourism related technology such as the internet technology and database information management solutions. ICit America, on the other hand, specializes on custom hardware, software and target services design developed exclusively for the needs of the hospitality industry. In this partnership, the companies entered into a cross-marketing and supplier agreement to deliver TraveLinx travel and tourism content to installations in hospitality and retail locations. TraveLinxalso deploys TeleCenter solutions (ICit Americas core product) in tetail locations where design marketing and transactions are complimentary to retailers products and customers.

Another example is the alliance formed by Chrysler Group LLC, an American automaker and Fiat Group, an Italian automobile manufacturer. Fiat will be contributing to Chrysler worldclass technology, platforms and powertrains for small-and-medium-sized cars which will allow Chrysler to create an expanded product line that includes environmentally friendly vehicles.

Reference

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4)Using your university librarys subscription to Lexis-Nexis, EBSCO, or a similar database, find two examples of how companies have relied on strategic alliances or joint ventures to substitute for horizontal or vertical integration.

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http://www.theoutsourceblog.com/2012/02/outsourcing-firm-in-vodafone-deal/ Mcdonalds commits to outsourcing for 11 years. (2010, January 27). Retrieved from http://www.computerweekly.com/news/1280091962/McDonalds-commits-to-outsourcing-for-11years http://mindyourown-business.blogspot.com/2009/05/nintendo-wii-porters-three-generic.html http://www.scribd.com/doc/92627812/Nintendo-Strategic-Management-Plan http://www.scribd.com/doc/21376284/Video-Games-Industry-Final http://www.myownbusiness.org/vertical_integration/

http://www.americanapparel.net