A presentation as a response to Amazon + Nintendo business cases. Hope you enjoy it. If you have any questions, please leave a comment.

1. Disruptive StrategiesAn analysis of successful innovations By ErtiDhamo Management of Information Systems Fox School of Business, Temple University Philadelphia PA

2. Abstract In this presentation you will see: How Amazon.com was founded The initial strategies towards success The business rationale behind Amazon Web Services Also: Nintendo’s struggle with competition in the entertainment industry Nintendo’s product development strategy The positions of Nintendo’s products.

3. The “Walk” Lets begin to analyze the strategic steps of each company

4. Foundation of Amazon.com Originally founded by Jeffrey Bezos in 1995 Company Aim: “Become Earth’s biggest bookstore” Innovative website Personalization “One Click Customer Reviews

5. Financial Figures

6. Current Value As of 2009, Deutsche Bank estimated Amazon.com to be worth: $225 Billion

7. Business Strategy of Amazon “Grow fast, even at expense of profitability” Invested heavily in Technology Web site Innovations, E-Commerce infrastructure Entrepreneurial Culture Small teams focusing on long term goals Notable Expansions Clothing, digital music, and of course The Kindle

8. Towards the “Cloud” Andy Jassy General idea: “More access to core functions, more revenue for Amazon” The Associates Large group of advertisers of Amazon products Main function: Refer sales to Amazon in exchange for commissions The Developers Require more access to Amazon’s core features Vision: The Internet as an Operating System

9. Establishment of Major Services

10. Nintendo: An overview Originally founded in 1889 in Kyoto, Japan. 1991: First gaming platform – Super NES 1996: Launched Nintendo 64 2004: Launched Nintendo DS November 2006: Launched the highly successful Nintendo Wii

11. Incentives toward change

12. Simple Strategies Reach out to non-gamers in order to create a bigger market No boundaries Age, gender, or gaming experience Easier games to play Easy-to-play controller Real life game scenarios rather than fantasies

13. Introduction of the Wii

14. Disruptive Strategies of Nintendo Development of game titles was done in-house No third party delays Development of software in conjunction with hardware requirements and vice versa “Exergaming” – Physical Exercise along with gaming Recommended by doctors to patients WiiWare – Established network where freelance developers can sell their own game titles

15. Disruptive Innovation: Getting The Point What consists a disruptive innovation? Production/Usage costs Opening of new markets Ease of manufacturing Types of disruptive innovations Low End disruptions Low cost innovations that benefits low budget customers New Market disruptions Introduction of a product that is not used by a large market share

16. Amazon and Nintendo: Back-to-Back comparison of disruption strategies Amazon AWS Low End Disruption Transition of web hosting into virtual “cloud” Low cost charges Instant support when needed Elasticity of host systems to fit consumer needs Nintendo Wii New Market Disruption Increasing market share Low cost of manufacturing Simplicity of use Incentives for little start-up developers