Oracle Swot/Pest/Porters Analysis

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Three decades ago, Larry Ellison saw an opportunity other companies missed when he came across a description of a working prototype for a relational database and discovered that no company had committed to commercializing the technology. Ellison and his co-founders, Bob Miner and Ed Oates, realized there was tremendous business potential in the relational database model—but they may not have realized that they would change the face of business computing forever. SWOT Analysis

Oracle has a growth strategy that focuses on acquisitions of complementary companies, products, services and technologies. Over the previous 4 years, Oracle has significantly invested in acquiring companies like BEA Systems in 2008, Hyperion Solutions Corporation in 2007, Siebel Systems in 2006, and Peoplesoft in 2005. This aggressive strategy has allowed Oracle to further strengthen their market position and expand their customer base. Oracle’s high debt profile is weakness that they have not been able to overcome. The long-term debt has increased from $163 million in 2004 to $10,235 in 2007. Higher debt in the capital structure indicates that there will be lower financial flexibility which may stop them from making future business ventures. Threats:

PEST Analysis
In the software industry, Oracle is the leader on energy and environmental issues. Oracle has always promoted “green” particles and has energy saving programs that allow facilities and employees to minimize their use of energy. Oracle has provided electronic delivery for most of their products which reduces the use of physical packages and documentation. Oracle is committed to reducing pollution by providing bike lockers, priority carpool parking, and discounted public transit tickets for commuting employees. Technological:

Porter’s 5 Forces
Finkle, J. (2009) Update 2-Oracle envisions rosy life with Sun....
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