Sm-Corporate Strategy.

Topics: Strategic management, Subsidiary, Marketing plan Pages: 14 (3475 words) Published: January 21, 2013
Sun Microsystems ( Corporate Strategy)

Sun Microsystems was found by four individuals. It is the market leader in the fast growing workstations industry. The SPARCstation I was introduced in May of 1990. An improved version of Sparc I was introduced in the summer of 1990 with an improved interface, a color monitor. In the beginning company strategy was designed to emphasize gaining market share, concentrating on all out sales growth, no matter what the cost. Products were sold largely by the word of mouth with no formal sales promotion programs

As a part of market share focus, in the mid-80s the company began creating autonomous divisions to develop and market areas as sales to government agencies, universities and financial institution

Corporate Strategy - Introduction
Corporate strategy can be defined as the overall scope and direction of a corporation and the way in which its various business operations work together to achieve particular goals. It deals with “how to map your positioning”.

Positioning can be mapped in two dimensions
1. Industry attractiveness
2. Business strength/Competitive position

The various factors which determines competitive strategy are 1. Market factors
2. Competition
3. Financial and Economic factors
4. Technological factors
5. Socio-political factors in your environment

There are two types corporate growth strategy
1. Concentration in one industry
2. Diversification into other industries

Company Strategy – Sun Microsystems
* In the beginning company strategy was designed to emphasize gaining market share, concentrating on all out sales growth, no matter what the cost * As a part of market share focus, company began creating autonomous divisions to develop and market its products * This policy (market share focus) created many unexpected problems * Overlaps and duplication in marketing and finance made forecasting all but impossible * At its current stage the company can no longer scramble to meet shipping deadlines at the last minute * The company started experiencing production bottlenecks as discounted sales of order products mushroomed * In late 1990 Sun experienced a 20 million loss due to misjudging consumer demand * Sun started shifting its approach from market share focus to more profitability * It started pushing for open systems

* Sun has encouraged competition with itself through its focus on open systems development and invited industry to build sparc based clones * Sun’s strategies have included focusing on lower prices, well developed marketing programs and third party software development

Customer Categories
* One third of Sun’s customers come from commercial side * The company has shifted its focus on airlines, banks, insurance and finance companies * Sun started advertising in April 1991 with focus on senior level corporate executives

Caterpillar Responds to the Komatsu Challenge in South America (Business Model) Introduction
Caterpillar is a US multinational corporation headquartered in Peoria, Illinois. Initially it used to export goods from US, but after some time firm announces formation of its international subsidiaries in UK and after that it establishes manufacturing subsidiaries in UK, Australia, Brazil, France, Belgium, SA and Mexico Caterpillar led the global construction equipments industry with a strategy of broad and deep market penetration within two main categories of heavy equipment a) Earthmoving, construction and materials handling machinery b) Engines

Subsidiaries of Caterpillar Inc

Caterpillar opened various subsidiaries
* Caterpillar Americas Co – it was opened to support 34 dealers who sold caterpillar machines, engines, lift trucks, paving products etc * Caterpillar Americas Exporting Company (CAMEC) – also called...
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