Resources can be considered as inputs that enable an organization to carry out its activities. Apply this framework; there are 5 groups of resources, namely physical, financial, human, technological resource and reputation.
Physical Resource
- Locations and Utilization: Nintendo is known as a global company with a large number of branches and manufacturing units located in many countries operating internationally. With the square of 35,000 m2, Nintendo of America has the ability to process more than 20,000 orders a day, which include retail stores that sell products and order online (Brown, 2007). Nintendo of Europe and other branches control the publishing, distribution, sales and marketing in local areas. Some of them also manufacture some Wii games locally and also being third-party distributors of some game titles. It allows Nintendo to take advantages of low cost for manufacture as well as economy of scale by corporate with other console component manufacturer like Foxconn.
- R&D Facilities: Hardware development department of Nintendo is located at Nintendo’s worldwide headquarters in Japan and U.S. The developing software and hardware technologies…show more content… Blair and Hitchcock (2004) mentioned organizational strategy and business objective could be influenced by economic factors as well as outside forces from external environment. PEST analysis is considered as an essential tool to investigate macro-economic factors of external environment included political, economic, social, and technological factors (Henry, 2011). The external influences have major impact on firm’s making decision and market growth. By evaluating in these factors, companies could archive a precise ability to position themselves, generate opportunities as well as narrow external threats (Henry, 2011). Therefore, PEST analysis is employed in order to identify the external environment of