The factors in favour of a rise in the Nintendo share price:
To trade on the Nintendo share price over the long term you must first be sure of the strengths of this company and its ability to maintain and boost its growth over the coming years. Here therefore is a summary of the strong points of this group that will assist you in assessing its abilities clearly.
Firstly, we can underline as a strong point the general high quality of the distribution strategy of the Nintendo Group. In fact, Nintendo manages a large distribution network that includes wholesalers and retailers. The group also possesses its own network of boutiques and distributes its products through high end retailers. Of course, Nintendo is also present on online sales networks and sells its products through numerous websites such as Amazon.
The pricing policy implemented by the Nintendo Group is another of its strengths. In fact, the group sells its products initially at a high cost then lowers its prices progressively to match those of its competitors. This policy, generally known as the ‘skim strategy’ is one of the foundations for the brand’s success.
Still from a strategic point of view, we also note the marketing methods of this group that have managed to create a real ‘need’ in its consumers although the games it develops and sells are not exactly essential items. This success is achieved through a well honed marketing and communications strategy.
The Nintendo Group also reassures its investors by supplying information on its long term prospects which is not the case with its principal competitors which only tend to look at the short term projections. Due to this fact, Nintendo heavily invests in research for its products to obtain high customer satisfaction and also concurrently favours superior customer relations.
In 1959 the Nintendo Group also concluded a partnership agreement with the Disney Group. This strategic agreement had the objective of appealing to a new clientele, children. This partnership in fact enabled Nintendo to use certain Disney characters on the company’s products thereby increasing the popularity of the brand and penetrating the household sector.
To conclude, the Nintendo company benefits from a reputable brand image as a company that cares about its employees particularly in terms of salaries that are generally higher than its competitors.