Tweaked existing older technology versus
making a large investment in newer technology on the leading
? Used outsourcing not only in manufacturing but in product
development and design. But controlled the ability of licensees
to contract their own manufacturing. This is also done in built to
suit residential real estate development where a developer will
buy land, allow a purchaser to pick their own architect but
require that the developer be the builder. Another version is
where a master plan ( overall development plan) is executed in
advance in stages but the homes are very basic where buyers
purchase upgrades which are contracted for thru the developer.
This is done with home appliances where the product is
discounted and then a service contract is sold to the consumer
for a period of time beyond that provided for by the manufacturer.
The manufacturer is happy to have the retailer take over this
function although it can have bad repercussions such as with
comp usa wherer getting anything fixed is quite difficult.
? Carefully controlled number of products shipped; removed
products as they waned in popularity; focused advertising on
individual titles; controlled content (ie. no real violence or sex)
? Limited number of titles per licensee to control quality as they
reflect on Nintendo not the software producer. While this is
somewhat limiting it is also a win win in that it incentizes the
licensee knowing his titles have a better % to be hits.
Use Akklaim as an example of how they have a negative net worth.
They have added value internally and externally View More »