Nitendo case Essay Example | Topics and Well Written Essays - 500 words

Nitendo case - Essay Example Barrier to entry is observed due to the requirement of a large user base. ii) Demand and Supply Analysis: The lower the price, the higher is the demand. The achievement of profit maximization point prevails in the suppliers’ minds. iii) Economies of Scale: Difficult to reap advantages from economies of scale due to low selling price of consoles and sophisticated technology. iv) Core Competencies: Modernized console and controller design, marketing and attractive game designs lifted up Nintendo. Nintendo is a participant of oligopoly market and along with few strong competitors like Sony and Microsoft it occupies around 96% of the market. Its three focal competencies: excellent marketing skills, modernized consoles and dynamic game designs, provide it with perennial demand by its consumers thereby, placing it much ahead of its competitors in the market. Nintendo’s expertise in attractive consoles, controller designs, handhelds and games are its tools which are precious to the consumer and can neither be imitated nor substituted. On July 7, 2006, Nintendo opened a South Korean subsidiary in Seoul (â€Å"Nintendo†, 2006). Nintendo’s performance has been appropriately measured by depicting the Net Income and Revenue, the Stock Value, the Net Profit Margin and the Earning per Share. The behavior of the consumer and the industry, the market structure, the extent of competition along with the core competencies like innovativeness, marketing and attractive game designs provide ample scope for evaluating Nintendo’s performance. Financial difficulties need to be overcome. Market to a lifetime consumer should be the target. For Mario game, aim should be to capture consumers of 28 years of age by redesigning it. The Nintendo Revolution is ideal at the moment. Price of the new console should be $ 200 which is much lower than others. This low cost will reap benefits of market domination thereby