1. Full Sail University
Strategic Business Management
Instructor: Margaret Cox
August 19, 2014
World Class Breed
Assignment 3 Presentation by: Ezemdi Chikwendu
Reginald Dockery
Kimeasha Drysdale
Anthony Lucas
Nathaniel Wall
Queshaon Wiliiams
2. Why should we do
this?
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Examine the issues
regarding the decline of the
Nintendo.
Examine what can be done
to improve the company’s
sales.
3. Why should we do this?
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The New York Times stated
that in 1989, Nintendo
generated approximately
$2.7 billion in video game
and system sales, which put
the company at 80 percent
of the overall market.
(Ramirez, 1989) In today’s
market, Nintendo’s
competitors have taken the
lead in the overall market.
4. Why should we do this?
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Solution to the currently
Slumping sales acquired
by Nintendo
5. What will it cost to make?
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$150 per unit.
6. What benefits will our
company receive?
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Reduced cost of production
The all-new “NFinity” brand
image.
Increased profits from the
differences of the
manufacturing cost
Raise the level of efficiency by
implementing a new level of
technology.
7. What is the price per unit?
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Retail cost: $299 per unit.
8. Projected sales profit
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$1.8 million
10. What big thing is going to happen year 2?
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Beta Testing
Hardware Refinement
Processing
Software Refinement
Processing
11. What big thing is going to happen year 3?
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Media Advertising
Gamers Showcase
Nfinity Release
EPK Release to Publishers
Why should we do this?
This presentation was established in an effort to examine the issues regarding the decline of the Nintendo and what can be done to improve the company’s sales. Nintendo at one point was the leading gaming system in the world. From the NES, to the Game Boy, Nintendo has always been innovative and successful.
Why should we do this?
The New York Times stated that in 1989, Nintendo generated approximately $2.7 billion in video game and system sales, which put the company at 80 percent of the overall market. (Ramirez, 1989) In today’s market, Nintendo’s competitors have taken the lead in the overall market.
Why should we do this?
This presentation will also provide a solution to the currently slumping sales acquired by Nintendo; the primary focus will be on what can be done to drive its sales and increase market share. We will implement a new console known as the N-Finity, which will be a sales driver for Nintendo.
What will it cost to make?
Currently manufacturing cost is approximately $180-$220 for each unit where as the product sells for $299.This price point does not include the marketing and advertising for the consoles.
This does not include other licensing that has to be paid for Wi-Fi, logo usage and built in software that Nintendo is responsible for paying out with each unit sold. Our financial development goal will be to keep manufacturing cost under $150 per unit.
What benefits will our company receive?
The benefits for the company are the reduced cost of producing the all-new “N-Finity” in comparison to the Nintendo Wii U. The Nintendo Company will also benefit from increased profits from the differences of the manufacturing cost of the Nintendo Wii U. The upgraded N-Finity console will raise the level of efficiency by implementing a new level of technology.
Other benefits will be for the consumers of the upgraded console. This proposal will give renewed life to the Wii U. It will capture the attention of gamers and create competition in the marketplace against other game systems by making this product a quantifiable asset. We predict that this new console will raise the value by enhancing the pleasures and excitement of video game players around the world.
What is the price per unit?
Based on Wii U initial sales of around 400,000 unit that will total of $60 million. Our goal is to keep the retail cost at $299 per unit.
What are your projected sales?
Based on our Projection we can net a profit of just about $59 million with addition revenue steaming from the built application that can net a profit of up to $1.8 million.
What big thing is going to happen year 1?
Year 1, We will submit the proposal, software development, Hardware development.
What big thing is going to happen year 2?
Year 2, We will conduct initial beta testing, software refinement processing, hardware refinement processing.
What big thing is going to happen year 3?
Year 3, We will begin media advertising, EPK release to gaming publishers, gamers showcase and release of the all new N-Finity.