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SUBMITTED TO: PROF. V. SEKHAR
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ABHISHEK.BANSAL RAGHAVENDRA MISKIN KRITIKA PRABHAKAR SURAJIT GOGOI NIRAJ R VAIBHAV MISRA
and attract and retain customers. California. As more and more companies transform themselves into ebusinesses. they were out to prove wrong the prevailing theory that relationship databases could not be commercially viable. The founders believe that Oracle. Oracle is the first software company to develop and deploy 100 percent internet-enabled enterprise software across its entire product line: database. Ellison and a few associates formed Oracle in 1977. When CEO Lawrence J. enterprise business applications. . Ellison and his few associates. meaning source of wisdom. mainframes and massively parallel computers. workstations. The company was initially founded by Lawrence J. and application development and decision support tools. server. USA. Bob Miner and Ed Oates found Software Development Laboratories. By replacing expensive. tools and application products.ALLIANCE BUSINESS SCHOOL ORACLE Oracle Corporation (Nasdaq: ORCL) is the world's leading supplier of software for information management. The company was founded in the year 1977 at California. and support services. in more than 145 countries around the world. • A comprehensive suite of Internet-enabled business applications. unwieldy client/server computing models with the efficiency and reach of the internet. as well as on personal digital assistants and set-top devices. improve business process efficiencies. Larry Ellison. companies can deploy a wealth of innovative applications that can be accessed with a Web browser. education. the three decide to build a new type of database called a relational database system. Their original project is for the government and is titled Oracle. and the world's second largest independent software company. Oracle's Internet-enabled solutions provide a cost-effective way to expand market opportunities. Oracle provides: • An Internet-ready platform for building and deploying Web-based applications. Oracle software runs on PCs. the company offers its database. With annual revenues of more than US$23. minicomputers. Oracle is the only company capable of implementing complete global e-business solutions that extend from front office customer relationship management to back office operational applications to platform infrastructure. along with related consulting.25 billion. The only software company to offer a full suite of e-business products. Headquartered in Redwood Shores. would be an appropriate name for their project and receive permission from the CIA to use it. Inspired by a research paper written in 1970 by an IBM researcher titled "A Relational Model of Data for Large Shared Data Banks".
Jeffrey O. Catz. Oracle also supports around 500 communication companies providing and developing their infrastructure with software’s that meets their daily requirements. These products run on Grids which is unique to Oracle. Safra A. and supply chain management. Oracle’s Corporate Strategy hasn’t changed over the years. Charles Phillips. They offer various types products down the line including Database Products. Application Products and Scale Products. these products also run on Grids. has Oracle provided their services to almost 2000 government organizations around the globe. Secure. Reliable and Lowest cost. Oracle’s e-Business Suite is adopted by 3 of the top 5 most profitable Fortune 100 communication companies. Oracle also operates the world’s three largest genome database. President. Oracle has maintained its focus on developing top-of-the-line software for all types of business-oriented applications. . Middleware Products. The key people of the company are Larry Ellison. as well as in designing. customer relationship management. Global retailers like Wal-Mart uses Oracle aided software’s to keep track of their inventory level. Middleware Products are also based on Open Standards.ALLIANCE BUSINESS SCHOOL • Professional services for help in formulating e-business strategy. Oracle also provides assistance to 20 of the top 500 Global oil and gas companies including ESSAR and British Petroleum. The primary industry that the company produces software for is database and file management functions of business. Chairman. Henley. These products are completely integrated and provide the lowest costs of operations. These products are also completely integrated and extensible. Oracle has become a highly recommended supplier catering the needs of the 24 of the World’s top 25 financial institutions. Scale Products are completed and integrated stack which performs between Database and applications. For such reasons Oracle has been referred to as a Standard Based Company. Database Products are based on Open Standards. customizing. Like Middleware products. The 22 agencies that comprise the Department of Homeland Security are also dependent on the software provided by Oracle. Other types of business applications that the software is used for are for supporting business operations. Over 3600 educational institutions worldwide run on Oracle.000 Database customers worldwide. These products can be customised according to the choice of the customers thus providing a scope of unlimited application and fusion. Application Products are built on Standard Based Middleware and Database. Co-founder and CEO. These products provide the industry’s Best of Breed Functionality. data warehousing. Oracle provides support to the major 500 global airlines companies. President. These products are Fast. Not only among the private clients. assisting in collaboration and application development. The company has over 74. and implementing e-business solutions.802 employees and 300.
