Big Picture Question Imagine that you are applying for a job as a consultant for Big Picture Strategy, Inc, a strategic management consulting firm located in San Francisco. As part of the interview process, they provide you with the description below and ask how you would go about analyzing the situation faced by ZIP and what recommendation you would ultimately make regarding ZIPs best direction for the future. Read the description and then identify the things you would consider in terms of the Environment faced by ZIP, their current Strategy, and their current Business Capabilities. In each area, identify what you can about the key factors to consider (based on the description and your general knowledge) as well as what additional information you would like to have. Then, make an initial determination of the current FIT for ZIP between ESBC as well as what the fit might look like if they were to go ahead with their idea to move out of hardware and into software. Given this analysis, what recommendation would you make to ZIP regarding a) the best strategy for them to follow, and b) what they would need to consider in implementing that strategy. The ZIP Company Zane Smithers plan to create the worlds greatest home video-game machines has fallen flat. The business that he founded in 2008, The ZIP company, has been a maker of advanced video game systems (the hardware). But, with a video game system whose initial $1200 price was much higher than rival systems and against stiff competition from the likes of Nintendo, Sony and Microsoft, its business has never taken off. As a result, the company is giving serious consideration to selling off its hardware business so it can focus on making software for personal computers, other game platforms, and the Internet. The company believes that selling off its ZIP Systems hardware business would raise significant capital and cut the number of jobs from 450 to 300. The Internet, and Internet entertainment in particular, is a huge opportunity, said Mike Smithers, chairman of the company. We are considering moving toward focusing entirely on the challenge of building a strong entertainment software studio, with the Internet as a catalyst for growth. The moves that ZIP is considering are another reminder of the ferociously competitive nature of the multi-billion dollar video game business. By focusing on software for PC and Internet games, ZIP would take on a similar-size market that, while it has a few larger competitors with some offerings, generally is comprised of much smaller companies. A year ago, ZIP began hedging its bets by licensing its game-machine designs instead of manufacturing the machines itself. It also began developing games that run on personal computers a platform that ZIP previously derided as too slow to run great video games. It began delivery of the first of these games on January 1, 2022. The game can be played individually or over the Internet and sells for $49.95. Smithers said, I recognize that hardware and software are very different businesses, and ZIP would need to simplify and focus its efforts