Oracle acquired Sun in 2010. Sun Microsystems is a diversified IT company that makes everything from hardware such as semiconductor chips to software. The company has a presence in several different markets which means that they have to compete with a large number of competitors amongst these different markets. Many of these competitors are specialized in their respective fields. In order to determine the best strategy for the company, we first need to understand and analyze its internal and external environments. This will be achieved through a SWOT (Strength, Weakness, Opportunity, Threat) analysis.
- Presence in both hardware & software markets: Few companies have a well developed hardware and software portfolio like Sun does. They make everything from semiconductor processors, microchips to operating systems. In comparison to competitors like Intel who has a software presence and Microsoft that competes primarily in the software market.
- Java Platform: Java is one of the core products of Sun and is very successful.
- Value addition: Sun Microsystems provides value added services to customers and has given them a favorable brand value and brand recognition.
- Lack of scale: Since the company is present in various competitive sectors, it has not focused on building up scale. They are spread out on a variety of markets with a diversified portfolio rather than a focus on just one product or service. For example, it does not have the scale of HP in hardware; neither does it have the scale of Microsoft in software.
- Unclear competitive advantage: Sun needs to set itself apart from their competitors and develop its core competency. Only a clear competitive advantage will enable the organization to thrive in the long term.
- International focus: Currently Sun is predominantly US focused while its competitors such as Microsoft have a worldwide or global presence that account for a significant portion...
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