Business and Management
Submitted By leuenmc
Upon immediate release of the Wii one quickly realised that once again Nintendo had revolutionized the video game industry. In a way that only Nintendo knows how they have managed to separate themselves from competitors and set out to create new markets. Their latest product is loved by consumers for the experience, price point and unique Nintendo content that it offers.
The Wii experience offers something not seen before in the industry. The immersive, motion-sensor gameplay makes the Wii unique. The product differentiation Nintendo chose has resulted from the target market Nintendo focused on. It identified and targeted groups of people who had no interest in video games. Before long the product was popular in nursing homes and kindergartens, demographics that no company in the industry once catered for. The unique experience not only “battled the difference between the indifference of people who have no interest in video games” and succeeded, it also proved attractive to innovators and early adopters. This strategy has been identified by the Journal of advertising research as a key component to rapid market penetration and high profits .
As suggested by the article energy policy late majority and laggards are categories of innovation that lack willingness to adopt new products.
The article proves that to reach these groups the innovators and early adopters must first embrace the product and that the late majority and laggards can’t be financially burdened by their purchase. Nintendo appealed to these categories by using a price penetration strategy. They brought the Wii into the market $150 cheaper than its closest competitor (Microsoft Xbox 360) and reached the mass market .
Part of the success of the Wii is the Wiimote, a Wireless motion-sensitive remote controller . Nintendo went through a heavy screening phase for the Wiimote, coming to an…...