Xbox case Write-up
You are expected to develop a coherent essay that presents solutions as well as arguments and evidence (e.g., data) to support your solutions. Supporting data and evidence should only come from the case rather than external sources (e.g., newspapers). Exhibits in the case are usually good sources of supporting evidence. Internet browsing is not allowed! Feel free to use bullet points to organize your arguments and logic. Your essay should be no more than 2single-spaced pages with 11-point front (exhibits and tables do not count towards your page limit.
1. Make sure to answer all of the discussion questions below.
2. ONLY USE CASE, do not find external resources.
3. Make sure to use data to support Every answer, calculate data from the case is preferred
4. Do not just explain it in words, every answer needs data.
4. Develop your framework and arguments, Do not just repeat what in the case.
- Evaluate the attractiveness of the video games consoles industry prior to Microsoft’s entry. Is this an attractive, moderately attractive or unattractive industry for Microsoft to diversify into? Explain why.
- Evaluate Microsoft’s resources, capabilities etc. and whether those will allow it to do “well” (i.e., whether it will win) once it enters the industry. You may use any of the internal analysis tools we have discussed in class (and in the textbook), such as the resources and capabilities framework (VRIN), its strengths and weaknesses pertaining to its resources and capabilities in this new industry, or a value chain analysis (or all three).
- Evaluate the long-term profitability of Microsoft in this new industry. What is likely to happen to this industry after Microsoft enters? Here you can evaluate the financial forecasts of Microsoft and in the industry, consider retaliation by competitors, how the industry structure changes favorably or unfavorably, or do some sensitivity analysis on the financials and profitability forecasts.
- Given your analysis above, was Microsoft’s decision to diversify (enter) into the video games console business a good decision or not? Take a definitive stance (yes or no)
Make sure you meet all the requirements above.