Nintendo In Hungary Essay, Research Paper

Nintendo

In

Hungary

Geographical Settings:

Hungary is located in central Europe and it covers about 93,000 square kilometers. It is bounded to the north by Slovakia, to the east by Ukraine and Romania, to the south by Yugoslavia and Croatia, and to the west by Slovenia and Austria. Most of the eastern part of the country is flat, but the northwestern area has rolling hills and low mountains. Almost 55% of the land is suitable for cultivation, allowing the country to be nearly self-sufficient in food. The capital city is Budapest which lies on both sides of the Danube River. One-fifth of Hungary?s population resides in this city. The climate is continental, with cold winters and warm, pleasant summers. There are four distinct seasons. The average temperature in winter is 32 degrees Fahrenheit, and in the summer, within 70-75 degrees Fahrenheit.

History:

Western Hungary became part of the Roman Empire in 14 b.c. as the province of Pannonia, but the east remained in the hands of Germanic and other tribes. In the fifth century, Magyars began migrating from the east. By the end of the ninth century, the Magyars had conquered the resident Moravians and begun permanent settlement. Christianity was introduced in the late 10th century. King Stephen was Hungary?s first king in 1000 A.D. who converted the people to Christianity.

Language:

The official language is Magyar, or Hungarian. Magyar is part of the Finno-Ugrian group of the Uralic family of languages, which includes Estonian and Finnish. There is a large Romany community, numbering between 500,000 and 700,000 people, along with Croat, German, Romanian, Serbian, Slovak, Slovene and Jewish minorities. About 98% of the population speak Hungarian, but most minority groups also speak their own languages in addition to Hungarian.

Family:

The average Hungarian family has three people. Urban families tend to be smaller than rural ones. The cost of living is high in cities and housing is often limited. The father maintains the dominant role in the family, but both parents usually work. About 80% of all women work. Urban families live in either small apartments or single-family homes, while rural families have simple homes. Most have access to modern appliances and conveniences. People in rural areas marry at an early age and follow ethnic customs regarding courtship and marriage. Those in urban areas are less concerned with the following tradition. Many college students wait until the completion of university or graduate training before getting married. With housing in short supply, young couples may live with their parents for the first few years of their marriage.

Education:

Children under the age of three years attend cr?ches and those between the ages of three and six years attend kindergartens. Education is free and compulsory between the ages of six and sixteen years of age. Primary education begins at age six, with basic school, and continues until the age of fourteen. In southern Hungary, bilingual schools have been established to promote the languages of the national minorities. The most popular types of secondary schools are the grammar school and the secondary vocational school. Those who successfully complete secondary school may go on to any of the five academic, four medical, and nine technical universities in Hungary. There are 40 other institutions of higher learning available. The literacy rate is 99%.

Transportation and Communication:

Public transportation in Hungary is well developed. There is a subway in Budapest and taxis are also available. More and more people own private cars, but public transportation is still the principal mode of travel. An extensive train network serves most of the country. The communications system is modern, although most families do not have telephones. This is especially beneficial to the marketing of Nintendo. There is no need for a telephone to use Nintendo. Although talking on the phone is a favorite past time for teens here in the U.S., it is not common in Hungary. Therefore, the playing of Nintendo can easily become a favorite past time within the teens in Hungary.

Hungarian Culture:

Hungary is a nation strongly rooted in its heritage and culture. The country has changed and evolved significantly over the centuries. Over the recent century it has undergone serious changes to its political schematic and is finally asserting its place as a contender in Eastern European affairs. From the aftermath of World War II to the induction into NATO, Hungary has slowly climbed the ladder to cultural and economic success. Hungary is a country with a soul and spirit. The landscape is not the only beauty that exists in this small European country.

