Oracle Corporation Case Study Solution & Analysis
Introduction
Historically, the company's core customers consist of the Original Equipment Manufacturers (OEMs), which utilized to offer Oracle Corporation Case Study Analysis items withtheir own brand name. Its client circle includes Original Equipment Manufacturers (OEMs), who used to sell Corp items with their own brand name. He rearranged Enterprise as an international brand name and educated his divisional managers to understand marketing and its significance.
Issue Declaration
Business's transition from a product based to a marketing company is not going as efficiently as planned.Overcoming the hesitation of divisional managers to incorporate marketing efficiently is still a major difficulty. Developing a consistent brand identity across the whole world and employing marketing strategies that finest fits the regional culture is no simple task.
Situational Analysis
Yun had a rather clear photo in his mind about how Oracle Corporation Case Study Analysis can transform from a low end to a high end product company. He understood that transformation can just be done through positioning Venture as a business using high-end items and this might only be done through high level of marketing.
In spite of having a clear vision about how to construct Enterprise brand name, with a prospective assistance of its executives, Yun faced several marketing challenges in early years of its efforts.
Among the marketing obstacles for Yun was the perceptions of executives about the worth of marketing. They considered marketing and selling as very same tools and believed that quality products do not required marketing for increasing sales. As their focus towards marketing was rather low in their previous company practices, and the present marketing requirement was too much high, the space was too broader and to fill this space with incorrect perceptions about marketing was rather tough for Yun.
Along with it the product range of the company was increasing with the ripening of brand-new product ideas by the R&D sector of Company. Yun had a difficulty to carry out marketing preparation and to develop marketing spending plans for existing as well as for brand-new products from the very beginning, and this would take a substantial time.
A substantial shift would be required in current marketing expenditures to develop the Corporation brand. This would result in increased marketing expenditures for Corp and might interrupt the administration concerning increased costs, as they were hesitant to marketing expenditures previously and an unexpected big shiftwould make them interrupt.
Internal Analysis
SWOT Analysis
Strengths
Oracle Corporation Case Study Analysis strengths lie in its substantial item portfolio. Enterprise has biggest number of patents in the market with overall number of 15499 patents approved in US( USP).
Another strength of Oracle Corporation Case Study Solution is its capability to develop ingenious items at a constant rate. It significant proves for the development and product designing of Business is that the company has received numerous awards for its development and item design.
Unlike Apple and other competitors, Corp is focused on producing gadgets which can be easily integrated with any type of open source Operating System (OS) and software application. This provides Venture an edge over Apple devices.
Corporation's capability to produce high end products at low cost of production is also among the significant strength of Org as it makes it possible for the company to catch more market by providing quality items with cost control.
Weaknesses
Venture's weak points are concealed in the business's dependence on outsourcing software application for its devices due to company's failure in developing software, unlike Sony. Oracle Corporation Case Study Analysis likewise has low revenue margins as compare to Apple due to substantial distinction in the prices of Apple and Business with a much lower difference in quality.
Opportunities
Opportunities for Organization depend on the growing Smartphone market and the company's efficiency in the market. It can increase its market share and profits from cell phone as the company is rather efficient in cell phone market. Organization currently runs in about 80 countries and the business has an opportunity to increase its geographical growth by moving towards more emerging markets outside Asia. Venture can move towards acquisitions to get patents. It would allow the business to increase its item portfolio with a boost in its wealth.
Threats
The dynamic industry environment of innovation market position a serious threat on Corp's survival and require the business to invest much of its revenues share on R&D in order to survive in the long run. The market saturation in developed nations i.e. saturation of mobile company is also a huge hazard for the company's growth in the presence of strong competitors like Apple.
4 P's of Marketing
Product
Oracle Corporation Case Study Analysis provides quality products and has a rather abundant portfolio which accommodates various sections. The majority of the items remain in the leading three of their particular markets. LCD and smart phones are the greatest products of Corporation, whereas DRAM is likewise not far behind in comparison of them. Following is the line of product of Corp:
• LCD/ TELEVISION
• Laptops.
• Cellphone.
