ORACLE Business Strategy
Oracle and its strategy for future growthThis paper looks at the strategies adopted by Oracle Corporation to ensure a consistent year on year growth in their core business areas. Oracle Corporation is one of the world's leading supplier of software for information management, and the world's second largest independent software company. The company offers its database, tools and application products, along with related consulting, education, and support services, in more than 145 countries around the world. It employs 43,000 people worldwide of which 21,000 are based in the US while 22,0001 are based outside the US. Its current CEO Larry Ellison founded Oracle in 1977. Identifying relational databases, as a great business opportunity is one of several brilliant moves Ellison made over his career. In the 70's IBM came up with the concept of an inter-connected data store, which allowed users to perform ad-hoc queries. IBM management failed to capitalise on this idea however, but Ellison seized upon it. Customers such a!s government agencies and manufacturers used Oracle programs to manage their data. From the beginning Oracle was a sales-driven, win-at-all-costs company. With a unique product and a hungry market
Also a whole new crop of enterprise software companies has built entire businesses around the web from the ground up. 3 OpportunitiesBy 1997 e-commerce was an integral part of business strategy for most large corporations. The trend in recent years has been for applications providers to acquire consulting arms in order to provide a one stop turnkey solution to corporate clients. They embarked on a R&D program to develop a suite of Internet based enterprise application software. This eradicated the need to hold large numbers of databases on a client/server architecture since the delivery could be achieved through an Internet browser. Other major competitors such as Siebel and SAP were also preparing Internet based products. RecommendationsOracle needs to continually improve its offering in this highly competitive field. The result was that as revenue grew almost 15% in the 1999/2000 fiscal year, its personnel fell by 5. There is also a pricing problem with the Internet applications suite strategy. Not surprisingly, given the complexity of all this, Oracle does not have nearly the leverage in this world as Microsoft had when it started serving up suites of desktop applications to PC users. Investing heavily in R&D has allowed Oracle to provide its database products for all leading hardware platforms be it mainframe, mini or PC. Any explosive growth beyond this threshold will not be very easy.
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