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1. If you log onto the Nissan webpage you'll find photos of the vehicles it manufactures including the Sentra, Altima, Maxima, Pathfinder, and Murano. These vehicles have varying price points and appeal to a variety of market segments. Do you think Nissan has segmented the market as part of an offensive strategy to grow sales? Explain the logic of this offensive strategy and why the company elected to create new brand names for each segment. Nissan also manufacturers Infiniti to compete in the luxury market against Mercedes and BMW. Infiniti is not posted on the Nissan webpage. Infiniti has its own website. Why? Can you think of other companies that use a similar offensive strategy?

2. Can you think of a business that has shifted from an offensive strategic market plan to a defensive strategy market plan over the life cycle of a particular product? Why did the business switch? Do you think companies that produce fad products (e.g. pet rocks) can shift strategies? Why or why not?

3. Perhaps I'm one of the few guys in the world who has never played the EA Sports Madden football PlayStation video game! It is the top-selling video game of all-time. How would a Madden offensive strategy to grow market penetration differ from a strategy to grow customer purchases (revenue per customer) in the under-18 male gamer market? How can EA Sports meet short-run growth and profit performance targets and still invest in strategic market plans that are focused on long-run objectives with respect to share position, sales growth, and profit performance?

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Solution Summary

The solution addresses:

1. If you log onto the Nissan webpage you'll find photos of the vehicles it manufactures including the Sentra, Altima, Maxima, Pathfinder, and Murano. These vehicles have varying price points and appeal to a variety of market segments. Do you think Nissan has segmented the market as part of an offensive strategy to grow sales? Explain the logic of this offensive strategy and why the company elected to create new brand names for each segment. Nissan also manufacturers Infiniti to compete in the luxury market against Mercedes and BMW. Infiniti is not posted on the Nissan webpage. Infiniti has its own website. Why? Can you think of other companies that use a similar offensive strategy?

2. Can you think of a business that has shifted from an offensive strategic market plan to a defensive strategy market plan over the life cycle of a particular product? Why did the business switch? Do you think companies that produce fad products (e.g. pet rocks) can shift strategies? Why or why not?

3. Perhaps I'm one of the few guys in the world who has never played the EA Sports Madden football PlayStation video game! It is the top-selling video game of all-time. How would a Madden offensive strategy to grow market penetration differ from a strategy to grow customer purchases (revenue per customer) in the under-18 male gamer market? How can EA Sports meet short-run growth and profit performance targets and still invest in strategic market plans that are focused on long-run objectives with respect to share position, sales growth, and profit performance?

Solution provided by:
Jo Ann Prevetti, MBA, PhD (IP)
Education
  • Master of Business Administration, University of Phoenix
  • Bachelor of Science in Paralegal Studies, Kaplan College
  • Business Diploma, Katharine Gibbs Business College for Women
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