The Hungarian nation was first a kingdom and only recently became a republic. The capital of Budapest is home to over 20 percent of the population. It is within this city that Nintendo intends to first begin its marketing strategy. Before any action can be taken in searching out distributors for the Nintendo products consideration must be given to the government policies and regulations of the Hungarian political system. It has been ten years since the fall of communism and the Berlin Wall. Hungary along with Poland and the Czech Republic are functioning under democratic governments. The tyrannical rule of Russian Moscow no longer impedes Hungary?s economic, political, or social agendas. There is still much room for improvement in the case of Hungary, but the nation has been increasingly successful compared to the other neighboring countries. Under a democratic system the people are capable of having an opinion about the actions taken by their government. When opportunities such as the Nintendo endeavor arise they have a voice to be heard.

The possibility of economically stimulating ventures is appealing to the still weak Hungarian economy. The federal government must give approval of course when any foreign country is considering exporting goods into their country. It does not end there for the potential exporters; they must make the effort to engage the local governments in discussion about their intended marketing plans. In the relatively small country of Hungary there are nineteen subdivisions. These subdivisions are smaller versions of the states in America. Each of these subdivisions is called a megye. The megye?s have their own council and appointed head or mayor who makes pertinent decisions concerning the local economic state. Entrepreneurs must approach these megyes and proposition them with their product, in this case Nintendo would need to send representatives to investigate and negotiate the best possible megyes to begin marketing Nintendo products. The megyes encourage overseas economic ventures because in recent years Hungary?s economy has been slow in regaining its pre-WWII status. Promoting prosperity is one of the main functions of the head of each megye. The assembly meets and together they confer on whether or not the potential suppliers are capable of complying with local guidelines and if the company is sound enough to be trusted. The heads of the assembly do not intend to sacrifice the peace and comfort of its citizens unless the endeavor would create lucrative economic outlets and satisfy the Hungarian consumers with the merchandise. Once within the good graces of the local government megyes, Nintendo will have overcome the first of its many obstacles.

Nintendo must take account of many aspects of Hungarian culture when considering distribution of their product. The company must be aware of workdays, holidays, and religious celebrations. The basic belief system of the Hungarian people is firmly rooted in their centuries old Roman Catholic faith. More than seventy percent of the Hungarian population practice the religion and are very loyal to the traditions it brings. Easter and Christmas are two very important holidays to consider in determining when Nintendo will place their electronic toy products into the market. The remaining thirty- percent of the population is divided; twenty-eight percent to the Protestant faith and two percent to the Jewish faith or other religions. Due to the fact that the majority of the population practices a Christian religion encourages the idea of promotion and placement into the Hungarian market during the winter season before Christmas time. Children make up the majority of end users of the Nintendo products. Simply adding a GameBoy to their Christmas list is a wonderful marketing strategy for the company. The religion allows the company range to supply goods year round without interference of religious holidays or necessary religious practices that may have caused difficulty in scheduling shop hours. The Hungarian people have a great respect for their religion, seen throughout the nation in its beautiful architecture of the cathedrals. These sacred masterpieces are decorated with ornate depictions of the saints. The Nintendo Corporation should consider developing a game for the Hungarian market where past Hungarian kings and heroes vanquish the oppressive Turks. By incorporating basic Hungarian principles of good being victorious over evil there is no disrespect to the people of Hungary.

There is great pride in Hungarian heritage and this has affected areas of Hungarian culture significantly, for instance its music and entertainment features. The words of the Hungarian National Anthem tell the story of the many struggles the Hungarian nation has overcome and survived. It begins with the threat from the Turks during the early most centuries up until the defeat of communism only a decade before. With this knowledge of past suffering and then imminent victory Nintendo should view this as a golden opportunity to add new games to their marketing mix. The Hungarians are a very romantic people and love to emulate their proud kings riding a fine horse. Or distributing a version of the 007 GoldenEye Nintendo 64 game cartridge would be a huge success taking into account the Hungarian?s negative attitude towards Russia and communism. The 007 GoldenEye game depicts the hero, James Bond, fending off Russian Mafiosos who are attempting to take over the world and cause chaos and havoc. The game would refuel the Hungarian desire for a better life without the threat of communism and a reassertion of old traditions. The theater and appreciation for the arts has also seen a revival due to generous philanthropic efforts of foreigners. Museums are experiencing new interest in past regalia of such famous ancestral monarchs as King Stephen. Having the capability to emulate these figures and enjoy the thrill and fantasy of vanquishing the evildoers adds to the Hungarian desire for the romantic.

