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Business Strategy - Essay Example

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For Nintendo, substitutes do not have a great impact on sales as Nintendo is a leader in its industry so the company foreshadows coming changes and innovation in game…
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Business Strategy
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Download file to see previous pages gn competition, accelerating technology, automation, population decentralization, expansion, and innovation will spur the appearance of this new marketing form (NINTENDO Home Page 2009). The application of computer technology and the use of new analytical techniques have added greatly to the efficacy of planning activities suing such tools as critical paths, input-output analysis, payoff matrices, decision trees, linear programming, and simulations. In price category, Nintendo proposes low prices in contrast to competitors so the company attracts millions of users around the world (Bresnahan, 2001).
For Nintendo, the decision as to whether or not to enter this stage and pursue rapid growth may be influenced by the business leader wanting to make more money, desiring to lead a large business or perhaps for the status. Alternatively it could be driven by the demands of the customers who may want to put more trade with the business and who might take their trade elsewhere if the business cannot respond (NINTENDO Home Page 2009). As such, the Internet and PCs industry enables Microsoft to pursue a low-price strategy while maintaining profitability. There are industries in which this is already proving possible: indeed, in some sectors we are starting to see wholesale migration from physically based methods of doing business to virtual methods. The reasons for such a rapid increase are obvious: the target market of the affluent young (often men) fits well with the demographics of the Internet; regular surfers on the Internet are highly likely also to hold stocks and shares. Finally, the speed with which the transaction can be completed is far quicker than that using the traditional methods. This creates new unlimited opportunities for Microsoft and its new products (Terdiman, 2009).
In video game industry, barriers to entry are high because of nearly monopolistic position of such giants as Microsoft and Nintendo. There are some clear forces of change motivating the ...Download file to see next pagesRead More
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