Strategic Management and Strategic Competitiveness
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Strayer University
BUS 499 Business Administration Capstone
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April 18, 2013
STRATEGIC MANAGEMENT AND STRATEGIC COMPETITIVENESS 2
With offices in more than 30 countries, Red Hat, founded in 1993, is the world's leading provider of open source solutions, using a community-powered approach to provide reliable and high-performing technologies ("Red hat company," 2012). The five technologies are cloud, operating system, storage, middleware and virtualization. Globalization and technology have positively impacted Red Hat. Globalization and technology has allowed Red Hat to expand from their office in Raleigh, North Carolina to over seventy offices in 33 countries all around the world ("Red hat company," 2012). Red Hat has had strong growth over the past ten years. In 2012, it surpassed the billion dollar revenue mark. It is believed that Red Hat accomplished this by delivering a reliable product to its customers. The growth of technology, specifically the Internet, has increased the efficiency and the scale in which Red Hat operates. Other websites and email list are available via the Internet making business developers around the world be able to collaborate with other business developers on various projects. Without this technology, the business leaders and developers would have limited information available to them (Peters, 2012). Red Hat uses both the industrial organization (I/O) model and the resource-based models in order to earn above-average returns. The I/O model focuses on the outside of the organization and the resource-based model focuses on the inside. On the outside, the I/O model, Red Hat concerns themselves with their competition and what products and services they are offering. Some of their most known competitors are IBM,
References: Corporate fact sheet. (n.d.). Retrieved from http://www.redhat.com/about/mediarelations/factsheet.html Hitt, M. A., Ireland, R. D., & Hoskisson, R. E. (2013). Strategic management: concepts and cases, competitiveness and globalization (Tenth ed.). Mason, Ohio: Cengage Learning. Lawrence, A. T., & Weber, J. (2010). Business and society, stakeholders, ethics, public policy. (Thirteenth ed.). New York: McGraw-Hill/Irwin. Peters, C. (2012, April 25). Red hat 2012 annual report. Retrieved from http://files.shareholder.com/downloads/RHAT/2426027210x0x581760/6FEDF811-091A-49BB-8EB2-83C31DC561AB/Annual_Report_062512_Final_Bookmarked.pdf Red hat company brochure. (2012). Retrieved from http://www.redhat.com/resourcelibrary/datasheets/red-hat-company-brochure