Sun Microsystems

Prepared By

Team 1:
Morgan Allen
Chad Balaj
Kendra Bloom
Ryan Bodenhorn

September 21, 2005
Table of Contents

Executive Summary 3

Introduction 4 Porter’s Force of Competition 4 S.W.O.T. Analysis 4

Recommendations 5 Implementation of Windows NT 5 Cooperation with Fujitsu 6 Long-Term Packages 6 Linked Prosperity 7 Internal Strategy 8 Mission Statement 10 Marketing Strategy 10

Conclusion 12

Appendices 13 Appendix A – Porter’s Five Forces 13 Appendix B – S.W.O.T Analysis of Sun Microsystems 16 Appendix C – History of Sun 19 Appendix D – About Products 20 Appendix E – Stock Chart 21 Appendix F – Market Shares 22 Appendix G – Budget/Marketing Expenses Chart 23 Appendix H – OS Market Share / Windows Budget 24 Appendix I – Microsoft Lawsuit 25 Appendix J – Current Mission Statement 26 Appendix K – Values Cards 28 Appendix L – Porter’s Generic Strategies 29 Appendix M – Fujitsu Merger 30 Appendix N – Stakeholder Analysis 31

Works Cited 32

Endnotes 35

Executive Summary

Sun Microsystems is a struggling business in the competitive world of the computer industry. With stock prices falling and an unreliable image in the marketplace, Sun must establish a sustainable competitive advantage to increase profits and customer satisfaction. Sun’s competitive advantage should be its dedication to customers, high-quality products and packages, innovation in complex networks, and services for clients that go far beyond expectations. After a thorough analysis of the industry and a complete assessment of Sun’s strengths, weakness, opportunities and threats, the following proposals are recommended:

1. Sun must establish a strong relationship with Fujitsu because Sun could enter into new markets, gain more customers, and save money both tactically and strategically by dropping certain aspects of its research and development. Fujitsu will allow Sun to further expand its hardware and software

Cited: ----------------------- [i] Woopidoo Quotations, “Jack Welch Quotes,” http://www.woopidoo.com (accessed September 19, 2004). [vi] http://www.bizrate.com (accessed September 12, 2004). [viii] Products and Services, http://www.sun.com (accessed September 13, 2004). [xi] Mission Statement, http://www.sun.com (accessed September 16, 2004) [xii] Stephen Shankland, “IBM Attacks Unix Rivals with Power5,” http://news.zdnet.com [xiii] ibid [xiv] Fujitsu and Sun Expand, http://www.sun.com (accessed September 8, 2004) [xv] Stephen Shankland, “IBM Attacks Unix Rivals with Power5,” http://news.zdnet.com [xvi] Bob Djurdjevic, “Analysis of Fujitsu FY04 Business Results,” http://www.djurdjevic.com (accessed September 13, 2004) [xvii] Jay Beam, Interview by class: Athens, OH, September 10, 2004. [xviii] Woopidoo Quotations, “Business Quotes,” http://www.woopidoo.com [xix] Gary Armstrong and Philip Kotler, Marketing: An Introduction, (Pearson & Prentice Hall: 2005) [xxiii] Mission Statement, http://www.sun.com [xxiv] Mission and Values, http://www.microsoft.com/mscorp/mission (accessed September 16, 2004) [xxv] About our Company Values, http://americanstandard.com (accessed September 18, 2004). [xxx] ibid [xxxi] John Ellis, “What’s the Matter with Sun?” Fast Company (June 2002), 124. [xxxii] “Sun Extends Leadership in High Performance and Technical Computer Market According to Latest Analysis Report,” http://www.sun.com (accessed September 8, 2004). [xxxiv] “Where Storm Clouds Still Threaten Can Sun Weather the Transition to a Commodity Market?” http://etextb.ohiolink.edu (accessed September 11, 2004) [xxxv] ibid [xxxvi] ibid [xxxvii] “Where the Sun Shines Bright,” Electronic Business 29, (2003): 24. [xxxviii] Megan Graham-Hackett, “Computers: Hardware,” Standard & Poor’s Industry Survey (2004): 7. [xl] ibid [xli] “Computer Hardware,” Hoover’s Industry Snapshots, (Hoover’s Inc.) September 14, 2004. [xlii] Dr. Suzanne Allen, Phone Interview, September 12, 2004. [xliii] http://www.bizrate.com (accessed September 12, 2004). [xliv] “Computer Hardware,” Hoover’s Industry Snapshots, September 14, 2004. [lv] “Computer Hardware,” Hoover’s Industry Snapshots, September 14, 2004 [lvi] 2003 Sun Microsystems’ Annual Report, 52. [lvii] Peter Burrows and Jim Kerstetter, “SUN: A CEO’s Last Stand,” Business Week [lviii] Sun History, http://www.sun.com/aboutsun/coinfo/history.html (accessed September 15, 2004) [lix] ibid [lx] Wikipedia Definitions, http://en.wikipedia.org (accessed September 9, 2004) [lxiii] ibid [lxiv] Concerning Alleged Java Incompatibilities, http://www.microsoft.com (accessed September 15, 2004)