Strategic Business Unit Microsoft Box Revised
Strategic Analysis of Microsoft Xbox 360 Unit as a Strategic Business Unit (SBU) in the UK Market
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University College
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Executive Summary
Strategic position has been identified as an important element of strategic management in both literature and practice. An understanding of a firm’s strategic position helps in not only identifying the influence of an organization’s macro-environment and strategic capability on its strategy but also in establishing a sustainable competitive advantage in a particular market. This paper attempted to investigate the strategic position of Microsoft’s Xbox 360 as a strategic business unit (SBU) in the UK market. In particular, the paper conducted a comprehensive and in-depth analysis of Microsoft’s Xbox 360 business unit focusing on its external environment, strategic capability (resources and competences) as well as its competitive strategies. To achieve this, the paper used various business models and analytical frameworks, including strategic clock analysis, strategic group mapping, PESTEL model, Porter’s Five Forces Framework, resources/competence framework, and value chain analysis. The findings of this analysis revealed that Microsoft’s Xbox 360 as a strategic business unit has a strong strategic position in the UK market. In particular, it has been established that Microsoft Xbox 360 has been able to cultivate a sustainable strategic position in the UK’s Entertainment and Devices unit market by adopting a differentiation strategy upon the launch of its Xbox 360 flagship product in order to gain market entry and to gain differential advantage over other market players. In addition, the findings revealed that the Microsoft SBU has unique resources and competences that have given it a competitive edge over its competitors.
Table of Contents
Executive Summary 2
Introduction 5
1.0 Strategic Position of Microsoft Xbox 360 6
1.1 Competitive Strategic Position 6
Student Name:
University College
Course Title:
Instructor Details
Date of Submission
Executive Summary
Strategic position has been identified as an important element of strategic management in both literature and practice. An understanding of a firm’s strategic position helps in not only identifying the influence of an organization’s macro-environment and strategic capability on its strategy but also in establishing a sustainable competitive advantage in a particular market. This paper attempted to investigate the strategic position of Microsoft’s Xbox 360 as a strategic business unit (SBU) in the UK market. In particular, the paper conducted a comprehensive and in-depth analysis of Microsoft’s Xbox 360 business unit focusing on its external environment, strategic capability (resources and competences) as well as its competitive strategies. To achieve this, the paper used various business models and analytical frameworks, including strategic clock analysis, strategic group mapping, PESTEL model, Porter’s Five Forces Framework, resources/competence framework, and value chain analysis. The findings of this analysis revealed that Microsoft’s Xbox 360 as a strategic business unit has a strong strategic position in the UK market. In particular, it has been established that Microsoft Xbox 360 has been able to cultivate a sustainable strategic position in the UK’s Entertainment and Devices unit market by adopting a differentiation strategy upon the launch of its Xbox 360 flagship product in order to gain market entry and to gain differential advantage over other market players. In addition, the findings revealed that the Microsoft SBU has unique resources and competences that have given it a competitive edge over its competitors.
Table of Contents
Executive Summary 2
Introduction 5
1.0 Strategic Position of Microsoft Xbox 360 6
1.1 Competitive Strategic Position 6
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