Nintendo History Essay

Nintendo was founded in 1889. It was a poker card workshop. But without delay its japans most famous venture harvest-festivalion company. Its fruition of electronic games are popular all around the world. Nintendo is the NO.1 of the worlds video game companies. With only 850 staffs, Nintendo used to beat such super enterprises as Toyota occasionally, thus becoming Japanese first profit-making company. Nintendo spells Wii with both lower-case I characters means To resemble two people standing side by side, representing players gathering together.Wii sounds equivalent we, which emphasizes that the console is for e very(prenominal)one. Wii can easily be remembered by people around the world, no subject what language they speak. The Wii is a home video game console released by Nintendo on November 19, 2006. The Nintendo Wii is the 7th generation video game console of the Nintendo series. It plays Nintendo video games via discs, and detects doing in three dimensions. The Wii is m eant to stimulate interactivity and movement among its users, so that they play games and get exercise simultaneously. The primary radio set(prenominal) ascendency, the Wii remote, is a handheld pointing device which arranges the on-screen player mimicker the movements of the person possessing the Wii remote.Nintendo harvest-feastion of electronic gamesIn 1983NESIn 1989Game BoyIn 1990Super FamicomIn 1996Nintendo64In 2001Game Boy AdvanceIn 2001GameCubeIn 2004Nintendo DSIn 2006WiiIn 2012Wii Uhttp//game.people.com.cn/n/2012/1120/c49419-19633647-4.htmlhttp//blog.eio.com/2012/07/21/an-introduction-to-the-nintendo-wii/1. Was Nintendo just lucky, or does the Wiis success pull in strategic merit?Nintendos strategy was very clear and clever. It persuasion that it could not survive in the competition with Microsofts Xbox and Sonys Play Station 3. So, Nintendo do not evidence to compete to the competitor rather than it tried to rebuild the gaming system. Without concerning the more adv anced technology, it tried to do more using less investment. They realized that they couldnt make a better product, so by changing the way in which the product is used they created a whole youthful market at their control. By changing their focus off from the game but the experience Nintendo created a unique strategy that is now synonymous with their plant. Nintendo developed the Wii with a very specific design and trade strategy in place. So, Nintendos strategy was so resourceful and it worked like magic mix strategy.Their success with the Wii really stems from two sources. First, they have gained substantial market share with previously untapped demographics (elderly, smallchildren, and families). Second, because they have eliminated some of the bestowitional costs and features of the more advanced game systems, they have been satisfactory to better compete based on price.Even while they were struggling, Nintendo maintained a strong set within the gaming industry.Marketing Strategies of Nintendo are through the product, pricing, publicity, and place. With the product, Nintendo redesigned the controller to make it easier and more nature to play games,e.g motion sensitivity, IR sensors. Nintendo keep price at $250.00 while XBOX and PS3 over $350.00. Wii games cheaper $10.00 than XBOX and PS3. It offering various accessories to generate revenue. Ninendo promotion through mass selling, uses intermediary (GameStop, hypermarket, mall), uses both push or pull techniques. Pushing is used by advertising through commercials, ads, circulars, magazines, and internet.Pulling is demonstrated by holding on-hand inventory low leaving customers returning to check availability.Nintendo has included a free game with eachWii building block, other systems, they increase the price by $20-50. they offer the Nintendo wireless local area network connection. This allows you to play certain online games against friends and others. Nintendo&aposs WiFi connection is free and o ffers many nice updates. About the place, Nintendo has distribution centers around the world. Each distributing the regions version of Nintendos systems or games.In the United States there are 2 distribution centers, that are Redmond, Washington Atlanta, Georgia. Retailers get their inventory directly from Nintendo.Businesses are gaining approximately $10 per unit sold however, they make their money through game and accessory sales. 