• A/c.
• Computer.
• Hard disks.
• Washing machines.
• Fridges.
• Video cameras.
• Microwaves.
• Flash memory.
• DRAM.
Cost.
Oracle Corporation Case Study Solution utilizes both market competitive and market skimming rates techniques for its wide range of items. In competitive rates it adjusts the price according to the competition in order to acquire advantage, whereas, it utilizes market skimming strategy where the item has an included worth and by offering a couple of products it can reach break-even.
Place.
It has among the best supply chain networks, with retail suppliers, their own sole suppliers, E commerce channels like Amazon and so on. All its items are prompt supplied to the selling location/ delivered to the clients straight in case of online order.
Promo.
It uses both offline & online channels of promotion to market their products. Paid product advertisements, social promotion and digital advertisements are uses to produce awareness about Venture products.
Worth Chain Analysis.
It's an analytical structure for identifying company activities that include value or competitive benefit for the business.
Inbound Logistics.
For its incoming logistics it owns numerous logistics firms as it subsidiaries. It looks after its providers and produces a harmonious relationship with them and even decreased their payment cycles to increase this relationship further which adds worth to their chain network.
Operations.
Venture's core proficiency is its mass manufacturing it produces 90% of its items internal. Divided into three various departments its operations are namely IT & Mobile Communications, Device Solutions and Consumer Electronic Devices. It is keeping operation centers worldwide to further include value to its value chain network.
Outbound Logistics.
Its outgoing logistics system performance is one of the primary reasons Oracle Corporation Case Study Solution is able to take on Apple. Venture's own Electronic Logitec system plays a major function in the outgoing logistics operations. It even performs the jobs of collection of payment, settling insurance claims, etc. on behalf of Company.
Marketing and Sales.
Bring in target consumer attention towards the product is done through marketing and sales to communicate with them the value and competitive benefit the item provides. Oracle Corporation Case Study Solution advertising budget is continually increasing since they started their repositioning worldwide and will continue to do so as they are continually looking to expand and invest in high prospective development markets. The spending plan is spent on events, print and media ads, public relations and so on.
Venture Service. Company put their clients on top and constantly make every effort to provide unmatchable customer support standards. As after sales service is ending up being very essential to keep clients delighted and engaged, they even conduct surveys through 3rd parties to discover their client's feedback and execute it in the positive way to decrease or if possible entirely remove their customer concerns. By adding a direct assistance line to call them 24 hr they have further increased the included value of Oracle Corporation Case Study Help service.
Division.
Oracle Corporation Case Study Analysis has actually diversified market segmentation, based upon its arrangement of vast array of items to large number of consumers. Venture target customer sections can be divided into 3 categories i.e. Oracle Corporation Case Study Analysis IT and Mobile Communications, Organization Consumer Electronics and Enterprise Device services.
Geographical.
Oracle Corporation Case Study Analysis geographical segmentation is based upon 2 criteria i.e. area and density. Org serves about 80 countries worldwide with its items provided to Urban as well as Rural areas of the country. The Organization is likewise growing its global presence and the business's versatility in locating its plants motivates worldwide expansion of Corporation.
Group.
The group segmentation of Oracle Corporation Case Study Analysis is based upon gender, age, life-cycle phase and occupation. Enterprise produces items that can be utilized by both women and males. The target consumers for Corp IT and mobile interaction items have an age range of 18-65 with bulk at a young or recently married life process phase. They are primarily professionals, trainees and employees. Apart from it, Company Consumer Electronic devices are targeted to a consumer section with an age series of 25-65. They are primarily specialists and workers. Company Gadget Solutions are targeted at trainees, staff members and experts with an age range of 25-65.
Psychographic.
The psychographic segmentation of Oracle Corporation Case Study Analysis s based upon the social class and the life style of the consumer. Enterprise target customers on the basis of social class are primarily upper middle, middle and working class customers, as Corp sell items like cellular phone not much more affordable i.e. Motorola along with not much pricey i.e. Apple. It provides quality items to middle level consumers at a slightly high cost than others targeting the exact same sector.