The means of living in Hungary is a highly agricultural one. This would lead most companies to believe that the families had little use for advanced electronic technology. The truth of the matter is that although most homes survive on an income based on an agricultural career the work is done primarily by the adults or father figure of the family. The children have little to do with earning a family?s disposable income and spend most of their time restless for entertainment. The farms are not run by provincial means either. Electricity, running-water, and televisions can be found in about every home. The actual tools used on the farms are becoming more technologically efficient. Traveling the countryside a visitor would see a satellite dish at every other home. Budapest is the leading city in Hungary and is the center of the latest trends, which makes it an ideal spot to begin independent marketing of Nintendo products.

Along with this growing interest in technology many traditional forms of recreation exist. In the summer months Hungarian children spend their free-time playing exciting games of soccer and hosting their own gymnastic competitions. The latest sports craze to hit the country is basketball, which they passionately play. Budapest is one of the largest sports centers in present Europe and hosts many athletic events. The love for sports is understandable in such a diverse and growing city. Unfortunately many children who live on farms do not have the opportunity to participate in organized recreational sport programs. These children are the ones who must be catered to and Nintendo is the perfect form of entertainment for children who do not have ready access to other playmates and programs. Nintendo could market any number of its sports games in Hungary and have it an instant success especially during the cold winter months when there is little or no chance to enjoy athletics.

Nintendo must consider the Hungarian language as they progress with their marketing scheme. Hungarian is a very unique language that can not be attributed to any of it neighboring countries. Unlike the former Yugoslavia, Hungarian does not come from a Slavic backgrounds. The language that closest resembles it is Finnish. The are many dialects spoken throughout Hungary. The most common of these is Magyar, which comes from Indo-European descent. It would be necessary for Nintendo to manufacture their products in the native Hungarian language most closely aligned to the popular Magyar dialect in order to be accepted by the Hungarian people. There is great pride in their language and in all the other aspects of their culture. As long as Nintendo respects the Hungarian culture in the development of their product and in its future distribution their products will find success and positive reactions in the Hungarian market and nation.

Hungarian Economy:

The economic analysis of Hungry will cover the areas of population, economic statistics and activity, technology, consumer marketing, and media.

The total population in Hungry is 10,092,000. The total population has declined by 130,000 people, however, there is a higher density due to natural growth. The number of births in Hungry has dropped because of the liberalization of abortion. The birth rate dropped to 10.8%. Half of the population in Hungry is over thirty-five years old. The percentages of people sixty-year old and over in Hungry is well over the international average. The sex distribution breaks downs as follows, 5,247,000 of the Hungarian population are female and 4,818,000 of the Hungarian population are male. The male life expectancy in Hungry is 66, while the female expectancy is 75. Most of the people in Hungary live in the industrialized district, which will expose them to a lot of business and new technology. The gap between rich people is widening with more Hungarians experiencing declining living standards. Forty-four percent of the population lives in poverty. Ninety-seven percent of the Hungarians are of the Hungarian nationality with Hungarian being the country’s language.

The economic statistics and activity in Hungry is very detailed. The GDP in Hungry is 73.2 billion. The GDP has a 5.1% increase from the pervious year equalling 4,694 per capita. The GDP has a growth rate of 4.4% per year. The public sector deficit in GDP increases from 4.8% to 6.8% meaning that the private sector has more influence on the GDP than the public sector.

The average gross income per person in Hungary is 67,764 and the net income per person is 45,162.

The principle industries in Hungary are telecommunication, information technology, Hardware and Software products we trade, pharmaceuticals, plastic base materials and products, cosmetics, household chemical market, pesticide production, automotive parts, paper industry, milk and dairy, processed fruit and vegetables. Most of these industries help in the agricultural market along with forestry and fishing. Hungary is just beginning to experience economic growth after a five-year hiatus. The government believes that Hungary could become a regional transportation, infrastructure, informatics, and financial hubard sets this out as one of its main goals in early drafts of its modernization program.

