Currently, SWOT-analysis is used widely in various fields of economics and management by determining company’s strong and weak points as well as risks and prospects, which it can face while operating in the market. Versatility allows using it at different levels and for different objects as a tool of management survey (management review). SWOT-analysis shows what scope and functions of the subject are in need of correction, improvement (since the parties are weak), and based on the study of possible changes in future trends in comparison with the past and the present. In addition, the SWOT-analysis allows determining which areas and features (strengths) can be more fully and effectively applied (Hollensen, 2014).
In a year, Oracle Corporation, one of the world’s leading software businesses and Microsoft’s main competitor, will celebrate its 40-year anniversary. Oracle is the first and historically one of the most advanced to date implementation of a client / server architecture. Openness (tolerance + scalability) has always been the basic idea of Oracle’s developers. The current situation of the company’s database market is certainly a direct result of the openness of the system. In September 2013, Oracle was able to make a breakthrough in the creation of databases. Company introduced Oracle Database 12c system that could handle requests to 100 times faster, compared to conventional techniques. This growth was achieved due to the fact that the data were processed directly into RAM, where they were unloaded previously from the hard disk (Oracle Corporation, 2015).
Today, the company occupies 16th position with $28B of market capitalization and over $37B of revenue among the most valuable brands in the world by Forbes opinion (Forbes, 2016). Oracle is the absolute market leader in database management systems. It is almost two times faster than such monsters as IBM and Microsoft. It owns about 45% of the market. In other areas (CRM-systems, ERP-systems, middleware, and so on) Oracle is not as successful, but still among the leaders (Oracle Corporation, 2015).
SWOT-analysis of Oracle Corporation is presented below.
As it was mentioned above, Oracle is known to be a market leader. By using the strategy of acquisitions, corporation increase its presence on different technological segments, including web-tracking, cloud-based solutions, mobile applications, digital marketing solutions, networking hardware, etc. Thus, the company offers its customers a wide range of technological innovations. The founder and leader of Oracle constantly challenged the market. Therein one of the main secrets of company’s success lies, even despite Larry Ellison’s stepping down of CEO’s position (Oracle Corporation, 2015).
The company may not attain the projected development or cost savings prospects of conducted rearrangements, or behave so during the estimated timeframe. Mentioned effects could reappear with regard to future purchases and other rearrangements and company’s proceeds and other consequences of functioning could be negatively impacted. Oracle outsources the design, engineering, assembly and supply of particular of its hardware goods to a diversity of organizations, numerous of which are situated outside the United States. Oracle’s sales to government customers are exposed it to business instability and dangers, including state budgeting phases and assumptions, early expiry, inspections, investigations, agreements and penalties (Oracle Corporation, 2015).
Technological market is very intensive as there are key major players, who form oligopolistic structure. A characteristic feature of the oligopolistic market is interdependence of firms, where any of the oligopolists is under significant influence of the behavior of other firms and should take into account this dependence. Competitive behavior of each seller has an impact on the behavior of all its competitors, causing a corresponding reaction of the latter (Hollensen, 2014).
Oracle operates in 145 countries all over the world, so its geographical presence is broad and customer base is large. Only Oracle offers the most comprehensive portfolio of industry solutions for virtualization of different systems – from the desktop to the data center – with virtualization capabilities and management of all components of hardware and software, from applications to disk (Oracle Corporation, 2015). In general, the United States is the country of very attractive business environment, but complex tax system. With the highest trade deficit in the world, the United States remains technologically advanced state, which GDP and population growth are among the highest in the world (Trading economics, 2016). Environmental regulations, namely the Directive on Restriction of Hazardous Substances (RoHS) and the Waste Electrical and Electronic Equipment Directive (WEEE Directive), both formulated by the European Union, and China’s legislation on Management Methods for Controlling Pollution Caused by Electronic Information Products, can affect the growth of Oracle’s expenses on doing business globally and affect company’s hardware systems proceeds from the European Union, China and other states with comparable ecological laws as the corporation attempts to adhere to and implement mentioned requirements. Sustained slow speed of economic recovery in European and the USA’s parts as well as Asia and South America can negatively impact company’s operation (Oracle Corporation, 2015).
Thus, the company has more strengths than weaknesses as well as opportunities prevail over risks, operating on the technological market. Its supply chain is multi-layer, worldwide and highly difficult. As a supplier of hardware systems end solutions, Oracle is some stages removed from the excavating and manufacturing or purifying of any fight minerals in its supply chain. Therefore, company’s capability to define with inevitability the foundation and chain of charge of conflict minerals is restricted. In case Oracle cannot present its solutions as conflict-free, its interactions with consumers and providers could suffer. The corporation can also face growing expenses in adhering to conflict minerals release concerns (Oracle Corporation, 2015).
References
Forbes (2016). The World’s Most Valuable Brands. Retrieved from http://www.forbes.com/powerful-brands/list/#tab:rank [Accessed: 14 July 2016]
Hollensen, S. (2014). Marketing Management: A Relationship Approach, 3rd ed. New York: Pearson.
Oracle Corporation (2015). From 10-K Annual Report 2015. Retrieved from https://www.sec.gov/Archives/edgar/data/1341439/000119312515235239/d920711d10k.htm [Accessed: 14 July 2016]
Trading economics (2016). United States – Economic Indicators. Retrieved from http://www.tradingeconomics.com/united-states/indicators [Accessed: 14 July 2016]
