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Sample Case Study Paper on Xbox

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Sample Case Study Paper on Xbox

Xbox faced competition from Nintendo and Sony. The company started to lose the market share for Xbox with the introduction of Nintendo Wii and play station.

Competitor’s Analysis

Destructive strategy taken by Sony was the main reason that led to the failure of Xbox console. The first strategy Sony undertook was reducing the prices of its games. This forced Microsoft to withdraw its console from the market. In addition, Sony engaged in pre-advertisement promises of amazing console to be introduced as an attempt to attack Microsoft Xbox 360 console. Xbox fell short of meeting high expectations standard promised by Sony. With the introduction of Xbox 360 in the year 2005, Microsoft’s goal was to dominate the gaming market in the world. Moreover, it was faced with great competition from Nintendo Wii and Sony Play station 3, and this competition reduced the sales of Xbox consoles and Microsoft made a loss of $1.2billion in 2006. It was a big blow to Microsoft gaming consoles because it lost the market share. In 2008, Xbox recaptured the market and made a profit of $89 million. The profit realized was due to declining competition of Nintendo and Sony consoles.

Xbox 360 consoles disappointed the customers because of system failure that they experienced with the red ring of death. This was devastating to Microsoft’s adventure because it led to customer dissatisfaction and freight. From the year 2006, Nintendo Wii and Sony play station dominated the market due to their competitiveness. Failure by Xbox 360 led to tarnishing of Microsoft’s name in the gaming consoles. Microsoft continued making losses due to the negative image that was contributed by introduction of Xbox 360. In order to restore a good image for Microsoft; it is required to collaborate with superior manufacturers to improve the quality of Xbox console. These manufacturers will also facilitate the production of high quality computer hardware. Therefore Planning will help overcome the challenges and reduce the possibility of failure. In addition Microsoft needs to invest highly on research on the gaming market. They also need to invest in complex computer system to avert future failures in the system. Gaming problems cannot be solved at an individual or functional level because of the technical requirement that is needed. System failure needs a lot of consultation from experienced manufacturers.

 Company Strengths
  1. One advantage is that Microsoft had a big capital base to finance Xbox despite its failure. Microsoft would apply one such weapon to scare away competitors
  2. Microsoft owns most video games that are leading in the entertainment market
  3. Video game presents an opportunity for leading the entertainment market to the Microsoft Company. As such, Microsoft will make money from the entertainment industry in the future.
Company Weaknesses
  1. Microsoft first weakness was attributed by the quality of computer hardware
  2. The company has simple and low quality computer hardware unlike their competitors who apply complex quality computer hardware
  3. The third and main reason why Xbox 360 failed is system failure. It therefore means that Microsoft has to upgrade the system in order to restore its market share, confidence and competitiveness in the gaming market
  4. The biggest challenge Microsoft is facing is the growing competition from Sony. Sony reduced the price of its consoles and provided free accessories to its customers. This intensified the competition and it has as a result led to Sony emerging the sole provider of high-definition movies. Sony used blue-ray drive to provide high-definition movies.

 

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