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Sony, Microsoft, and Nintendo Report (Assessment)


Concepts and Theories

Marketing concepts encompass the processes and strategies an organization employs to achieve its goals. These strategies depend on the needs of the target market and the level of competition in the market. In order for an organization to meet its organizational goals, it should be able to satisfy the needs of consumers more effectively than its competitors do.

To remain competitive, technology companies employ the customer orientation approach whereby the company focuses on consumer demands and produces products to meet them. This means that all the strategic marketing decisions rely on the needs of potential consumers.

A company can also employ a market change identification approach whereby its products are tailored to meet changing consumer needs. In addition, technology companies also employ product innovation approach whereby the new products made are convenient and user-friendly.

Evidence and Analysis

In this case study, the three companies, Sony, Microsoft, and Nintendo have employed different strategies to remain competitive. Nintendo strategizes to attract more customers included improving its Wii games such that users can access older Nintendo games online through Connect 24, which also provided other value added services to the consumers.

Other than the Wii, the company’s other products like the DS, DS Lite, and Game boy satisfy diverse consumer needs raising its market share to 55%. Additionally, Nintendo undertook to diversify its sales to include software in addition to the game consoles; a strategy different from those used by the other competitors, Microsoft and Sony.

Sony employed product innovation approach to compete effectively in the video game market. Cutting edge technology incorporated into the Play station 2 introduced in 2001 makes it more appealing to the young population than the Super NES system produced by Nintendo. Sony also incorporated more game categories into its Play station 2 giving it a competitive advantage over the other video game companies. Block buster game titles produced for the play station made Sony’s play station more appealing to older gamers.

Microsoft’s 2001 introduction of home entertainment division that included the X box was successful because the company incorporated other products making it the most advanced game console in the industry by then. The company also produced appealing game titles like the Age of the Empires III that became popular with the consumers. In addition, the company diversified its offerings to include TV programming in order to meet the changing consumer needs.

Implications

Nintendo’s product-based approach of diversifying its products to include both the game systems and video game software increased its revenue to $840 million in 2006. Its products also targeted children producing game systems that are easy to use raising its market share to 55% in the same year. Its innovations like the Nintendo DS targeted market segments ignored by the other players.

Sony’s product-oriented approach ensured that the technology used in the Play station was unrivalled resulting to more than 100 million Play station consoles being sold in 2001. The inclusion of entertaining blockbuster games in play stations also contributed to success of the company. Microsoft’s strategy of relying on consumer research to produce consumer-tailored products coupled with innovations like mobile gaming, Business software and MSN online services generated revenue of $ 44.3 billion in 2006.

Conclusion and Recommendations

For a company to acquire a greater market share especially in the technology industry, consumer-oriented approach is important. Microsoft depended on consumer research to develop products that meet customer needs while Sony employed innovative technology ensured unrivalled video games.

Nintendo on the other hand diversified its products to cover large market segments. To obtain a competitive edge over other players in the market, a company should employ strategies that involve use of new technologies and diversify the products offered with the aim of meeting the needs of the consumer.

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IvyPanda. (2020, July 3). Sony, Microsoft, and Nintendo. Retrieved from https://ivypanda.com/essays/case-study-sony-microsoft-and-nintendo/

Work Cited

"Sony, Microsoft, and Nintendo." IvyPanda, 3 July 2020, ivypanda.com/essays/case-study-sony-microsoft-and-nintendo/.

1. IvyPanda. "Sony, Microsoft, and Nintendo." July 3, 2020. https://ivypanda.com/essays/case-study-sony-microsoft-and-nintendo/.


Bibliography


IvyPanda. "Sony, Microsoft, and Nintendo." July 3, 2020. https://ivypanda.com/essays/case-study-sony-microsoft-and-nintendo/.

References

IvyPanda. 2020. "Sony, Microsoft, and Nintendo." July 3, 2020. https://ivypanda.com/essays/case-study-sony-microsoft-and-nintendo/.

References

IvyPanda. (2020) 'Sony, Microsoft, and Nintendo'. 3 July.

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