Question

The text discusses strategic trade-offs that are different between Walmart and Nordstrom even though they are in the same industry. Think of another industry that you know fairly well and select two firms there that also have made very different choices for these trade-offs. Describe some of the differences between these firms. What type of trade-off decisions have these firms made?

Answer 1

Solution:

I have selected Nintendo and Sony as the 2 companies to compare their tradeoffs policies based on their gaming devices as the product of choice. While Sony works towards creating an all-round experience for the people in the terms of creating their game consoles, based on the needs of the players to have a product capable of the best graphics possibility at an affordable price, Nintendo focuses more on the playability factor and the connection their customers have with their brand more than the factor of pricing and placement and as a result, they both have different categories of customer and game players which use their product.

Nintendo focuses on gameplay itself and the environment that supports it while providing hardware capable to achieve the bare minimum requirements while song's product essentially provides the best possible hardware at the price point, allowing them the factor of future upgradability and utilizing the difference in requirements to their advantage, both have tradeoffs with cost, market segment and approachability.