Coursework Assignment Example | Topics and Well Written Essays - 2000 words

Coursework - Assignment Example Highly technology driven companies, both Nintendo and Sony have invested heavily in e-commerce activities which is quite apparent from their websites. Through their websites, both the companies facilitate their user relating to the placing new orders, acquiring customer’s feedbacks in order to enhance their services and also using it as a plat form for releasing new products and features. The report presents an analysis of both the companies in terms of operational and marketing strategy, what models they have adopted in order to generate revenue, striking marketing tactics and methods as portrayed in the websites of the both the companies. Competitor Analysis The method used in the competitor analysis of the Nintendo (Wii and Nintendo 3DS) and Sony (Playstation) is the Michael Porter’s five forces model. According to the model, there are five forces prevailing in the market which affects the competitive rivalry between the components. The analysis assists the companies in identifying the factors keeping which into consideration the company can devise its marketing and operational strategy. This model gives importance to the financial as well operational aspects of a business and sets criteria according to which the company can assess the activities of its competitors and counter them through effective and efficient management. The five forces according to the Porter’s model are as follows [2] The bargaining power of the customer can be regarded as the influence that the consumer base has on the pricing strategy of the company. Currently the Playstation and Nintendo 3DS are sold at prices $399 and $249 respectively. Since Playstation offers a more advanced and high tech gaming experience thus its prices are steeper as compared to its competitor. The fact that bargaining power of customer can cast significant impact on the profitability of the company can be corroborated from the fact that initially the Playstation was sold considerably belo w its per unit cost, causing a significant decline in the profitability of the company. In order to justify their demand prices, both the companies must communicate with their consumer base and make them aware the latest add-ons the product comes with and assuring them that the prices are justified. This requires innovation and smart marketing tactics. Suppliers of both the companies are the companies providing raw material for the manufacturing of the product. Software houses can also come under this category as they provide important technical expertise in devising interactive user interface. Bargaining power of supplier means that the supplier wants to obtain benefits through increased prices of raw material, reduction in the credit terms etc. This can also affect the financial outlook of the company with increased cost of goods sold and reduced profit margin. Other factors which the model takes into account are the threat of new entrants into the market and threats of the substi tute products. The biggest competitor of Playstation in the console gaming market is the Microsoft’s product ‘X-box 360’ which also offers high tech gaming experience. As per the Nintendo president Satoru Iwata said that the battle with Sony is over — referring to that the Wii has won over the PS3 — and that the new enemy is Apple, with its ever expanding mobile lineup. [3] Both the