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Microsoft company Outsourcing Xbox 360 system Production

 Microsoft Freelancing XBox Production Essay

п»їMicrosoft Outsourcing techniques XBox development at the end of Chapter sixteen Case Conversation Questions

1 ) What was the strategic advantage to Microsoft company of outsourcing techniques Xbox development to Flextronics? The ideal advantage that Microsoft offers is that this can be a primary organization that is used to develop software. The company also sells computer hardware and the products stand for a much small part of the industry’s overall earnings. When considering if to produce the Xbox in house or to use outsourcing for, the company hand picked the latter approach. Microsoft was able to continue to focus on its key business although allowing one more company, Flextronics, which has experience in owning a global source chain, to manage production. installment payments on your What had been the risks connected with outsourcing to Flextronics? Would Microsoft reduce these dangers? Do you think Microsoft company would have recently been better off producing the Xbox itself?: Raise the risk associated with outsourcing to Flextronics is the firm makes the decision to use outsourcing for; it gives up control over the availability process. Hazards also included a timeliness, quality, and so on will end up the responsibility of another organization. Microsoft chose to outsource Xbox 360 system production, the business chose to work together with Flextronics, which usually it had a good history with. These elements combined with Flextronics advantages inside the global supply chain supervision area create a strong advantages of Microsoft's outsourced workers decision. Ms would not had been better off making the Xbox itself. 3. How performed Flextronics' professional park approach enable the organization to respond to national within relative factor costs? Under Flextronics' industrial park strategy, key suppliers were needed to establish all their operations close to a Flextronics assembly herb in low-cost locations nearby the customer's end market. This strategy facilitated just-in-time inventory systems and lowered transportation costs, and also avoided the break-downs.

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