Behavioural.
Oracle Corporation Case Study Solution majority target clients have unique behavioural qualities. They are drawn in towards Company due to the fact that of its moderate costs with a degree of quality.
Quantitative analysis.
Sales of Oracle Corporation Case Study Solution has increased amazingly from 16 billion $ in 1997 to 44.6 billion $ in 2002, and the net revenue of.48 billion $ to 5.9 billion $. Digital media is the biggest selling category of Corp with sales of 13.9 billion $, whereas, Telecommunication and Semiconductors sectors both reached 11 billion $ in sales.
Qualitative analysis.
Yes, this decision is based on the mission of Kim to target the more youthful audience and produce a global brand name picture of the business. Whereas, the core strength of the business is currently making however long gone are those days when great items were offering themselves. In the existing age marketing is really important and companies can not be successful without it. Kim has actually currently started to strengthen the marketing activities of Company and very soon it will become one of its core strength like producing if not much better.
VRIO.
Value.
Enterprise runs designs, makes and sell a huge portfolio of customer electronic devices. It runs in an extremely competitive environment and has actually successfully positioned itself as the maker of quality products. So, the response is yes.
Rarity.
As, said earlier that Oracle Corporation Case Study Solution operates in a highly competitive environment, which implies all the companies have comparable items. So, the response for rarity is no.
Imitability.
Due to the nature of the market, it is really easy for rivals to comprehend the functionality of the items and quickly make their own models. Yes, Enterprise is just behind IBM in registering brand-new patents every year, however the advantage is really short term in this market.
Company.
Chairman Lee has completely turn-around Organization, from going almost insolvent during the Asian monetary crisis of 1997 to the top 25 business worldwide. Definitely yes there is proper organization in the business and the results speak for themselves.
External Environmental Analysis
PESTLE Analysis
Political
Being an international brand spread nearly in every country worldwide, bulk of the environments like U.S.A., Europe, China and so on, are extremely conductive for its operations. It faces some political pressures in less developed countries where law and order situation is not good. Latin American, African and some Asian nations fall in this category, where political instability do have an effect on Oracle Corporation Case Study Analysis operations.
Economic
Buying power of customers is important for companies like Org to succeed and grow. Emerging markets like India, middle-eastern countries and so on offer development chances, whereas, due to economic crisis even the clients of industrialized nations suffer terribly. It is really crucial for the business to keep an eye on the continuous financial situation of the country before going into the market.
Socio-Cultural
Multinational companies have to deal with different social and cultural problems during its operations in a foreign country. Corporation has likewise dealt with numerous concerns however have actually embraced to the regional environments of the majority of the countries extremely well. It has customized its items, practices, policies and so on accordingly in order to succeed.
Technological
With an annual expenditure of 2.4 billion dollars in Research & Advancement, and with constant ingenious product launches, Oracle Corporation Case Study Analysis is one of the top ingenious business of the world. With a clear objective to be ahead of the rest when it concerns technological improvements, Org has actually risen to the no 25 of the leading effective business of the world.
Legal
Each country has their own laws and policies, being an international company Corp need to strictly follow those laws in their jurisdictions. Failure to do so, will result in serious legal consequences. So, it needs to study or employ a local law expert prior to beginning its operations in a particular country.
Environmental
With the rising awareness among customers about the ethical & environmental infractions of companies, Organization has to ensure that it follows all the security standards. Ecological damages, ethical misconducts are not acceptable and in some countries the effects can be very severe. On the other hand it needs to do some Corporate Social Duty practices to show the locals that it appreciates their environment and people.
Porter's Five Forces
Risk of Replacement
Threat of substitution for Enterprise's each item classification is quite significant. Running in an incredibly dynamic market lead the business to deal with a high hazard of alternative. Factors for high risk of alternative for Oracle Corporation Case Study Analysis Smart device include the presence of high number of suppliers and Market saturation in industrialized countries, that make the expense of switching for customers practically no. Replacement hazards for Org visual screen lie in the changing life style of customers. Customers can change to seeing visuals at home towards outside activities. In addition to it, Enterprise printing options products are threatened by the increasing attraction of customers towards cloud storage.
