Xbox Supplychain Case

Case Introduction

In Nov 2001, Microsoft wants to capture commercialise share in the video gaming industry with soothes that had substantial increase in performance for gamers with the plant of Xbox. Analysts had estimated that Microsoft had lost a substantial hail of money in this venture. According to the case, 2 factors became critical to the advantageousness in the console business – driving costs buck and game sales.

In the next generation product, Microsoft realizes that the console is flat a valuable channel for the players through the Internet, including access to some other services and products. Microsoft is looking at the future of gaming with the orbicular community using broadband Internet access. For Xbox360, they need to consolidate their first mover advantage for Network gaming. They need to launch the product globally whilst keeping the costs in the find out chain down. The strategy shifts from having best performance console in the market to low cost, fast mover strategy to cleave the “Xbox360 gaming experience” quickly to the market to capture market share.

Games developers are likely to develop games for the first mover and conciliate the games for the rest, which could compromise the gaming experience for the laggards, unless there are reinvigorated games (like in the case of Wii).





Microsoft now intends to launch their new console a year ahead of Sony.

What supply chain changes did Microsoft make between the Xbox and Xbox 360? What was the motivation for these changes?

To compete for market share against Sony, Microsoft needed, firstly, to subvert down business cost. There is a need to restructure its supply chain towards an efficient chain rather than a responsive chain. As a result they decided to turn the production in China to enjoy low tug and setup cost. On top of 2 existing manufacturers, Microsoft overly contracted a new 3rd EMS, Celestica, to increase production capacity of Xbox360. It helped Microsoft to gain economies of...If you want to get a climb essay, order it on our website: Orderessay



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