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 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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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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When outsourcing done for the right reasons‚ it will actually help your company grow and save money. Here are the top advantages of outsourcing: • allows you to get the services of higher quality and/or cheaper; • improves the innovative opportunities of the company due to the interaction and partnership with world-class supplies‚ who have a great intellectual potential and rich innovative experience; • provides greater flexibility in the event of a sudden change in market conditions or consumer
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the best of times. In other words‚ the more stakeholders involved and the more diverse and disparate they are‚ the more effort must be put in to achieve effective communication and ultimate goal. McCusker is the project leader for producing the Xbox in a global manufacturing company and should reach a decision with regards to which shop-floor system to implement in the facilities as soon as possible even though there are several factors to make the decision difficulty for McCusker. That is‚ for
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Management of Organizations Individual Case Analysis Flextronics Case; Deciding on a shop-floor system for producing the Microsoft Xbox; What actions should McCuster take to reach a decision? Why should he take those decisions? Its Decision time Flextronics prides in a work culture that values fast and very decisive actions. Jim McCusker is at the epicenter of a task conflict. This group decision making process of choosing a shop floor system has to be completed and fast. Time is running
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Executive Summary Born out of the vision of two creative‚ technological supply chain trailblazers‚ Flextronics- the world’s second-largest provider of electronics manufacturing services and the largest global manufacturer of cell phones- took form. Tapping into a burgeoning market of overflow manufacturing services‚ this unique electronic visionary busted onto the technological scene‚ through its humble origins. With service offerings ranging from “stuffing” printed circuit boards‚ for electronic
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Introduction: In present-day society‚ outsourcing is playing an increasingly crucial role in international business. Globalization has offered motivation for outsourcing owing to the pressures of cost competition. (John Child‚ 2005) So organizations are increasingly turning to outsourcing in order to develop their competitiveness‚ increase profits and focus on their core business. (Steve Burdon and Ajay Bhalla‚ 2005) At the same time‚ the liberalization of trade and the development of modern information
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business‚ outsourcing engages the contracting out of a business process to another party (compare business process outsourcing). Outsourcing occasionally involves transferring employees and assets from one firm to another‚ but not always. Outsourcing is also the hold of handing over control of public services to for-profit corporation (online‚ 2016) Outsourcing is an deal in which a company provides services for another company that could also be or usually have been provided in-house. Outsourcing is a
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