Submitted by: Submitted by dbhangre
Views: 840
Words: 1908
Pages: 8
Category: Business and Industry
Date Submitted: 08/19/2011 10:46 PM
Answer the following questions in relation to Xbox1 case:
Lee, Hau; Hoyt David W. and Holloway, Chuck. (2006). “Evolution of the Xbox Supply Chain”,
Stanford Graduate School of Business.
• Who are the various stakeholders for Xbox that formed the Microsoft ecosystem while
developing the supply chain business strategy for Xbox?
• What were the challenges faced by Xbox when it first launched Xbox?
• How did this compare to the launch of Xbox 360?
• Did they consider any changes in the supply chain?
Xbox Stakeholders
In 1999, Microsoft believed that gaming consoles posed a threat to the performance of the home
PC market. In response to this threat, the Microsoft’s Xbox project was started by a group of
gamers. The Xbox project consisted of both internal stakeholders – which included the Microsoft
employees (e.g., Xbox project team, Microsoft executives) and shareholders – and external
stakeholders – among these were Microsoft’s suppliers (e.g., Intel, Nvidia), contract
manufacturers (i.e., Flextronics, Wistron Corp, Celestica), game developers, designers (i.e, Astro
Studios), distributors, broadband providers, retailers and customers. The external stakeholders
can also be visualized in terms of their position in Microsoft’s extended supply chain
Challenges with Original Xbox
Microsoft encountered many challenges when launching the original Xbox in 2001. To better
understand these challenges, we adopt the SOSTACTM (Situation analysis, Objective Setting,
Strategy, Tactics, Actions and Control) framework developed by Paul Smith to summarize the
Supply Chain Management (SCM) strategy.
Situation
Analysis
Microsoft did not have a presence in the gaming console market and was up against strong
competitors which already had established markets such as Sony (Playstation) and Nintendo
(GameCube). This competitive landscape put them in a position wherein the company needed to
develop a product which offered features that were comparable to...