Telecommunications is approximately one-third of the Hungarian Telephone Company. Ameritech and Deutsche Telecom are the major shareholders. Two competing cellar companies, Westat 900 and Pannog SM, have cellular service in 80% of the country. Although, the telecom sector in Hungary was long independent, recent privatization efforts and foreign investments will significantly improve telecom service.

Services including financial services and advertising represent a growing industry in Hungary. Since this sector is relatively new, it is difficult to collect data on the number of service firms entering the economy. Services is becoming one of the primary growth sectors in Hungary.

The automotive industry harbors major companies including Ford, GM, Audi, and Suzuki, which then established multi-million dollar investments for auto-assembly and/or engine component manufacture. Hungary has targeted increased investments in this sector as a primary goal.

Despite the infrastructure of the international economic conditions exports expanded at a rate that exceeded the growth forecast for the whole global trade. Forecasts indicating an excessive growth of imports did not come true. The growth of exports continues to be led by an expansion of the exports of MNC’s mostly machines. Hungary exports 20.7 billion in which 51.1% machinery.

Hungary continues to face a very serious balance of payments situation. The current account deficit reached 3.8 billion. The government implemented a surcharge on imports of 8% to help decrease the account deficit. The exchange rate of Hungarian currency is 215.96 Fornint to 1 U.S. dollar. Inflation rates in Hungary are equal to 14%, which led to the depreciation of their currency. The unemployment rate in Hungary is 7.8% of the labor force, which consist of 4.3 million people. There are more than 30,000 foreign owned companies operating in Hungary, accounting for 78% of the industrial exports.

Technology in Hungary is steadily growing. There are Hungarian services available on the Internet in their native language and in English. Hungary has 39 television broadcast stations and 47 radio stations. The Hungarian market is very PC oriented, dealing mostly with personal computers and printers. There are 15 computer technology companies in Hungary. Albacomp, Compaq, and IBM are at the top of the list. Microsoft is a leading producer of software used due to heavy use of personal computers. Media is very accessible to the people of Hungary due to their many TV and radio stations. There is one television per 2.5 people in Hungary.

In sum, given the strength of the economy, which is projected to continue, recent international financial disturbances exercised only temporary downward pressure on the currency. This occurrence highlighted the necessity for both fiscal and monitory authorities to be clear in communication with their actor in the market. Never the less, changes need to be radical, rather efforts need to concentrate on improving cooperation between actors within the system, increasing accountability and clarifying responsibilities while realizing incentives with public policy objectives.

Nintendo the company:

Nintendo Co. of Kyoto, Japan, is the acknowledged worldwide leader in the creation of interactive entertainment. Nintendo has sold more than one billion video games worldwide, creating such industry icons as Mario and Donkey Kong and franchise like The Legend of Zelda and Pokemon.

As a wholly owned subsidiary, Nintendo of America Inc. based in Redmond, Washington, serves as headquarters for Nintendo?s operations in the Western Hemisphere, where more than 40 percent of American households own a Nintendo game system.

Company History:

In 1889, Fusajiro Yamauchi, great-grandfather of the current president, began manufacturing ?Hanafuda,? Japanese playing cards in Kyoto. Later on they established an unlimited partnership, Yamauchi Nintendo & Co. and began a distribution company in Japan. In 1959 the company started selling cards printed with Walt Disney characters, opening a new market in children?s playing cards. Then they changed the company name to Nintendo Co. Ltd. and started manufacturing games in addition to playing cards. They made games until they made the games we know and love today like Nintendo 64, Game Boy and Super NES.

The Next Generation:

As we head toward the new millennium, the development of Nintendo?s newest video game console is well underway. This Next Generation system will be second to none. Nintendo is teaming up with widely respected leaders to enhance the interactive entertainment experience. The industry?s foremost 3D designers from U.S. based ArtX will contribute the graphics chip. Engineers at IBM will deliver unparrallel, propriet