Sun Microsystems has made it their mission to solve complex network computing problems for governments, enterprises, and service providers for the past twenty years. (See Appendix A) They have worked to make this mission a success, yet in the past two years Sun has begun to encounter problems in achieving their mission and satisfying stakeholders (See Appendix B). This report examines the computer industry with respect to Sun Microsystems. It also contains strategic and tactical recommendations for the future success of the company.
Sun Microsystems was created by founders Vinod Khosla, Scott McNealy, Bill Joy, and Andy Bechtolsheim. They began work on Sun’s UNIX workstation in 1982, at Stanford University. Since 1982, Sun has grown into an $18.25 billion international leader that is operating in 170 countries (See appendix C). Sun began to grow in success early in its development, and by 1988 the company reached $1 billion in revenues. In 1996, Sun began licensing Java technology to all major companies in the hardware and software market. Throughout the years, Sun Microsystems has proven to be a reputable company and an industry leader.
To analyze the computer industry and specifically Sun Microsystems, Porter’s Five Forces and a S.W.O.T. analysis are used. Porter’s Five Forces is an examination of the outside affects an industry has on a company. On the other hand, the S.W.O.T. Analysis examines both internal and external forces on Sun and the computer industry. Both can be used to determine how Sun can obtain a competitive advantage over its rivals (See Appendix D for more on the industry analysis).
Porter’s Five Forces
Porter’s industry analysis looks at five different forces to determine strengths and weaknesses of an industry. Rivalry, substitutes, buyer power, supplier power, and barriers to entry are the five forces that affect every industry. By systematically analyzing...