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un Microsystem Company Analysis Essay

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Executive Summary

In this analysis of the Sun Microsystem Company I will give a situation analysis, which includes the growing economic trend in the market of the new computer technology. An analysis of the industry that states the current workstation market and its competitors, which states that the industry is an exclusive market with high entry barriers and has a constant competition with the personal computer industry. In the organizational section, a general financial analysis of the companies profitability, and the management philosophy of the current C.E.O. and the negative effects he’s caused. The marketing strategy will explain the companies target market, its market focus, the aspects of its advertising, and advertising …show more content…

Situation Analysis

Environment

The economic environment from 1982 to 1990 was the age of new technology. During this time there were many new companies emerging in the computer industry, trying to find a niche market. The economy was trending towards a large increase on economic wealth and very low unemployment rates. The culture was starting to embrace the idea of computer technology and the idea of networking.

Industry

The industry in which Sun Microsystems is competing in is computer workstations for scientists, engineers, and commercial companies. Sun’s founder’s believed there was demand for a desktop computer workstation costing between $10,000 and $20,000 in a market niche, ignored by minicomputer makers such as, IBM, Data General, Dec, and Hewlett-Packard. Sun’s executives believed that they would only have a short time in this market before the other large companies decided to enter, because it was an exclusive market with a high entry barrier, but with opportunity for extensive profitability.

The workstation market for engineers and scientists was rapidly becoming saturated. The company is now concentrating more of its efforts on airlines, banks, insurance, financial companies, and other commercial companies, trying to persuade users to utilize Sun workstations to solve new problems. Sun had to change their product design to make its machines easier to install, and improve the understandability of product manuals. As Sun

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