The flawed 'blue ocean' strategy


Satoru Iwata and Nintendo achieved great success with DS and Wii using a blue-ocean strategy of developing and catering a product to a greater audience. The blue-ocean strategy, therefore, can work, when done right. The problem is doing it right.

The blue-ocean strategy caters to the sheeplike mentality of the majority of the populace, and like ruminants, they will move on to greener pastures; they won't stick around for Wii 2 - that's what the hardcore fanbase is for. Nintendo incorrectly assumed that the sheep they attracted would stick around for Wii U.

I can't think of another form of entertainment that purposefully tries to cater to audiences outside its core demographic. Does InStyle magazine try to branch out and attract male readers? Does The View try to appeal to male viewers? Does the NBA try to appeal to females? The answer is no to all of the above, yet they probably have a viewerbase that is diverse in number, if not percentage.

Why? It's because they do not dilute their message nor their product by trying to please everyone. This is Nintendo's biggest flaw and their biggest strength. When they show games like 1-2-Switch and ARMS, they are demonstrating their reluctance to commit to their core fanbase. They do not want to be monogamous; they want more partners.

To an extent, branching out is good and necessary for growth. Even Sega did the same, and achieved great results. I guess the key, in the future, will be balance.

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