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Nintendo: Reviving a Company, Transforming a Market - Case Study Example

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Nintendo: Reviving a Company, Transforming a Market 1.0 Was Nintendo Just Lucky, Or Does The Wii’s Success Have Strategic Merit? The success of Nintendo with Wii is due to its innovative designs in gaming system. Various advanced features have been incorporated in the gaming system and the competitive pricing has also been placed…
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Nintendo: Reviving a Company, Transforming a Market 0 Was Nintendo Just Lucky, Or Does The Wii’s Success Have Strategic Merit? The success of Nintendo with Wii is due to its innovative designs in gaming system. Various advanced features have been incorporated in the gaming system and the competitive pricing has also been placed. The company has tried to incorporate a few innovative and up graded technology in Wii so that it remains quite different from its competitors. Therefore, the success of the company is due to its strategies of designing innovative products with affordable prices. Thus it can be concluded that the success of Nintendo is due to its strategic decisions. 2.0 Has Nintendo Put The “Fad” Question To Rest? State A Case As To Why The Wii Is Or Is Not Here To Stay. Nintendo has implemented innovative technology in its gaming products and the prices were also low. Starting price of Wii was $250; whereas the price of Sony PlaySation 3 was $599. Though the price was low, there were complaints from the consumers (Moats, 2008, p. 6). Nintendo Wii’s sales have lowered down to about 31.5% in the year 2011 as compared to the similar period during the last year i.e. 2010. The sales of gaming console dropped from January 2010 figures of 465,800 to 319,000 in the month of January 2011 (, 2011). The company is under pressure from various analysts and they were of the opinion that Nintendo could not survive in a long run because the ‘graphical horse power’ systems of Wii are weak as compared to its competitors (File Factory Games, n.d.). Therefore, by observing the above context it can be stated that it may not be possible for Nintendo Wii to stay in the market. 3.0 In Which Stage Of The Product Life-Cycle Is The Wii? Based On That Stage, Is Nintendo Employing Good Marketing Mix Strategies? The analysis of Wii in the market has exhibited that it was in the growth stage of product life cycle but they were entering the maturity phase. The products that have been developed were highly advanced and faced huge growth in the market. When they observed that the growth of the products was rising, they began to prepare more innovative products with exclusive features. The purpose was to influence the customers towards their products and to make them interested with their unique product line. The company has provided extensive efforts so that the products can be sustained in the market for a longer time period. Thus, it can be said that the company has implemented effective marketing mix strategies. 4.0 Develop A Strategy For The Wii’s Next Product Life-Cycle Phase. Wii in the maturity phase of product life cycle needs to build up certain strategies that would enable it to compete with its competitors. In this phase, the company is required to compete extensively with highly advanced products. It can implement next generation game system which may keep them away from the reach of their competitors. The developed technological systems can only help them to remain competitive in the next phase of product lifecycle. As the competitors are expected to apply more upgraded technological features in their products, therefore Nintendo to remain abreast with its competitors, has to be technologically competitive and provide unique features in their new products. 5.0 Discuss The Potential Threats To Nintendo’s Future Success. What Will Help Nintendo Avoid A Premature Decline For The Wii? The future of Nintendo is based on the economic condition and possible threat of superior offerings from its competitors. The year 2008 was a time of global economic crisis. There was a slow business growth and therefore it has an impact on the new products in the market. Wii was launched in the market at the time of global recession and the life cycle of the Wii has extended after the crisis has over (Jansen & Uexkull, 2010). The competitors of Nintendo have not launched any innovative products during the crisis as their attempt was to launch innovative products with superior quality after the economic crisis is over. After the crisis period, the competitors’ products will be of much demand as it will be new in the market and the features and technologies used in the products can be expected to be prepared keeping in view the drawbacks of Wii. Thus, the sales of Wii may become reduced that time and its demand can also lower down. Nintendo needs to provide superior products that will result in extending the lifecycle of Wii. The product price of Nintendo had been kept quite low as compared to the features that it had provided. The unique gaming experience can also be stated as an aspect which would help Wii to avoid facing premature decline. Therefore, these aspects can enable Wii to sustain in a stable phase in the competitive gaming market for a longer period of time. 6.0 References File Factory Games. (No Date). Despite a lack of horsepower, the wii is taking charge this generation. Retrieved July 11, 2011, from Jansen, M., & Uexkull, E. V. (2010). Introduction. Retrieved July 11, 2011, from Moats, B. (2008). Weakness. Retrieved July 11, 2011, from (2011). Report: Nintendo Wii sales down 31.5 percent from January 2010. Retrieved July 11, 2011, from,2817,2380665,00.asp 7.0 Bibliography Kotler, P., & Armstrong, G. (2010). Principles of Marketing. (13th ed.). Upper Saddle River: Prentice Hall. Read More
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