Advantages and disadvantages of maintaining shortages

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Shortages at Nintendo - A well-designed strategy or an ineffective supply chain?

Consumers vividly remember the chronic shortage of Nintendo Wii consoles soon after its launch, which, in part, created its mystique. A similar scenarios played out when WiiU was launched several years later. Some industry analysts and supply chain experts claim that the shortages were part of the deliberate strategy to increase the product desirability.

1) What are the advantages and disadvantages of maintaining shortages?

2) Argue either in favor of or against a deliberate shortage strategy, such has Nintendo has experienced in the past? Do you think that such a strategy can be effective and viable over time? Why / Why not?

3) With increasing sales of competing devices, is Nintendo well-served by a shortage strategy? Why / Why not?

Reference no: EM131428636

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