Nintendo Case Study Example | Topics and Well Written Essays - 750 words

Nintendo - Case Study ExampleWith that approach, they were adequate to streamline promotion and advertising into a single and consistent message. On the other hand, Nintendo was emphasizing on selective specialization, whereby they targeted both children and hardcore gamers. This kind of approach created confusion among Nintendos customers, because the two segments of the market had unlike needs that called for different messages in the advertisements for each segment. Customer satisfaction was, therefore, not achieved, and Nintendo needed to address that recognize in order to reclaim its market shell out.Analysis of Case DataThe main cause of the consequence was Nintendos failure to invest in new technology. Key customers in the video game pains are in two categories nontraditional children or teenagers, and the 18-35 year old serious gamers. The industrys profits and revenues are realized from the second group that spends huge amounts of money and time sharpening their skills. Further more(prenominal), they are tech-junkies, an conniption that Sony and Microsoft noticed. They targeted the segment and created games with high-speed, powerful processors. From the number of Playstation units sold, it can be determined that Sony managed to reach the target group. 120 one thousand million Playstations were sold by Sony, compared to only 20 million GameCubes by Nintendo. Data on market share shows that Nintendo was steadily dropping. Alternative Solutions The circumstances facing Nintendo dictated two major alternatives either fight the rivalry to get back its market share or shift concentrate on to other markets and avoid coach competition. If they chose to fight, it would have meant putting emphasis on hardcore gamers like Sony and Microsoft, and then attempt to beat them in performance terms. With the high cost of essential components in the manufacture of high performance video games, Nintendo would be forced to sell at a loss. Furthermore, their child ren-friendly themes was disadvantaged against the new market of M- yardd and violent games. The other survival was to focus on a different market segment that was not creation served by Sonys PlayStation or Microsofts Xbox. Determining and Establish Key Decision Criteria Key decision criteria should be base on a firms advantage in a segment, competitive environment, profitability, growth rate and size (Rusetski 211). These should be supported by an understanding of demographic trends, the significance of market segmentation and the uncertainties that are associated with a change of market targets. Viewing the market differently, it is possible to identify several other vary segments. Nintendo was able to identify the day-by-day and hardcore gamers. From the two available alternatives, Nintendo can either invest more and fight for the hardcore segment that seems to be setting the trend in video games, with the risk of refinement up in more losses or take yet another risk and fo cus on the casual segment and the sub-segments found within the category, which also risks a re-launch failure. However, the casual segment provides a wider market that includes families, seniors, women and children. Evaluation of the Alternatives While the pres certain(predicate) from the competition seems minimal in the casual segment, there is incertitude in profitability, growth rate and size, even with Nintendos image being family-friendly. This is because it cannot be known for sure whether the video game adoption process has reached a point of early and late majority buyers being ready to be members of the gaming society, yet they make upto 65 percent of the market. In the same way, the casual segments growth rate is not known. The greatest risk lies in the segment