Possible Contents

Introduction
Problems of Xbox360
External Environmental Scanning
Steep Analysis
as!" Industry Specific#
Porter$s five forces#
Strategic %roup &aps
Competitive Profile &atrix
Internal environmental scanning#
'alue C(ain analysis#
)unctional Analysis#
Situation Analysis
External )actor Analysis Summary
Internal )actor Analysis Summary
Strategic )actor Analysis Summary *S)AS+
Strategic alternatives
,-S &atrix Analysis#
.ecommendation

I/.,01CI,/
&icrosoft2 one of t(e most 3ell !no3n companies around t(e 3orld 3as found by 4ill %ates
and Paul Allen on April 52 6789: &icrosoft (as been dominating t(e soft3are mar!et since
years and no3 it is !no3n as t(e 3orld$s largest soft3are ma!er: &icrosoft entered t(e
gaming console mar!et by launc(ing its first game console Xbox bac! in /ovember 692
;006: Even t(oug( &icrosoft (as a (uge fan follo3ing and a great brand image Xbox could
not grab a large portion of t(e mar!et s(are as it 3as already being con<uered by Sony$s
Playstation ;: Xbox 3as t(e first gaming console 3it( a built in (ard dis! drive and ot(er
exciting features: 4ut due to t(e delay of launc( after Sony2 Xbox lost a (uge portion of t(e
mar!et to Sony: (erefore t(ey planned to launc( t(eir second video game console Xbox
360 one year a(ead of t(eir .ivals Sony and /intendo: As predicted Xbox 360 3as able to
grab a (uge mar!et s(are for its distinct features li!e =0 0'0 playing capabilities2 X4,X
live etc:
&icrosoft did not ta!e <uality into consideration rat(er t(eir top priority 3as cost
minimi>ation2 t(erefore t(ey outsourced t(e production of Xbox 360 to t(ree C(inese
companies: (ey also did not use t(eir traditional micro c(ip used in Xbox2 rat(er t(ey used
one manufactured by a ai3anese company: -(en &icrosoft too! t3o years to launc(
Xbox2 but t(ey only (ad 67 days from t(e starting day of production till t(e launc( 3(ic(
created early s(ortages as soon as it 3as launc(ed: &icrosoft also did not c(ec! Xbox 360
t(emselves before t(e launc( 3(ic( resulted in (ard3are failures: Initially t(ere 3as no
problem 3it( t(e console2 but gradually most of t(e users started facing problem 3it( t(e
product: (e problem 3as ?(e .ed .ing of deat(@A 3(ic( 3as a red ring of lig(t around t(e
po3er button: -(en t(is lig(t is displayed t(e console stops 3or!ing immediately after t(at:
%radually sales of Xbox 360 fell compared to PS3 and -ii: It started to face losses for Xbox
360 3(ere &icrosoft predicted to lead t(e mar!et 3it( t(e product:
(e problems occurred due to poor t(ermal design and scratc(ed dis!s: &aBor design fla3s
caused failure of t(e console: (oug( t(ere 3as 3arranty for it2 repairing 3as not solution for
it: An online survey s(o3ed t(at 97C of t(e users experienced at least one Xbox 360 failure:
After facing all t(ese problems2 t(ey are no3 trying to start again 3it( t(e product by offering
free repair service including free s(ipment c(arge: -it( t(ese 3arranty offers t(ey are trying
to attract consumers to gain buy Xbox 360:
P.,4DE&S ,) X4,X360
/eglecting t(e minor problems2 t(e fe3 3(ic( is t(oug(t to (ave affected Xbox 360$s failure
are#
6: ,nly 67 days from production date to t(e launc( day causing a preAmature launc( 3it( no
testing and debugging:
;: ,utsourced production to C(inese manufacturers and use of ai3anese &icroc(ip
caused t(e fla3 in design of Xbox 360: