Business Strategy Presentation on Oracle

Topics: Oracle Corporation, Database management system, Strategic management Pages: 14 (3491 words) Published: June 25, 2010
Business Strategy

• Founded in 1977 by Larry Ellison, Oracle is a relational database management company whose products are used in many Fortune Global 100 companies

• It underwent a few name changes before finally settling on Oracle Corporation so as to mirror its successful flagship product, Oracle database • Oracle is publicly traded on the Nasdaq and has grown globally having offices in more than 145 countries with over 80,000 employees worldwide • It provides a number of software solutions for database management systems, database development, application servers, customer relationship management software and more

Vision and Mission
• To become the industry leader in computer integrated software systems, specifically in middleware and application systems similar to its leadership in database systems • To provide customers with complete and open solutions to meet their business needs • To continue to innovate and focus on solving the problems of the customers that rely on their technology

Industry and Competitive Analysis
Oracle’s NAICS 51121, Information Communication Technology (ICT) • Operates in all aspects of ICT (services, manufacturing, and wholesaling) – TOTAL ICT Sector $155.3 Billion dollar industry in 2008 – Oracle is shown to compete in 212 Strategically Relevant Industries (SRI’s) STRENGTH OF COMPETITION: All key competitors are multi-billion dollar level

DRIVING FACTORS: Consumer desire for “Cloud Computing” is driving new innovations in industry RATING: Oracle is rated #1 within industry with the recent acquisition of Sun Microsystems, its one of the top 10 companies listed on NASDAQ. Oracles revenue was $23.2B USD in 2009 STRATEGIC POSITION: Oracle has also gradually increased its budget for its research and development department which is important if it wants to continue being an industry leader in the future because of increasing competition from companies such as Google, IBM, and Microsoft FUTURE TRENDS: Oracle is continuing to grow by leaps and bounds, positioning itself to compete head-tohead against IBM as the pre-eminent one-stop IT vendor. Oracle will be able to reach all the way into the data center when supplying enterprise solutions. On the application infrastructure side of things, ownership of Java and an improved in-house high performance story to tell customers represent tangible gains. The deal also opens the door for Oracle to pursue an aggressive SaaS-enablement strategy.

Industry and Competitive Analysis
5 Forces Model • Most important is Competitive Pressures Created by the Rivalry among Competing Sellers. Oracle faces stiff competition from existing competitors in all areas of its businesses. Primary competitors are IBM, Microsoft, SAP, and Google. These are all large companies with strong financial resources and expertise that are very capable of direct competition with Oracle. Oracle benefits from aggressive acquisitions, brand recognition and loyalty as well as a reputation for providing outstanding service and support to its customers. Another key factor is the Threat of New Entrants. Currently, not all of the competitors Oracle deals with have products in the various areas that Oracle has business in. However, companies like IBM, Microsoft, SAP, and Google are looking to expand their product lines and introduce new ones to further increase rivalry and try and gain market share away from Oracle. Although there are high initial investment costs to enter new markets, and brand loyal towards Oracle is strong, these companies have the resources required to pose a significant threat. Oracle also benefits from high-switching costs and well established distribution channels

Industry and Competitive Analysis
5 Forces Model Continued • Threats from Competitive Substitute Products: Although Oracle has developed an integrated application suite to merge all aspects of business for its customers. Oracle has created a...
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