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In 1975, Nintendo had decided to move into the video arcade industry. That gained them with the First Mover advantage, with "EVR Race." Although Nintendo achieved some success for the venture, they continued their research and development.

in 1981, Nintendo released "Donkey Kong." Which had changed the company's fortunes dramatically. The success of the game and other licensing opportunities gave Nintendo a boost in their profit margins that contributed to their continous innovative strategies.

From the year 1983 & 1998 onwards, Nintendo began to dominate the economy worldwide. As they founded "Super Mario Bros" & "Pokémon."Their market segment had sky rocketed with this innovation. It was available on many gaming consoles that were manufactured in the later years such as "Game & Watch","NES","Gameboy" and "Gameboy Advance SP."

Therefore, Nintendo has gained competitive advantage over its major competitors like Microsoft
(X-Box) & Sony (Play Station) due to its Lower Cost Of Production. Nintendo makes it's gaming console cheaper to manufacture than its competitors which allows them to maximise their profits, while their competitors struggle to subsidise the retail price of their product. This way, Nintendo is given more room to manoeuvre when it comes to using the price mechanism to battle it's competitors.

Nintendo games are easier to develop than the Play Station or X-Box. These short games have become a huge part of each child who purchases the game. Bringing sentimental value to the product. However, with a development in technology Nintendo found the opportunity to create to create the "Wii" which is a motion censored console. It competed against the Ps3 and X-Box 360 but Nintendo had targeted a larger demographic than the other two, which contributed to the high volume of sales. It takes less time for Nintendo to carry out research & development due to its vast availabilty of game designers who are able to modify and design games in a shorter period of time as compared to Sony and Microsoft.

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Nintendo,The video game company that everyone knows today, bringing constant innovation into the market and being one of the major influencers on the video game market.
Stock price: 7974 (TYO) JP¥ 36,450 -50.00 (-0.14%)
30 Aug, 3:00 PM GMT+9 - Disclaimer

Founder: Fusajiro Yamauchi

Founded: 23 September 1889, Kyoto, Kyoto Prefecture, Japan

CEO: Tatsumi Kimishima(16 Sep 2015–)

Headquarters: Kyoto, Kyoto Prefecture, Japan

Revenue: 504.5 billion JPY (2016)
Present Flagship: Nintendo Switch

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Nintendo started as a card company founded by Fusajiro Yamauchi on 23rd September 1889 based in Kyoto.the cards soon became very famous and to meet the increasing demand Yamauchi had to hire assistance for mass production.
In 1956 Hiroshi Yamauchi grandson of Fusajiro Yamauchi visited United States to talk to United States Playing Card Company the dominant playing card company in The United States. He came to realise that this business has very low potential this is when he acquired the license to print Disney characters on the cards.In 1963 The Nintendo Card Playing Co. was renamed as Nintendo Co. Ltd. by Yamauchi.Nintendo first ventured into video gaming industry by securing the rights to distribute the Magnavox odyssey video game console in Japan in 1974.Nintendo moved into the video arcade game industry with EVR Race in 1975.In 1979 an idea of handheld video game was conceived by Gunpei Yokoi.In 1980 Nintendo launched GAME AND WATCH-a handheld video game series.Nintendo launched family computer(famicome) home in 1983.Gunpei Yokoi and his team at Nintendo R&D1 conceived the Gameboy handheld system with the purpose of merging game and watch portability in 1988.The Super Nintendo entertainment system was released in 1991 and featured 16-bit technology.The N-64 SET Standards in realistic 3D gaming when it came out in 1996.The same year N-64 came out game boy found its way into the school backpacks all over the world.Featuring a larger screen and better graphics than the previous version of the gameboy, the GBA would go on to sell tens of million units worldwide after its North American debut in 2001.This same very year saw the realise of Nintendo gameboy cube.In 2006 Nintendo launched WII and with its several advanced revolutionary features. wireless motion sensitive remote controller, built in wifi capability, and a host of other features have made the WII the best selling latest generation console system in world.

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Nintendo Being a multinational company operates with many chains of command.
Below the command, location and reason for the location is listed.

Manufacturing:
China>Even though Nintendo being a Japanese company its major production takes place in china because of the cheap labour and the similar cultures Japan and China share.
Research and Development:
Paris/Tokyo>The reasonNintendo has their R & D set up in 2 different sides of the planet is simply to record the different behaviour of people living and drastically different cultures.Another reason they have a R & D department in Paris is because they have tie ups with many big companies such as Fisher-Price and MobiClip which are located in Europe.
Nintendo Network Service Database:
Japan>Nintendo's servers and database is located in their home country simply becasuse of convenience as their main headquarters is located in Kyoto,Japan.Thus,it is easily accessible.
Software Technology:
Washington,USA:
The reason Nintendo has placed its software department is the United States because in The States the labour required which is software engineers are very well specialised and intensively trained having the best software engineers in the world.

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In 1889, Fusajiro Yamauchi founded Nintendo Koppai, which means “leave luck to heaven”. At this stage, Nintendo was fully devoted to the production and distribution of the colorful-hand-made hanafudadecks (SLOAN, 2011, 2). Due to its remarkable artwork, Fusajiro’s cards outsold its rivals and eventually became very popular among the landed elite, students, laborers and especially in the gambling circles. With the introduction of mass production, Nintendo quickly became a medium-sized company, eager to test new horizons beyond Kyoto’s boundaries (SHEFF, 1999, 15).
FIRST INTERNATIONALIZATION
Once entrenched in the Japanese market, Nintendo was ready to go abroad. Its first move was the signature of a licensing agreement with Walt Disney in 1959. The landmark deal, allowed Nintendo to stamp Walt Disney’s animated characters, like Mickey Mouse, on the playing cards and to sell them either in Japan or in the USA. As a result, Nintendo’s engrossed its pockets by selling the astronomic number of 600,000 decks per year.
THE OUTCOME OF INTERNATIONALIZATION
During the 1980, Toyota and Honda were the number-one corporations in Japan due to its stock market, money per employee and overall profits. But by 1989 Nintendo topped the list, becoming the most successful Japanese company. As a product of its internationalization, between 1988 and 1992 Nintendo paid to its stakeholders higher dividends that any other Japanese company. By 1992, Nintendo’s worldwide sales of cartridges ascended to 170 million, bringing to the company almost $7 billion dollars. Soon, Nintendo surpassed American Goliath-size corporations such as IBM, Disney and Apple Computer.
CONCLUSION
When expanding to Europe, Nintendo had to face the challenges of a more sophisticated competition and a not very efficient distribution system. Nonetheless, the company was able to success by focusing on creating a broad base of gamers before releasing its SNES and by opening “Nintendo of Europe”, which would direct Nintendo’s exclusive distributors in that continent.