E-Commerce

Nintendo uses B2B e-commerce for direct materials as well as MRO (materials, repairs, and operations), but they most use MRO. Nintendo recently started using outside help to produce their gaming consoles. The high consumer demand for the wii caused Nintendo to outsource to match the demand of the wii. Nintendo relies on companies such as Sunplus Technology, Winstron Corp., Foxxcon, and Life-On Plans to produce components (power sources and control-chips) of the Wii console. So Nintendo uses B2B e-commerce to buy components to mass produce the Wii console. Nintendo will probably also use outside companies to mass produce the new portable handheld console, DSi. Nintendo is attempting to strike back at Apple for trying to enter the hand-held market by launching their newly upgraded DS portable hand-held console. The DSi has a slightly larger screen then the DS Lite and it’s also thinner weighing less than the DS Lite. The DSi has improved it’s audio, giving a more crisp sound. The new features of the DSi is SD memory card slot, built-in web browser (Opera), and a built-in .3 megapixel camera. These new features allow users to download games from the DSi shop and store them on the memory card. Users can also take pictures and view them on the wii. These new technological features allow Nintendo the opportunity to take advantage of B2C e-commerce by making it easier to conduct business via the internet. Digital delivery purchases is one way B2C e-commerce is used through the DSi shop. Shop Nintendo also uses another way to use B2C e-commerce through the shopping cart feature, which keeps track of the items the costumer plans on purchasing while they still brows through the online catalog for products to purchase, just by the click of a button.

http://www.forbes.com/technology/2008/10/02/nintendo-dsi-ipod-tech-personal-cx_mji_1002nintendo.html

Marketing Mix

Nintendo's marketing mix includes: registering with search engines such as Google, You Tube and Yahoo, online ads and viral marketing. When launching the Wii, Nintendo focused on its target audience of age 25 and older. Nintendo uses TV advertising to reach and expand its gamer audience. Nintendo also made agreements with Cruise Lines, who help them introduce Wii to older audience. Nintendo of America's president and COO, Reggie Fils-Aime said about its marketing plan "It's going to be massive amounts of hands-on activity, as well as showcasing exactly how Wii games are different. We're going to create advocacy. We're going to make it so that everyone who tries the Wii experience talks to their friends and neighbours."

Payment System

Nintendo shop has a feature called a digital wallet that allows it’s customers to setup an account with them, which keeps track of their credit card information and all their transactions with Nintendo. All the customer has to do is just log in and their billing information is filled in the respective boxes to purchase their products.