Time Context

Time Context

In the dot-com bubble, Sun began making much more money, and its shares rose dramatically. It also began spending much more, hiring workers and building itself out. Some of this was because of genuine demand, but much was from web start-up companies anticipating business that would never happen. In 2000, the bubble burst. Sales in Sun's important hardware division went into free-fall as customers closed shop and auctioned off high-end servers.

Summary of the Case

Sun Microsystems, Inc. began in 1982 with all their systems having a network interface and all four of their employees using email. Sun, also, initiated a workstation that included TCP/IP, transmission control protocol with Internet protocol, which is now known as the Internet protocol suite.

Sun emerged as the number one database platform by forming alliances with Sybase, Oracle, Ingres, and Informix during 1989. During 1991, Sun's market share in RISC rose to 63%.

*The first universal software platform was introduced during 1995.

*The number one supplier of UNIX multiuser disk subsystems was Sun.

*In 2001, Sun has offices in 170 countries, is a $19.2 billion global leader in network computing solutions.

* "Take it to the nth"

Through 1994, Sun workstations and servers were used to reduce costs and improve public safety during a retrofit of the Golden Gate Bridge. Sun's home page, sun.com was established. Sun provided up-to-minute information for the 1994 World Cup Soccer game over the Internet..

Vision Statement

The vision of Sun is "The Network is the Computer". Sun's vision is of computers that can talk to each other no matter who built them. Technology works for the user, not the provider.

I. Statement of the Objective

* To determine the importance of analyzing and understanding the firm's external environment.

* To provide information that would guide firms on how to cope with the changing environment.

* To determine several factors that is useful to the firms in formulating strategy.

II. Central Problem

* Highly uncertain environment

* Bloated cost structure

* Slow adaptation to changes

III. Areas for Consideration (SWOT ANALYSIS)

Strengths

 Customer view Sun as repository of wisdom and competence

 Strong portfolio of products

 Strong performance of disk storage systems

 Good at repositioning products

 Improving operating efficiency

Weaknesses

 Declining revenues from the US

 Excessive dependence on single customer

 Traditional business being eaten away by PC's