Question 1: what was the strategic advantage to microsoft of outsourcing xbox production to flextronics question 2: what were the risks associated with outsourcing to flextronics did microsoft mitigate these risks. What are the strategic advantage to microsoft of outsourcing xbox production to flextronics more questions what would be the strategic intent of a consulting and outsourcing firm in a developing economy. The strategic advantage to microsoft of outsourcing xbox is to manage manufacturing and logistic capabilities to make the xbox itself and to manage a global supply change flextronics also sells computer hardware and the products represent a much smaller part of the company's overall revenues. What was the strategic advantage to microsoft of outsourcing xbox production to flextronics what were the risks associated with outsourcing to flextronics. Another strategic choice took by lego in order to maintain its status of toy leader, was to start outsourcing almost all of its production activities as the industry's trend dictates 2) what are the key considerations when outsourcing or off-shoring production.
Since both of microsoft's ems suppliers had already been working at capacity, they contracted with a third ems supplier, celestica celestica began production in a new facility in china a year after launch to provide additional capacity and take advantage of the cheaper materials available in china. Solectron, flextronics and other outsource development manufacturers that microsoft has many years managing to retailer and channel forecasts, and aligning each of these company's outsourcing manufacturing operations with microsoft's supply chains. The case chronicles microsoft's difficulties with the xbox 360 home video game console microsoft launched the xbox 360 one year ahead of the competition, and used its advantage to gain a solid lead in the market for next generation video game consoles.
1) outsourcing is the practice of transferring a firm's activities that have traditionally been internal to external suppliers true 2) outsourcing is the practice of moving a business process to a foreign country but retaining control of it. Xbox case analysis gm598 microsoft-outsourcing xbox production case study 5 october 2011 1 what was the strategic advantage to microsoft of outsourcing xbox production to flextronics. The vast majority of the production took place in the danish and us sites, while roughly five to 10 per cent of the lego group's total production was outsourced to chinese contract manufacturers 15 with the new strategic direction of achieving a lighter production portfolio, however, the company started to look for external partners to.
Flextronics exceeded microsoft's expectations in its global team support to microsoft's kinect launch, which represents significant value to microsoft flextronics has built millions of kinect devices since the start of mass production. Microsoft has simply outsourced their manufacturing nowadays, outsourcing companies have become specialists in a multitude of services for manufacturers including design, production, assembly, and distribution. Microsoft has a lot to gain from outsourcing the xbox production to flextronics microsoft's core competency is producing software, not hardware so by the law of comparative advantage, it is best for microsoft to let someone, who is good at producing hardware, produce the xbox. Flextronics international ltd (flextronics) provides electronics manufacturing services to original equipment manufacturers (oem) it also provides supporting supply chain services, including packaging and transportation throughout the world, as well as design and after-sales. 16 global production, outsourcing, and logistics int roduct ion st rat egy, product ion, and logist ics where t o produce the st rat egic role of foreign fact ories out sourcing product ion: make-or-buy decisions managing a global supply chain learning object ives aft er you have read t his chapt er you should: explain why production and.
The major strategic advantage to microsoft via outsourcing xbox productin to flextronics was that flextronics had the capability to produce xbox at a lower cost and better quality as compared to microsoft's inhouse capabilities and thus, such outsourcing allowed microsoft to exploit the strengths of flextronics, instead of utilizing its own. What was the strategic advantage to microsoft of outsourcing xbox production to flextronics q : right to maintain health care benefits a group of jobs having the same basic nature of work but requiring different levels of skill, effort, responsibility or working conditions are known as. In closing, it is obvious that microsoft would be able to obtain the competitive advantage of entering the video gaming market with using flextronics for the production of the xbox references case study: microsoft: the outsourcing of xbox production. Gm 598 case analysis: microsoft outsourcing xbox production 1 what was the strategic advantage to microsoft of outsourcing xbox production to flextronics microsoft lacked the manufacturing and logistic advantage for microsoft was that they outsource assembly and significant logistics functions to flextronics.
0 votos positivos, marcar como útil 0 votos negativos, marcar como no útil ib assignment. What was the strategic advantage to microsoft outsourcing xbox production to flextronics 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. What was the strategic advantage to microsoft of outsourcing xbox production to flextronics 2 what were the risks associated with outsourcing to flextronics.
Microsoft and flextronics work together 564 words | 2 pages minute microsoft decided to enter the video game market with xbox gaming executive, it forced them to make a strategic decision if they want to produce the xbox itself or outsource the xbox's manufacturing. Microsoft has access to information about flextronics regarding production schedules, inventory, and product quality conclusion microsoft trusted flextronics with the xbox production because the two companies had a good relationship and has worked with each other for years. Assignment help other subject case discussion questions-1 what was the strategic advantage to microsoft of outsourcing xbox production to flextronics.
Without flextronics, there would be no xbox - only the idea of it microsoft has a ton of money, but if they had to build factories, they wouldn't have done this project, says flextronics chair. Flextronics has landed close to the entire manufacturing batch of the xbox one orders from microsoft, the company will take about 90% of the orders - with foxconn electronic picking up the remaining 10%, reports to digitimes, citing sources with insight. 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.