Rivalry Amongst Existing Companies:
The rivaly among Organization and its close competitors is intense. The major reason behind this is the approach of market saturation in numerous number of product classifications, requiring Corporation to introduce more innovative features in existing products and brand-new innovative items to preserve its growth. Other aspect for the extreme rivalry among the competitors is the little product distinction amongst the items. The popular players in the technology industry are rather familiar with the importance of R&D spending for their survival and are running into a race of marketing and R&D costs, to capture the marketplace. The significant rivals for Oracle Corporation Case Study Solution samrtphones consist of Apple, Motorola, LG, Nokia, Huawei, OPPO and so on. High competition rivalry results in the varying market shares which can be seen in Exhibit F.
Bargaining Power of Suppliers:
( Organization Sustainability Report, 2016) Provider's bargaining power for Org is low as Corporation runs economies of scale and its orders are of possible size and worth. Due to incapability of Oracle Corporation Case Study Solution to develop its own software, it has to outsource its software development to Google, which ends up being a potential supplier of software application for Enterprise, resulting in high bargaining power of Google.
Bargaining Power of Buyers:
Negotiating power of purchasers for various variety of product classifications of Enterprise is intense. One of the factor leading to the intense bargaining power is the availability of large number of rivals in practically each item classification i.e. competitors of Company Smart device, with an extremely little distinction. The high accessibility of providers of Smartphones with minimum differentiation, make the changing cost for purchasers practically zero, for this reason increasing the bargaining power of buyers. Market saturation in the majority of the product classifications likewise make the bargaining power of buyers more extreme in for Oracle Corporation Case Study Analysis. In spite of igh bargaining power Corporation is quite capable of offering its items at a greater rate than much of its rivals, due to high end quality item and a fair brand image.
Hazard of New Entrants:
Threat of new entrants for Corp is quite low. One of the significant aspect for low danger of brand-new entrants is the high competition in the industry. The requirement of big amount of capital to go into in the market is likewise one of the prospective barrier to entry. In addition to it, requirement of substantial knowledge and research and advancement expenditures for survival in the industry likewise make new entrants reluctant to enter in the market. Market saturation is likewise among the barrier of entry in technology market. High bargaining power of suppliers force the gamers in the market to charge as low rates as possible and this can only be achieved by production efficiency. New companies, in majority cases, do not have the production performance, hence increasing the threats for entryway in the innovation market.
Competitive Analysis
Org's high item diversity offers it distinction from its competitors. Unlikely to its close rivals including Sony, Intel and Nokia, who focus bulk on a single item category with Sony focusing on customer electronics, Nokia on cell phones and Intel on chips, Oracle Corporation Case Study Analysis had a huge R&D costs on all of its item classifications which make it possible for the business to make potential earnings from sales of practically all of its items.
The company ranks initially in 4 product categories i.e. DRAM Chips, LCD Displays, Big Screen Televisions and Microwave, in terms of international market share, among 8 various item categories. Company was the global leader in producing DRAM, SRAM and NAND flash chips. Venture earnings from chips was less than Intel but its incomes from chips was growing faster than Intel and has grown close to the revenue levels of Intel, as given in the case Display 2.
Along with the chips Org mobile market was likewise flourishing at a high rate than its rivals i.e. Motorola and Nokia. Corporation's cell phone's sales growth was 51% as compare to Motorola with just 4% and Nokia with absolutely no sales development. The significant reson behind Corporation's high development despite of higher rates than Nokia and Motorola was the company's high-end quality cell phones.
Business was likewise reaping the benefits from increasing market share of luxury LCDs as given in case Exhibition 3. The significant factor, making the business allow to avail the chance is its mass production at low expense. Sony was the most significant rival for Oracle Corporation Case Study Solution in LCD market, however, it had likewise begun joint endeavor with Organization in 2003 for LCD producing, decreasing the competition for Corporation.
Porter's Competitive Method
Low Expense Leadership method of porter is totally implemented by Enterprise the method they achieve economies of scale by strengthening their core proficiencies of manufacturing. They always bring something new and ingenious whether it's a service or a product.
