Nintendo’s Wii: Do Your Customers Really Know What They Want?
When Satoru Iwata started as a CEO for Nintendo Co. when the market share of Nintendo in the gaming industry was decreasing. Iwata realized that trying to directly compete with Sony’s PlayStation would be extremely hard. Therefore, Iwana wanted to increase the pie instead of gaining a larger piece of the same pie.
Many CEOs would look at their current customer base to see what they would be missing. However many customers do not actually know what they are missing; since their view becomes very narrowed. Therefore, Iwata looked and asked the participation of people that were not the current customers. Hence, increasing the size of the pie instead of a piece of the pie.
By talking with people that were not currently gamers, Nintento discovered what kept other people from gaming. One of these was the difficulty of the games as well as the controllers that were used to play the game. The consolers of the PlayStation or X-box gave customers that were not real gamers and uncomfortable feeling.
Hence, Iwata discovered that people wanted to play games in an easy sense of playing the game. Therefore, they created the Nintendo Wii that was a wireless consoler. This created a disruptive product; thus it was something that had otherwise not been created. Through the creation of the Wii, the contribution of Nintendo to the gaming world increased dramatically. The Wii gained a whole new demographic that started gaming.
Therefore, the question of interest is whether customers really know what they want? And whether it should be the customers that the company looks for to create new ideas. As with the Nintendo Wii, it was the way that Iwata looked at the customers he did not have, but the customers he could gain. This interesting case study made me think about the innovations of information strategy but also the way of analysing the currently market in which specific customers operate. Sometimes its not about the piece of the pie; but the size of the pie.