Sun Microsystems Case Notes - Sun Microsystems C ASE...

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Sun Microsystems CASE ASSIGNMENT At the conclusion of Sun's final strategic planning session, Jonathan Schwartz (President and COO) assigned you to prepare a written report and announcement that would be presented to the company's shareholders and included in a public statement. The purpose of the report is to summarize the strategic direction for Sun Microsystems moving forward and to highlight key decisions made to exploit the company's capabilities, address competitive realities, maximize performance, and secure a long-term position for the company. Your prepared report should address the following key strategic issues: 1. Summarize Sun's current strengths, weaknesses, opportunities, and threats. 2. Define the company's strategic goals. 3. Discuss the characteristics of Sun's competitive landscape and the need for strategic flexibility. 4. Considering the company's current situation, summarize the strategic direction Schwartz has decided to pursue. 5. Explain how this strategy will stand up against the competition and conditions in the industry. 6. Discuss the uncertainties and risks of doing business in different regions throughout the world. 7. Discuss the elements and objectives of Sun's cooperative strategy. What potential risks can interfere with achievement of immediate and long-term strategic goals? How should Sun protect itself to sustain success? 75
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Sun Microsystems STRATEGIC MANAGEMENT INPUTS 1. Summarize Sun's current strengths, weaknesses, opportunities, and threats. Strengths Weaknesses Opportunities Threats Diverse product portfolio providing protection from economic instability Product sales highly sensitive to macroeconomic conditions International revenue potential in five billion-dollar markets (Brazil, Spain, China, India, Italy) Economic macro- environment driving need for affordable computing options and falling prices Reputation for innovation - heavy Responsiveness to open sourcing trend Sun middleware “Java Enterprise System” Commoditization of enterprise computing Strategy of integrating proprietary operating software with hardware and microprocessor Assembly and outsourcing as integration process Outsourcing partnership with processor maker Intel, then AMD Changing industry structure - acceptance of open source software on inexpensive hardware Organizational structure to support changing international focus Resistant to change value proposition - to embrace new technology (Linux) Partnerships to develop potential innovations Linux open source technologies, and related substitute products Organizational gap between US market (bulk of existing revenue) and international markets (projected growth) Acquisitions for access to technologies, innovation potential, and market reach Globalization alongside a dynamic and unpredictable technological environment Flexibility to move away from product bundling Looking at Sun's financial performance indicators reveals the following important points: Revenues increased 56% since 1996 but the cost of goods sold increased
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This note was uploaded on 01/06/2012 for the course MGT 4027 taught by Professor Stein during the Winter '11 term at Southeaster Oklahoma State University.

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Sun Microsystems Case Notes - Sun Microsystems C ASE...

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