Alternatives
Alternative Solution 1
The Chief Marketing Officer (CMO) of Oracle Corporation Case Study Analysis would create a new brand name image by targeting the younger generation of the particular country. As, especially mobile phones of Organization are very popular among the younger demographic.
Pros
1. It is the very best method to construct Consumer Life time Value (CLV) by developing a long-lasting relationship with consumers. Develop loyalty through providing worth and profit for long-term, as research has actually showed it is more affordable to retain existing consumers than to draw in brand-new ones.
2. Another pro of this alternative is that word of mouth spread faster among younger people and which in turn will bring in new consumers for my items.
Cons
1. Old customers who were related to Organization prior to may not like this brand-new image the business is trying to depict.
2 It will incur more expenditures to reposition some items and it may not even bring success as the patterns change extremely quickly among the younger demographic.
Alternative service 2.
Enterprise has actually made manufacturing its core proficiency for the a lot of part of their organisation and due to which its supervisors are not scared to completely get out of their convenience zone. It would be done by organizing training workshops throughout which importance of marketing will be taught and numbers will be offered. Failure to get the passing ratings will get demoted. Marketing environment should be produced internally first as genuine marketing starts inside the corporation.
Pros
1. Its pro will be that all the marketing method fans will come out and also the opposite ones.
Cons
2. Its con can produce an extremely unhealthy environment in the work environment, as individuals typically withstand change due to the fact that they fear it.
Identify the best option
Option is the best as it plainly has more pros due to the fact that as soon as a Client Life time Value is developed the company will benefit from it till that client is alive and has purchasing power. Plus, our target clients are the younger generation which are bound to live longer than the existing aging people. Company's main objective is to produce loyalty among its consumers and make them repurchase it from them and even purchase their various products.
Execution Strategy
• Targeting younger generation through social marketing, developing a link with them like Pepsi do with music. And set the expectations attainable and practical.
• A team including finest marketing and sales specialists should be put together, and both views need to be considered prior to securing the resources required to execute the plan.
• Thorough interaction of the strategy must be done as it is extremely important for everyone to be on the same page to make it work.
• Tasks and timelines ought to be construct and communicated appropriately to each individual responsible.
• The manager ought to utilize a control panel which reveals the progress of all the tasks which have been done or about to be done and by whom.
• The manager ought to keep an eye on and keep a consistent look at the total and private efficiency.
Since any new trend or policy may come in due to which all the things currently planned have to be adjusted, • Everyone should be willing to adjust midway. It's much better to have contingency plans currently prepared.
• At the end of the project the manager should communicate the outcomes and if successful must celebrate with the group.
Spending plan
The M-net program revealed compelling analysis about the high and low growth possible locations and just how much marketing spending plan ought to be assigned appropriately. This modification the budget allotment of numerous managers and different nations were unhappy and argued but the analysis done by the program was accurate and revealed figures like North America and Russia growth prospective merited a 35% allocation while they were getting 45%. Whereas, China and Europe must be getting 42% however were rather given 31%. It truly helped to relatively distribute the resources and capture more clients by investing more on ads on the high growth potential areas of the world.
Conclusion
Oracle Corporation Case Study Solution is a top 25 company in the world now and prepares to get ahead of Sony who sits currently at no. 20. Its consistent financial investment in R&D and ingenious practices have moved them to new heights however for them its' just the start and they wish to be amongst the top 3 brands on the planet. They completely turn-around from almost going bankrupt throughout the Asian Financial Crisis to a world prominent brand name, known for quality and innovation. Their worth chain and their core proficiency their production ability, along-with international brand image building have seen their sales go from 16 to 44.6 billion $ from 1997-- 2002. With additional expansion in China and other emerging markets those numbers will just increase further in the future. Their marketing efforts need to be directed towards younger group amid the internal arguments about marketing and ought to produce Consumer Life time Value as it will not just provide benefits now but will continue to reap it till the customer life time. As the expense of maintaining the customer is much cheaper than bring in a brand-new one.
