Part A Qualitative Analysis

Case 2: Nintendo

Nintendo Co., Ltd is a Japanese multinational consumer electronics and video game company headquartered in Kyoto. Nintendo distributed its first video game console, the Color TV-Game, in 1977. It gained international recognition with the release of Donkey Kong in 1981 and the Nintendo Entertainment System and Super Mario Bros. in 1985.

Since then, Nintendo has produced some of the most successful consoles in the video game industry, such as the Game Boy, the Super Nintendo Entertainment System, the Nintendo DS, the Wii, and the Nintendo Switch.

It has created numerous major franchises, including Mario, Donkey Kong, The Legend of Zelda, Pokémon, Kirby, Metroid, Fire Emblem, Animal Crossing, Splatoon, Star Fox, Xenoblade Chronicles, and Super Smash Bros.

However, not all of Nintendo products are successful. The Wii U caused huge financial losses. This was partly due to the success of its competitors. Sony’s strategy to release its video games to other platforms such as smart TVs is one major factor.

Case is adapted and compiled from various internet sources.
i. Explain why demand forecasting is a critical function of any business, regardless of the stage of the supply chain the company is operating in or the types (push and pull) of supply chain it is practicing.

ii. Based on the information provided in the Nintendo case, evaluate the following qualitative forecasting methods. With reference to your evaluation, suggest and support with justifications, the most appropriate method that Nintendo should use to decide on the demand of the design for the next “big” game device.
• Delphi method
• Survey of sales force
• Historical analogy