Business Strategy Essay Example | Topics and Well Written Essays - 750 words - 5

Business Strategy - Essay Example Since these technologies are patented, they become a vital resource to Nintendo. Since for the current they are inimitable, they provide a competitive advantage to the company. A major weakness in Wii as described in the case is its poorer graphics as compared to those of its rivals—Xbox and Sony Playstation. This is due to the absence of high-definition video players that come with Wii’s two major competitors. Porter’s three generic strategies include overall cost leadership, differentiation and focus (Bartol 2001, 239). These three strategies require certain skills and resources as well as organizational requirements in order to be executed well. When a firm pursues overall cost leadership, the company should be ready to embrace efficiency as its objective, as reflected in its systems in order to maintain its position in the market as the player that maintains the most efficient cost systems. With lower costs, companies can offer lower prices to consumers without sacrificing too much of its profits, thus getting ahead of the competition especially in the market where price is the product’s attribute that is given the most weight when considering purchase. Differentiation on the other hand makes a company take a position in the market by offering unique products, thus gaining monopolistic powers over pricing and other considerations that are related to the product. By offering unique products, a company then can then charge higher margins because of the value of uniqueness. Focus, is a combination of the two strategies which caters to a smaller bit of the market rather than the whole. By segmenting the market and focusing on a small or niche segment, unique products can be offered while keeping tight controls on costs. I see Nintendo pursuing differentiation strategy with the Wii. Although it offers the lowest of prices among competitors, it does not compete on the basis of efficiency thus the integration of all