February 08, 2013
1. Summarize Sun's current strengths, weaknesses, opportunities, and threats. A: THREATS:
• Linux appearance, the new OS which is inexpensive, scalable and rapidly adopted in countries that have business with Sun Microsystems • Collapse of foreign economic where Sun Microsystems has its major presence and revenue, such as: Brazil and Japan • Old competitors (Dell, IBM and HP) who start developing computers in the low-end segment at very reasonable prices, lesser expensive than Sun Microsystems. WEAKNESSES:
• Executive Exodus. The key persons left the company, most of those people had the responsibility to manage the company and set the business strategies. All those Executives had over 15 working for the company. Sun Microsystems lost its thinking heads. • Slow adoption of the new open source philosophy. The company disregard the impact of open source OS (Linux) which gained a very important portion of the market share of server service. STRENGTHS:
• Very strong service and technical support
• Sun Microsystems offers a complete integrated solution in server service. They produce equipment and software which guarantee the company has a reliable offer of service OPPORTUNITIES:
• Adoption of Linux-based products and x86 platform, that will give to the company better opportunities to compel and compete for the segment of high-end Unix servers • Possible partnership with Fujitsu to develop a new chip more affordable • The contract signed with China for 500,000 to 1,000,000 copies per year of Sun’s Java Enterprise System • The new era of cell phones (smartphone) that support Java as part of its applications
2. Define the company's strategic goals.
A: The Company will continue to add value through innovation rather than being relegated to a game of economies of scale and efficiencies
3. Discuss the characteristics of Sun's competitive landscape and the need for strategic flexibility. A: Sun...