Nintendo's Supply Chain
Good Afternoon Everyone!
It's me, Kyle, back to talk to you all about video games! So exciting, I know you've all been waiting. Today I want to talk about the Supply Chain of the video gaming world. The Supply Chain is defined as the chain of suppliers that an organization relies on to produce marketing materials. These materials can be print, promotional products, and point of sale. For further discussion, I will talk about pop-up stores, environmental sustainability, vertical and horizontal integration, and inventory systems.
The widely known Nintendo even needs help with their supply chain. The company purchased a 70% stake in Jesnet, one of Japan's largest console distributors in August of 2016. The purchase of Jesnet was supposed to help Nintendo distribute, what was known at the time as "The NX", which is now known as the Nintendo Switch. With that big of a stake purchased, Nintendo has control over its product distribution in Japan.
A Pop-up Store is a temporary shop that sells the latest trends or a seasonal product. Pop-up stores are become a very popular trend among the world of retail. While there wasn't a "pop-up store," there were "pop-up tours" instead. This occurred in the United States put on by Nintendo of America. The pop-up tour was basically a temporary living-room set up where people were able to test out the new console and games that go along with it. The pop-up tour was set for really random places. Prime example would be in the desert at Blue Cloud Movie Ranch in Santa Clarita, CA. Celebrities would also make guest appearances in order to entice people (even though the Nintendo Switch probably would have been enough.)
The next topic is Environmental Sustainability. Is Nintendo an environmentally sustainable company? The answer is yes! Nintendo of America's website says, "Nintendo of America is very concerned with doing our part to help preserve the environment. We are always researching new ways to make our products, operations, and corporate office as environmentally friendly as possible." Nintendo of America par takes in product take back and recycling programs, product repairs and returns, their corporate office in Redmond, Washington was awarded gold status from the U.S. Green Building Council. Product packaging is very often recycled. Transporting and logistics have a 100% of their outbound carriers certified through the EPA Smart Way program.
A horizontal integration consists of companies that acquire a similar company in the same industry, while a vertical integration consists of companies that acquire a company that operates either before or after the acquiring company in the production process. An example of vertical integration would be Nintendo purchasing a 70% stake with Jesnet. Nintendo has vertically integrated its supply chain allowing it to be more efficiently put onto store shelve and an increased profit for Nintendo. An example of horizontal integration would be the widely known game series, The Legend of Zelda. Nintendo owns everything to do with the Legend of Zelda and the company can make profit off of it because no other company is connected to the Legend of Zelda name.
Inventory Systems are designed to help companies maintain knowledge of what they have in their inventory. There are many inventory management systems online that many companies use to keep all of their inventory information. Inventory management software is used for tracking inventory levels, orders, sales and deliveries. Nintendo has a weak spot in its inventory management systems; it just doesn't have a really good system in place. According to online readings.
Until next time!
(Citation for Environmental Sustainability section. N. (n.d.). Corporate Social Responsibility at Nintendo [Web log post]. Retrieved from https://www.nintendo.com/corp/csr/#environment
I don't own any rights to the photo.)
It's me, Kyle, back to talk to you all about video games! So exciting, I know you've all been waiting. Today I want to talk about the Supply Chain of the video gaming world. The Supply Chain is defined as the chain of suppliers that an organization relies on to produce marketing materials. These materials can be print, promotional products, and point of sale. For further discussion, I will talk about pop-up stores, environmental sustainability, vertical and horizontal integration, and inventory systems.
The widely known Nintendo even needs help with their supply chain. The company purchased a 70% stake in Jesnet, one of Japan's largest console distributors in August of 2016. The purchase of Jesnet was supposed to help Nintendo distribute, what was known at the time as "The NX", which is now known as the Nintendo Switch. With that big of a stake purchased, Nintendo has control over its product distribution in Japan.
A Pop-up Store is a temporary shop that sells the latest trends or a seasonal product. Pop-up stores are become a very popular trend among the world of retail. While there wasn't a "pop-up store," there were "pop-up tours" instead. This occurred in the United States put on by Nintendo of America. The pop-up tour was basically a temporary living-room set up where people were able to test out the new console and games that go along with it. The pop-up tour was set for really random places. Prime example would be in the desert at Blue Cloud Movie Ranch in Santa Clarita, CA. Celebrities would also make guest appearances in order to entice people (even though the Nintendo Switch probably would have been enough.)
The next topic is Environmental Sustainability. Is Nintendo an environmentally sustainable company? The answer is yes! Nintendo of America's website says, "Nintendo of America is very concerned with doing our part to help preserve the environment. We are always researching new ways to make our products, operations, and corporate office as environmentally friendly as possible." Nintendo of America par takes in product take back and recycling programs, product repairs and returns, their corporate office in Redmond, Washington was awarded gold status from the U.S. Green Building Council. Product packaging is very often recycled. Transporting and logistics have a 100% of their outbound carriers certified through the EPA Smart Way program.
A horizontal integration consists of companies that acquire a similar company in the same industry, while a vertical integration consists of companies that acquire a company that operates either before or after the acquiring company in the production process. An example of vertical integration would be Nintendo purchasing a 70% stake with Jesnet. Nintendo has vertically integrated its supply chain allowing it to be more efficiently put onto store shelve and an increased profit for Nintendo. An example of horizontal integration would be the widely known game series, The Legend of Zelda. Nintendo owns everything to do with the Legend of Zelda and the company can make profit off of it because no other company is connected to the Legend of Zelda name.
Inventory Systems are designed to help companies maintain knowledge of what they have in their inventory. There are many inventory management systems online that many companies use to keep all of their inventory information. Inventory management software is used for tracking inventory levels, orders, sales and deliveries. Nintendo has a weak spot in its inventory management systems; it just doesn't have a really good system in place. According to online readings.
Until next time!
(Citation for Environmental Sustainability section. N. (n.d.). Corporate Social Responsibility at Nintendo [Web log post]. Retrieved from https://www.nintendo.com/corp/csr/#environment
I don't own any rights to the photo.)
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