Evolution of The Xbox Supply Chain Case Study

 

 

Write-up needs to be 4 pages.

You have been hired as a consultant to Microsoft (and paid big bucks!) to help evaluate their current and design their future supply chain strategy.

1. (20 points) As a software company, Microsoft does not have their own factory, and only limited supply chain talent from WPC (who needs those in a software company?), but the company has gathered an ecosystem of partners to help build the first Xbox supply chain (2001). Those partners include Flextronics, Nvidia, and Intel. You can assume they used 3PL distributors in US and Europe, their primary markets. You can also assume their customers are retailers like Best Buy and the products are not sold online.

Describe the supply chain strategy of the first Xbox in terms of:

• Strategic objectives of Microsoft
• Customer Value Proposition
• Product characteristics (innovative vs functional characteristics)
• The effects of cost, demand uncertainty, economies of scale, lead time, committed response time, and degree of flexibility

2. (20 points) What changes were made to the supply chain for the Xbox 360 and why?

Describe the changes made to the supply chain strategy in terms of the same four bullet point items in question 1.

3. (20 points) Map the new Xbox 360 supply chain strategy using a Business Model Canvas. Use the Business Model Canvas Framework introduced in this module to map how Microsoft built its new supply chain to align with the customer value proposition and the single sales channel (e.g. retailer, Best Buy). You do not need to complete the Revenue and Cost Structure sections, as we will cover this in the Supply Chain Finance module.

4. (10 points) Intellectual property (IP) ownership is an important consideration in a supply chain strategy. How was IP built or not built into each of Microsoft’s supply chain strategies?