Operational Process
The operational process for the Microsoft XBOX starts with the Raw goods Which are mined and sent to factories to be refined. After this the materials are sent to the manufacturing facilities that put together the product and box them up for shipping. the product is coded and set for ordering once a supplier or customer puts in an order the product is then shipped by truck plane or boat to the destination. The customer will either put in an online order or large retailers will put in orders for a number of quantities. The sales department then process this information in puts in the order to the distribution centers that then ship the product.
5 Year Plan
Microsoft's 5 year plan with the XBOX platform will need to continue on the path that they have already started but to change some key elements. The Xbox division has done a great job at brand awareness which will need to continue through the next 5 years. Also the amount that is being manufactured is a steady pace and meeting supply and demand. The following are things that will need to change:
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financial increase for R&D
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exclusives for the product
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untapped markets
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Server capabilities
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larger exclusive developer pool
These changes will take time and resources but will drive the product into the direction needed to keep up with the competitors.
The increase of funds to the R&D department will help the company to create more cutting edge technology and keep the product marketable. The exclusives to the product are to keep people interested in the product and to buy it this can include games, accessories, and new tech like augmented reality. On top of this by removing the games from PC it will make it to where the customer will need to buy the product to play the games. Next untapped markets are a big interest as they are areas that the company does not have a foot in yet and can whiled an increase in income for the company. Finding areas like Burma the company and aggressively market and sell the product to earn a new revenue stream.
Adding larger server farms and updated systems to increase the power of the online gaming portion of the product will help to bring in more customers and keep the product relevant. Increasing the number of developers for the product who are exclusive will make the product more desirable to the customer. For example if the company had an exclusive with a company like Squire Enix they could get games that where only on their product.
During the first 2 years the company will see a larger amount of money going out then in due to the R&D cost and and server cost. But after the initial cost are done the profits will then come in and cost will go down since they are already in place. Over all the out come would be an increase of over 45% in the next 5 year if these actions are taken.
