Nintendo Case Study Questions And Answers

1. Was Nintendo just lucky, or does the Wii’s success have strategic merit? Nintendo’s strategy was very clear and clever. It thought that it could not survive in the competition with Microsoft’s Xbox and Sony’s Play Station 3. So, Nintendo do not try to compete to the competitor rather than it tried to rebuild the gaming system. Without concerning the more advanced technology, it tried to do more using less investment. The gamers are of two types; teenagers and hardcore gamers.

Company earns a lot from the core gamers and they spend a lot in this.

As the hardware become more sophisticated and games are more realistic and whether this tech people are more likely pleased. So, Nintendo focuses on the fun playing games rather than the technological junkies. They realized that they couldn’t make a better product, so by changing the way in which the product is used they created a whole new market at their control.

By changing their focus away from the game but the experience Nintendo created a unique strategy that is now synonymous with their name.

Nintendo developed the Wii with a very specific design and marketing strategy in place. So, Nintendo’s strategy was so resourceful and it worked like magic mix strategy. 2. Has Nintendo put the “fad” questions to rest? State a case as to why the Wii is or is not here to stay. Nintendo tried its best to keep the game alive for a long time. So it invested a lot of money in order to ensure Wii’s success does not fade away as like most of the game consoles launched before this time.

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Nintendo released many classic games like Mario, Zelda etc. or Wii and to continue the journey of new games they made an agreement with two outside companies to ensure the new games string and released two popular games like Final Fantasy, Capcom for the Wii gaming Console. Nintendo hopes that “the release of these titles will do more than appeal to traditional gamers. It will elevate the Wii’s image to one that will run the industry’s most advanced games. ” By reaching to the gamers of different taste, Nintendo got a tremendous demand on their products and they continue with their good growing market shares. 3.

Wii Product Life Cycle

In which stage of the product life cycle is the Wii? Based on that stage, is Nintendo employing good marketing mix strategies? Nintendo’s Wii is staying in the maturity stage of the product life cycle now-a-days. Wii has been in the market for two years and the sales of Wii console have peaked for most of the time. As of the low price and better quality of Wii gaming console has been cordially accepted by the games around the world. Cost of producing Nintendo Wii is not high due to the lack of high-tech components, allowing the sales price of $250 to bring in decent profits for each unit sold.

Nintendo tried to bring non-gamers into the industry via the Wii, and by pushing the product in that direction they are able to set themselves apart from the competition. The most important part of the Nintendo Wii marketing strategy is the sales promotions targeting the gamers. Nintendo is consistently taking opportunities to bring gamers over from the competition to the Nintendo Wii. Lower and fascinating price; and more effective advertising strategies made the Nintendo more renowned around the world and the company is growing so fast, whereas making more profits. 4.

Develop a strategy for the Wii’s next product life cycle phase. Nintendo developed more user friendly gaming console using less technology. To survive in the competition that Microsoft and Sony created, Nintendo need a defensive strategy that may help to protect the company from declining stage of the product life cycle. Moreover, they have to think to beat up the technology to survive in the market. So, Nintendo have to replace the emerging technology of Wii to hold up the existing product demand. Next generation of video game consoles need time yet to come in the market.

But the Nintendo has the less time for product modification and increasing the technological advancement of Wii. May be or maybe not, Nintendo can modify the existing product by redesigning with the help of technology or, may be Nintendo can think about a new product that can take over the place of Wii and fulfill the demand of Wii existed in the market. However in the meantime they need to ensure the Wii’s market share and continued profits. Nintendo should redesign their existing product Wii or Design a new one to take over the market; this decision should be made quickly by the administration of the Nintendo.

But it is the high time to think about the product and competition seriously and make a quick decision, so that the research of product modification or creation of a new product can be started very soon enough. 5. Discuss the potential threats to Nintendo’s future success. What will help Nintendo avoid a premature decline for the Wii? Nintendo survives if the product Wii survives in the competition. And the Wii lacks technological touch which made it an emerging product. But the gamers want new technology and new entertaining materials, but the Wii lacks of these materials that can fascinate the games and consumers.

As a new product the Wii is the center of attraction for the gamers but after a little time the lack of technology can be threat for the Nintendo. Moreover, to develop and redesign the product Nintendo needs to have its own Research and Development facilities. So can research and develop new items to survive in the future market. Within a few time the Nintendo have to compete with the big giants like Microsoft, Sony and other upcoming companies. As a result, Nintendo need to be prepared for the surviving battle of future from now on. And the Nintendo needs to develop new ideas to penetrate the market.