2) In which branch of the product life cycle is theWii? Based on that stage, is Nintendo employing good marketing mix strategies? The sales of Nintendo keep increasing and last sales not significant. The stages is growh- early maturity. If a product is accepted by the marketplace, it enters the growth stage of the product life cycle. The growth stage is characterized by increasing sales, more competitors, and higher profits. Unfortunately for the pissed, the growth stage pull ins competitors who enter the market very quickly. For example, when Diet bl ow experienced great success, Pepsi soon entered with Diet Pepsi. Youll notice that both Coca-Cola and Pepsi have similar competitive offerings in the beverage industry, including their own brands of bottled water, juice, and sports drinks.As additional customers demoralise to buy the product, manufacturers must ensure that the product remains available to customers or run the risk of them buying competitors offerings. For example, the producers of video game systems such as Nintendos Wii could not keep up with consumer demand when the product was first launched. Consequently, some consumers purchased competing game systems such as Microsofts Xbox. A company sometimes increases its promotional spending on a product during its growth stage. However, instead of encouraging consumers to try the product, the promotions often focus on the specific benefits the product offers and its value relation to competitive offerings. In other words, although the company must still inform and educ ate customers, it must counter the competition. Emphasizing the advantages of the products brand name can help a company maintain its sales in the face of competition.Although different organizations produce personal computers, a highly recognized brand such as IBM strengthens a firms advantage when competitors enter the market. New offerings that utilize the same successful brand name as a companys already existing offerings, which is what Black & Decker does with some of its products, can kick the bucket a company a competitive advantage. Companies typically begin to make a profit during the growth stage because more units are being sold and more revenue is generated.The number of distribution outlets (stores and dealers) utilized to sell the product can also increase during the growth stage as a company tries to reach as much of the marketplace as possible. Expanding a products distribution and increasing its production to ensure its availability at different outlets usually res ults in a products costs stay high during the growth stage. The price of the product itself typically remains at about the same level during the growth stage, although some companies reduce their prices somewhat to attract additional buyers and meet the competitors prices. Companies hope by increasing their sales, they also improve their profits.The Maturity StageAfter many competitors enter the market and the number of emf new customers declines, the sales of a product typically begin to level off. This indicates that a product has entered the maturity stage of its life cycle. Most consumer products are in the rise stage of their life cycle their buyers are repeat purchasers versus new customers. Intense competition causes profits to fall until only the strongest players remain. The maturity stage lasts protracted than other stages. Quaker Oats and Ivory Soap are products in the maturity stagethey have been on the market for over one hundred years. presumption the competitive environment in the maturity stage, many products are promoted heavily to consumers by stronger competitors. The strategies used to promote the products often focus on value and benefits that give the offering a competitive advantage. The promotions aimed at a companys distributors may also increase during the mature stage. Companies may decrease the price of mature products to counter the competition. However, they must be careful not to get into price wars with their competitors and destroy all the profit potential of their markets, threatening a firms survival. Intel and Advanced Micro Devices (AMD) have engaged in several price wars with regard to their microprocessors.Likewise, Samsung added features and lowered the price on its Instinct mobile phone, engaging in a price war with Apples iPhone. With the weakened economy, many online retailers engaged in price wars during the 2008 holiday season by cutting prices on their products and shipping costs. Although large organizations such as Amazon.com can absorb shipping costs, price wars often hurt smaller retailers. many retailers learned from their mistakes and ordered less inventory for the 2009 holiday season. Companies are challenged to develop strategies to extend the maturity stage of their products so they remain competitive. Many firms do so by modifying their target markets, their offerings, or their marketing strategies. Next, we look at each of these strategies. Modifying the target market helps a company attract different customers by seeking new users, going aft(prenominal) different market segments, or finding new uses for a product in order to attract additional customers. Financial institutions and automobile dealers realized that women have change magnitude buying power and now market to them.With the growth in the number of online shoppers, more organizations sell their products and services through the Internet. Entering new markets appends companies an luck to extend the product life cy cles of their different offerings. Many companies enter different geographic markets or international markets as a strategy to get new users. A product that might be in the mature stage in one country might be in the introductory stage in another