Nintendo: Reviving a Company, Transforming a Market

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Paper Outline

Question 1
Question 2
Question 3
Question 4
Question 5

Reviving a Company, Transforming a Market

Question 1

The success of the Wii was as a result of the strategies established by Nintendo. Therefore, the company was not lucky to win the market. The company conducted a lot of research before introducing the product. For instance, the company consulted the potential customers about their needs. This information helped the company with developed consumer oriented products. The company has developed strategies to manufacture the Wii product at a reduced cost.

This strategy has improved the pricing strategy of the company. The Wii has a price of $250 while the PS3 has a price of $599. Nintendo has managed to offer low prices because it has established efficient production strategies. The consumers are ready to buy the Wii at a lower price because it has unique features and has high quality.

Question 2

The fad question has been answered because the Wii product is there to stay. The company has adopted the strategy of improving the Wii to capture the demand of many customers. Nintendo has operated in the market for a longer time than any other company in the industry. Therefore, the company has adequate experience to maintain the demand of the product for a long time. Nintendo produces the Wii product in large volumes, and this strategy has improved the efficiency of the company. Therefore, the company can sell the product at a low price. In addition, the company has started to differentiate the Wii product. For example, the Wii Fit was introduced to serve he needs of women.

Question 3

The Wii product is at the maturity stage of the product life cycle. This is because he costs of producing the product have declined as a result of mass production. The sales of the company have increased tremendously. The customers are aware about the product in the market. New players have entered the market, and competition is stiff. Price decline has been experienced because competition has increased. Nintendo has differentiated its products to attract many customers. For instance, the company has introduced the Wii Fit, to capture the demand of women.

Product Life Cycle Curve

Nintendo is employing a good marketing mix strategy because the products of the company have superior quality and are offered at a fair price. In addition, the products are located in strategic marketplaces because the company has developed online stores to sell the products. The company also conducts intensive promotion approach to ensure that the consumers get information about the products of the company.

Question 4

Nintendo should develop a cost-based pricing strategy because the next stage of the Wii is decline phase. It is expected that the sales of the Wii will decline, and the cost of production will increase. The distribution efficiency will also decline, and the company will experience losses if the same price is maintained. Therefore, there is a need to differentiate the product. This can be achieved by adding new product features, and increasing the prices of the Wii.differentiating the product will improve its market position because the renewed brand will capture the demand of new customers.

In addition, the company should focus on selling the product to a niche market. The niche market should consist of the people who might not have experienced the Wii product. This strategy will help the company to sell the Wii product at a higher price because a niche market is unique. Therefore, niche pricing strategy should be applied once the company identifies a niche in the global market.

Question 5

Nintendo is experiencing the threat of price wars in the market. Even though the competitors in the market sell their products at higher prices, there is a threat that the prices of similar products might decline. The price of the Wii is $250 while the price of the PS3 is $599. As competition increases, other companies will identify efficient processes of manufacturing, and they will cut the production costs. This will help reduce the price of the products. This scenario will force Nintendo to further reduce the price of the Wii.

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