Author(s): KIM, W. Chan, MAUBORGNE, Renée, HUNTER, Jason
This case illustrates that if companies wish to tap into latent demand and create organic growth they must learn from noncustomers. The case demonstrates that if Nintendo attempted to compete head-to-head against the Sony PlayStation and Microsoft X-box they would likely have been further marginalized in the game console industry.
Instead, Nintendo looked to the gaming industry´s noncustomers for insight: older non-gamers, parents who wanted their children to play active games, the elderly, and very young children. Once Nintendo understood why these noncustomer groups shunned video games, they reconstructed elements across market boundaries to create a console based on simplicity, functionality, and interactivity, with games that dramatically raised utility for these noncustomers.
The Nintendo Wii case analysis illustrates that a better solution to an existing problem is not good enough. To capture new demand companies need to focus on the demand side of the equation and redefine the problem itself. There are far more noncustomers than customers. Companies need to look systematically across established boundaries of competition and reconstruct buyer value elements across market, industry, buyer, and supplier boundaries to create new market space where a new level of demand is generated.