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SAF criteria

Nintendo can decide to pursue a pricing, quality, or innovative strategy to enhance its competitive advantage.

Figure 1: pricing strategy

Pricing Strategy
Suitability
  • Pricing strategy will address the key opportunities and constraints Nintendo faces. A lower price can be achieved by utilizing less expensive components, and the end product will be affordable to a wide range of customers
Acceptability
  • The proposed strategy will be able to meet the expectations of stakeholders due to its ability to achieve increased sales.
  • The level of risk is acceptable
  • The likely returns are also acceptable
Feasibility
  • This strategy has worked in practice and can work again for Nintendo
  • The components required to achieve this strategy are widely available.

Figure 2: Quality strategy

Quality Strategy
Suitability
  • The quality strategy will not address the key opportunities and constraints Nintendo faces. Higher quality will only mean that the final product is expensive and therefore not affordable to the majority
Acceptability
  • The proposed strategy will not be able to meet the expectations of stakeholders because of its likelihood to reduce sales.
  • The level of risk is not acceptable as the company does not have other divisions that can make up for losses
  • The likely returns are also acceptable owing to the nature of competition
Feasibility
  • This strategy has worked less for other companies such as Sony and may not work for Nintendo
  • The components required to achieve this strategy are too expensive

Figure 3: Innovative strategy

Innovative Strategy
Suitability
  • This strategy will address the key opportunities and constraints Nintendo faces. Higher sales can be achieved by utilizing less expensive but attractive components
Acceptability
  • The proposed strategy will be able to meet the expectations of stakeholders due to its ability to achieve increased sales.
  • The level of risk is acceptable
  • The likely returns are also acceptable
Feasibility
  • This strategy has worked in practice and can work again for Nintendo
  • The components required to achieve this strategy need to be carefully developed

According to the analysis above, the best strategy that Nintendo should pursue is an innovative strategy, as it may incorporate the pricing strategy.