September 21, 2005
Table of Contents
Porter’s Force of Competition4
Implementation of Windows NT5
Cooperation with Fujitsu6
Appendix A – Porter’s Five Forces13
Appendix B – S.W.O.T Analysis of Sun Microsystems16
Appendix C – History of Sun19
Appendix D – About Products20
Appendix E – Stock Chart21
Appendix F – Market Shares22
Appendix G – Budget/Marketing Expenses Chart23
Appendix H – OS Market Share / Windows Budget24
Appendix I – Microsoft Lawsuit25
Appendix J – Current Mission Statement26
Appendix K – Values Cards28
Appendix L – Porter’s Generic Strategies29
Appendix M – Fujitsu Merger30
Appendix N – Stakeholder Analysis31
Sun Microsystems is a struggling business in the competitive world of the computer industry. With stock prices falling and an unreliable image in the marketplace, Sun must establish a sustainable competitive advantage to increase profits and customer satisfaction. Sun’s competitive advantage should be its dedication to customers, high-quality products and packages, innovation in complex networks, and services for clients that go far beyond expectations. After a thorough analysis of the industry and a complete assessment of Sun’s strengths, weakness, opportunities and threats, the following proposals are recommended:
1. Sun must establish a strong relationship with Fujitsu because Sun could enter into new markets, gain more customers, and save money both tactically and strategically by dropping certain aspects of its research and development. Fujitsu will allow Sun to further expand its hardware and software industry. 2. Then, Sun should also develop a friendly a relationship with Microsoft. Because Microsoft holds over 90 percent of the software industry worldwide, Sun’s allowing of Microsoft’s operating system on its computers would encourage more sales of Sun’s products and services. 3. Sun should begin to sell long-term packages of its products that include free services for six months and free educational seminars on all products. Sun does not have the relationship with its customers that its competitors do, but with this recommendation Sun will be increasing customer value and satisfaction, along with a predicted strong growth of its customer base. 4. Next, a revamp of internal values, including its mission statement, is important to Sun’s success in the computer market. One such value recommended to Sun is the idea of linked prosperity. Sun should want a prosperous environment for not only itself, but for its clients and employees, as well. 5. The final recommendation for Sun is a strong and strategic marketing plan. This marketing strategy includes advertising in trade and business journals, having a large and positive presence at industry conferences, and sending sales representatives to businesses, worldwide.
These recommendations can be measured by the amount of positive customer feedback Sun receives, growth of profit, and growth of its customer base. Sun needs to establish itself as a quality and customer-driven organization with a sincere desire to support the well-being of its employees and clients. With these recommendations, Sun should have a brighter and more productive future.
“An organization’s ability to learn, and translate that learning into action rapidly, is the ultimate competitive advantage,” says former CEO of General Electric Jack Welch.[i] This quotation is especially appropriate for Sun Microsystems current situation because a change is necessary. Sun Microsystems’ stock dropped from 64 to 4...