Sun Microsystem: Presented By: Presented To

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SUN MICROSYSTEM

Presented by:
Aditya Gupta
Anoop Shukla
Presented to:- Rahul Kumar
Prof. Jayant Saurabh Sachdeva
Bose PGDM-2008-10-A
Introduction

 Founded By Andreas Bechtolsheim, Bill Joy, Vinod


Khosla Scott McNealy in 1982.
 Headquarters in Palo Alto, California.
 Operating in 150 companies with 35000 employees
worldwide.
 Sun has emerged itself in Global Fortune 500
companies.
What is the case all about ?
Sun’s mission,& Vision statement
Mission Solve complex network computing problems for
governments, enterprises and service providers.

“Establish Starbucks as
Vision Everyone and everything connected to the network.
the preEEeeeeemier
purveyor of the finest
coffee in the world
while maintaining our
uncompromising
principles as we grow.”
Products & Services.
 Network Servers.
Servers &workstations.
Java Technology.
Consulting & Support Services.
Infrastructure Solutions.
Complete Software Systems.
Data Storage Systems.
Performance & Growth of Sun

 Sun reached $ 1 billion in revenue in 1988.

 Net revenue in fiscal 1998 increased to $9.7 billion.

 Company’s revenues have grown an average of


34.1% annually
 company is generating 49% of the total revenues
from outside the United States.
Java Technology Revolution

Sun introduced the first universal software


platform i.e. Java Technology.

Introduction of Java 2 software.

Sun licenses Java Technology to all major


hardware $ software companies.

More than 75% authorized Java centers facilities


help companies around the world implement Java
solutions.
5 force New entrants :
High & medium
Model
entry barrier

Supplier: Rivalry:
San Jose, MCROSOFT, IBM, Buyer’s:
Green Hills, HP, DELL, INTEL Govt.depa
rt.
Enterprise
s.
Services
Providers,
Substitutes
No substitutes
SWOT ANALYSIS

Strengths:
•R & D expenses 10.41% of net revenues.
•Direct & indirect Distribution.
•Introduction of Java Technology.
•Storage System has price Flexibility.
•Open, participative management style.
•Collaborative relationship with suppliers.

Weaknesses:
• low revenue in IT service industry.
•Low market Shares in mid range serves.
•Delay in introducing new products.
•Solaris was not user Friendly.
•Blindly acquiring the Companies.
Opportunities:
•Acquiring the untapped market outside us.

•Increase the product line thorough innovation.

•Sun can come into WAP technology.

Threats:
•Intense competition.

•Short PLC.

•Employee retention .
Sun Microsystems's BCG matrix

Server
Storage & services,
High

software
Star
Market growth rate

Question mark

Java Technology

Disaster
Dog sequences
Low

Cash cow
Success
Sequences
High Relative Market Share Low
Key Success Factors of the Company

•Technological Change.

•Research & Development.

•Brand Loyalty.

•Product Innovation.

•Superior Quality.

•Price/ Value of the product.

•Distribution Channel
The Frappuccinos
COMPETITIVE PROFILE MATRIX

    Sun Microsystems IBM HP

KEY SUCCESS FACTOR Weight Score Weighted Score Weighted Score

  Score Score Weighted

            Score
PRODUCT INNOVATION 0.15 3 0.45 1 0.15 4  
            0.6
MARKETING 0.05 2 0.1 1 0.05 2  
            0.1
TECHNOLOGICAL CHANGES 0.20 4 0.8 1 0.2 3  
            0.6
SUPERIOR QUALITY 0.1 3 0.3 2 0.2 3  
            0.3
BRAND LOYALTY 0.1 3 0.3 3 0.3 3  
            0.3
PRICE/VALUE OF THE  0.1 2 0.2 4 0.4 2  
PRODUCT           0.2
             
DISTRIBUTION CHANNEL 0.05 4 0.2 3 0.15 2  
            0.1
RESEARCH AND  0.15 4 0.6 2 0.3 3  
DEVELOPMENT           0.45
             
MERGER AND ACQUISITION 0.1 4 0.4 1 0.1 3  
            0.3
TOTAL SCORE
1.00 3.35 1.85 2.95
Corporate Governance of Sun Microsystems

Scott G McNealy—CEO

Michael E Lehman--- CFO

Alan E Baratz—President Java Soft.


Sun Microsystems Corporate Strategy
•Integration – forward, backward and horizontal.

•Market penetration.

•Market development.

•Product development.

•Joint ventures.
Recommendations

•Market development in Asian Countries.

•Product Development.

•Developing Java for cellular market.

The Frappuccinos
Thank you

The Frappuccinos

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