Microsoft 1 MicArosoft Outsourcing Xbox Production Geovanna Garcia BUS25010016-200905 – International Business Environment Professor Adkins September 2009 Microsoft 2 Microsoft – Outsourcing Xbox Production When Microsoft decided to enter the video game market with its Xbox gaming console executives had to make a strategic decision whether to manufacture the Xbox or outsource the manufacturing. After some studies‚ it was decided that they did not have manufacturing and
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Case Study Analysis: Microsoft: The outsourcing of XBOX production International Business IB300 April 10‚ 2011 In summary the following case was about Microsoft’s quest to enter the video game market with its Xbox gaming console. Microsoft’s history of having a small hardware business forced Microsoft to make a crucial decision about whether it should manufacture this gaming console along with managing a global supply chain or outsource the manufacturing to a third party. They quickly decided
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Microsoft is a world leader in the PC industry and has $36.2 billion of cash. However‚ sales of PC would not last forever! The PC industry which is in its fourth decade shows signs of saturation and maturity (exhibit 13 in case). Launching XBOX allowed Microsoft to drive a revolution in digital entertainment and deliver the future of experience. The decision taken by Microsoft lead to its diversification in gaming consoles and online gaming industry. The diversification allowed Microsoft to utilize
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Contents Executive Summary 2 Introduction 3 Microsoft 3 Xbox 4 The Original Xbox 4 Xbox Live 5 Xbox 360 5 The New Next Generation – Xbox One vs PlayStation 4 5 Defining the Industry 6 Gaming Console Market Revenues 2003-13 (US$ million) 6 Revenue forecasts for 2013 7 Industry Trends 7 Loss-leading strategy 7 Innovative Technologies 7 Gaming in the Cloud 7 Rise of Indie Game Developers 8 Porter’s 5 forces analysis 8 Value Chain Analysis 9 Operations and Supply Chain 9 Distribution 10 Marketing 10
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Index Microsoft: Entering the Gaming Industry 3 Microsoft Xbox 3 The Strategy 4 Positioning 4 Pricing 4 The Result of the 1st Round 5 The Next-Gen Gaming War Announced 6 The Economies of scale What it has Learned 6 The Timing - Being the first on the market‚ an advantage? 7 Securing the Production Chain 8 Securing the Market Microsoft Innovation Breaking Through 9 Securing the Market Product Segmentation 10 Securing the Market Japanese Game Developer 11 Launching The XBOX 360
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Microsoft & The Xbox 360 Ring of Death COMM 5307 Professor: Ebarhim Mazaheri Group 5 Liuquan Wang Ning Ding Wenjun Zhou Keyue Zhang Date: Jan 22‚ 2013 ! ! Problem statements: There are two main problems in Microsoft. The first is financial problem and market share of the Xbox 360. Microsoft suffered a great loss‚ nearly $2 billion loss for the 2006-07 fiscal year‚ because of major design flaws in the Xbox 360. The second is reputation of Microsoft‚ especially for Xbox 360.
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Microsoft Xbox Xbox Outline Executive Summary Page 3 Situation Analysis Page 3 Market Summary Page 3 - 5 SWOT Analysis Page 5 - 6 Competition Page 6 Marketing Strategy Page 6 Marketing Objectives Page 7 Financial Objectives Page 7 Positioning Page 7 Marketing Mix Page 7 Marketing Research Page 7 - 8 Controls Page 8 Marketing Plan Summary Page 8 - 9 Works Cited Page 10 Executive
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What supply chain changes did Microsoft make between the Xbox and the Xbox 360? What was the motivation for these changes? Microsoft made several supply chain changes after their first experience in the game console market with the Xbox. Microsoft successfully secured a significant market share with the Xbox and expected to have higher sales with its successor: the Xbox 360. They also made the decision to introduce it a year before their main competitor‚ Sony‚ would in order to secure a large market
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and retain profitability. Microsoft ’s Xbox 360‚ shown to industry professionals at the E3 2005 expo‚ has Redmond lighting up the leader board in the game console market. High-definition games‚ free online connectivity‚ and a high degree of device and gaming personalization set the pace for where Microsoft wants to take the market. But with the unveiling of the Sony ’s more powerful PlayStation 3 and the continued huge loses from Microsoft ’s games division‚ the Xbox 360 is by no means a guaranteed
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Evolution of the Xbox Supply Chain Microsoft made several adjustments to their supply chain between the introduction of the Xbox and the Xbox 360. One of the first changes was adding a third EMS supplier‚ Celestica‚ in addition to Flextronics and Wistron. Celestica was added to increase capacity and meet predicted demand which was expected to be much higher for the Xbox 360 than it had been for the original Xbox. Also‚ in addition to Microsoft’s current engineering team‚ they attempted to further
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