market. For example, when the U.S. market became saturated, McDonalds began opening restaurants in foreign markets. Cell phones were very popular in Asia before they were introduced in the United States. Many cell phones in Asia are being used to scan coupons and to charge purchases. However, the market in the United States might not be ready for that caseful of technology. Modifying the product, such as changing its packaging, size, flavors, colors, or quality can also extend the products maturity stage.The 100 Calorie Packs created by Nabisco provide an example of how a company changed the packaging and size to provide convenience and one-hundred-calorie portions for consumers. While the sales of many mail boatd foods fell, the sales of the 100 Calorie Packs increased to over $200 million, prompting Nabisco to repackage more products. 5Kraft Foods extended the mature stage of different crackers such as Wheat Thins and Triscuits by creating different flavors. Although not popular with consumers, many companies downsize (or decrease) the package sizes of their products or the amount of the product in the packages to save money and keep prices from rising too much.Car manufacturers modify their vehicles slightly each year to offer new styles and new safety features. Every three to five years, automobile manufacturers do more extensive modifications. Changing the package or adding variations or features are common ways to extend the mature stage of the life cycle. Pepsi recently changed the design and packaging of its soft drinks and Tropicana juice products. However, consumers thought the new juice package looked like a less expensive brand, which made the quality of the product look poorer. As a result, Pepsi resume d the use of the original Tropicana carton. Pepsis redesigned soda cans also received negative consumer reviews.Tropicanas New PackagingTropicanas new (and now abandoned) packaging look didnt discriminate well with the orange and the straw but is still used on the lower-calorie Tropicana. When introducing products to international markets, firms must decide if the product can be standardized (kept the same) or how much, if any,adaptation, or changing, of the product to meet the needs of the local culture is necessary. Although it is much less expensive to standardize products and promotional strategies, cultural and environmental differences usually rent some adaptation. Product colors and packages as well as product names must often be changed because of cultural differences. For example, in many Asiatic and European countries, Coca-Colas diet drinks are called light, not diet. GE makes smaller appliances such as washers and dryers for the Japanese market. Hyundai Motor Company had to improve the quality of its automobiles in order to compete in the U.S. market. Companies must also examine the external environment in foreign markets since the regulations, competition, and economic conditions vary as well as the cultures.Figure 7.15Some companies modify the marketing strategy for one or more marketing variables of their products. For example, many coffee shops and fast-food restaurants such as McDonalds now offer specialty coffee that competes with Starbucks. As a result, Starbucks managers a decided it was time to change the companys strategy. Over the years, Starbucks had added lunch offerings and moved away from grinding coffee in the stores to provide faster service for its customers. However, customers missed the coffee shop atmosphere and the aroma of freshly brewed coffee and didnt like the smell of all the lunch items. As a result of falling market share, Starbucks former CEO and founder Howard Schultz returned to the company. Schultz hired consult ants to determine how to modify the firms offering and extend the maturity stage of their life cycle. Subsequently, Starbucks changed the atmosphere of many of its stores back to that of traditional coffee shops, modified its lunch offerings in many stores, and resumed grinding coffee in stores to provide the aroma customers missed.The company also modified some of its offerings to provide health-conscious consumers lower-calorie alternatives. 6 After the U.S. economy weakened in 2009, Starbucks proclaimed it would begin selling instant coffee for about a dollar a cup to appeal to customers who were struggling financially but still precious a special cup of coffee. The firm also changed its communication with customers by utilizing more interactive media such as blogs. Whereas Starbucks might have overexpanded, McDonalds plans to add fourteen thousand coffee bars to selected stores. 7 In addition to the coffee bars, many McDonalds stores are remodeling their interiors to feature fl at screen televisions, recessed lighting, and wireless Internet access. Other McDonalds restaurants kept their original design, which customers still like.http//www.studymode.com/essays/Assignment-Case-Study-Of-Nintendo-878245.html http//www.papercamp.com/essay/46271/Nintendo-Case http//www.xbitlabs.comhttp//catalog.flatworldknowledge.com/bookhub/2030?e=fwk-133234-ch07_s02