Cournot collusion and defection
Apple and Nitendo collusion
Apple and Nitendo are joining up to have the Mario application in Apple’s iOS which is a breakthrough for Apple and strategy change for Nintendo which will introduce its characters into the Smartphone. In addition, Pokemon Go, in which Nintendo is a major shareholder, will bring its application to Apple Watch (Bishop ,2016).The company stayed away from introducing the game to Smartphone but this presented it with an opportunity to ensure that its products reach a broader market using Apple’s iOS as the marketing platform. Through this cooperation both firms are going to benefit mutually as NItondo will reach out a larger market share enjoyed by Apple products. This presents a platform where Nintendo’s expand its reach to mobile platform. Apple on the other hand will offer better experience to the users of its watches and phones. Hence, this is a case of both firms gaining from collusion. The comparison based on quality will matter little to potential customers since the difference on that basis is quite insignificant. Apple’s iPhone and Samsung’s Galaxy 7 The release of Apple’s iPhone & and Galaxy into the market present a very tough competition based on price given that the two products have very unique features (Kelly, 2016). Each of the products’ features is capable of attracting customers given that Samsung and Apple may have realized what users want. With high quality features that ensure durability, it’s left to customers to select the product with the lower prices. Given that customers will have full information concerning the prices of the product, the one offering lower prices will gain a higher market share as long as the products, quality remains constant.References
Bishop ,T.,(2016).Nintendo bringing new Mario game to Apple’s iOS, Pokémon Go coming to Apple Watch. Retrieved from: http://www.geekwire.com/2016/breaking-news-nintendo-bringing-mario-apples-ios-new-game-super-mario-run/
Kelly ,G.,(2016).iPhone 7 Vs Galaxy S7 Review: Should You Upgrade?.Retrieved from: https://www.forbes.com/sites/gordonkelly/2016/12/18/iphone-7-vs-galaxy-s7-review-should-you-upgrade/#48d0ece1471
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