Nintendo Market Analysis

2863 WordsNov 14, 200912 Pages
4C stakeholder’s analysis of Nintendo Wii Market in 2006 Customers: Nintendo Co Ltd (Nintendo) and its new president Satoru Iwata believed potential existence of a consumer market that distanced itself from gaming. They opined that existing games were not only difficult to understand and play, but also found the consoles complex to operate. The games were built more on fantasy and targeted towards traditional over 18 year old male[1] population. Nintendo made a conscious attempt to bring the non gamers into the spot light and create a new consumer segment. They decided to concentrate on simplicity and real life game scenarios. Nintendo designed and marketed “Wii” as family entertainments devise involving all age and gender…show more content…
The competitors in order to increase their sale have been reducing the prices regularly. Nintendo though kept its price constant until recently. They announced a price reduction of USD 50[12] in US recently to improve recent decline in sales. Energy consumption bill to Wii consumers is as low as USD 10 per year compared to USD 130 per year for the other game devises. Place (Distribution): The Company due to its long presence in the industry had existing distribution network. The company appointed at least one distributor in each state in U.S. who in turn distributed the product and software to retailers. They were able to place and display the product at major super markets and shopping malls. However even after a year of its launch Nintendo was heavily criticized and confronted for not meeting the demand. This may have been due to genuine shortages of parts and their inability to correctly forecast the demand. The queues to purchase Wii were still there even after one year of its launch. Though there is no concrete evidence, and Nintendo might have created the scarcity to maintain high interest and curiosity. They realized that due to the uniqueness of the product, consumers are willing to wait to buy this product rather than look for alternatives. This scarcity was especially visible in the US market while European demands were being met reasonably

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