ALLIANCE BUSINESS SCHOOL These products can move beyond ERP and into Mission-Critical Operation Processes. These products have become the number one in all Businesses including utilities. The various products offered by Oracle focuses on the following Prime areas: - .
Email Calender. Projects. Supply Chain Management and Technology. Collaboration Suite Compliance. E-Business Suite CRM. It claims to have more than 880 customers in over 135 countries on its financial services. ORACLE FINANCIAL SERVICES SOFTWARE LTD. Database Business Intelligence. Human Resource. Financials. Oracle Financial Services is majority owned by Oracle Corporation. Oracle Financial Services Software Limited (formerly called i-flex Solutions Limited is an IT solution provider to the Banking industry.ALLIANCE BUSINESS SCHOOL Products Specializations Application Server Business Intelligence. . Mobile and Portal Security. J2EE/Web Services. Files and Ultrasearch. RAC and Security. enhance customer service levels and mitigate risk as per oracle analytics financial services solutions. Web Conferencing and Wireless and Voice. Voicemail and Fax. respond rapidly to market needs. custom solutions and consulting services enable financial institutions to cut costs. Its range of applications software.
ALLIANCE BUSINESS SCHOOL SWOT analysis .
94% 8.41% 17.7% Source: Oracle’s Annual Report 2008 Three areas the firm particularly excels in are research and development.21% 12.79% 27.20% 11. Oracle has put its expertise to use in its own company saving more than $1 billion in operating costs by coordinating and streamlining all its business processes.64% 34.4% 70.88% 40.11% 82.78% 42.2% 15.0% 77. standardize. and automate”.7% 25. In 2003 spending represented 12% of total revenues. Spending on R&D has always been high.6% 20. form the core of its money saving strategy.3% 22. Profitability Gross Profit Margin Pre-Tax Profit Margin Net Profit Margin Return on Equity Return on Assets Oracle IBM Microsoft SAP Industry2 Market3 48.2% 8. Production and Information Systems: As a premier maker of business software.45% 17.4% 28.8% 12. “simplify. and marketing and sales.62% 6. That the company has achieved competitive advantage over its rivals is evidenced by the fact that its net profit margin and return on assets lead its competitors.98% 21. Its three tier approach.52% 85.49% 38.3% 7. and in 2004 the amount increased to 13%.ALLIANCE BUSINESS SCHOOL Competitive advantage of Oracle over its competitors Oracle has several distinctive competencies that have allowed it to gain competitive advantage over its rivals.15% 24.30% 26. production and information systems.7% 2.37% 9. . Research and Development: Research and development have always been a key focus at Oracle.75% 34.
000 consultants worldwide with the knowledge of how to implement Oracle technology and Oracle applications. network integrators. Further. It does this by lowering the total cost of its software by improving integration. assisting in collaboration and application development. system integrators/implementers. However. Oracle has made a commitment to focusing on the customer in its marketing and sales efforts. and improving the ease of use. lowering administration costs. internet service providers. Oracle has maintained its focus on developing top-of-the-line software for all types of business-oriented applications. education providers. and specific requirements. customer relationship management. and independent software vendors. data warehousing. the software giant has remained solely in the . in addition to Oracle’s own sales and service forces are indirect sales channels such as resellers. the company has adopted several different strategies which give them an extra edge over its competitors. Oracle has 11. Other types of business applications that the software is used for are for supporting business operations. Marketing and Sales: Following the late 2004 merger with PeopleSoft. The primary industry that the company produces software for is database and file management functions of business. These are: Corporate-Level Strategy: The corporate level strategy of the Oracle Corporation has remained relatively the same since it was first started. In addition to the above mentioned advantages of Oracle over its competitors. Oracle constantly strides to create competitive advantage by providing its customers with a higher return on investment. one might think that Oracle would branch out into other industries. decreasing installation times. the sales force at Oracle increased 65%. In addition. processes.ALLIANCE BUSINESS SCHOOL In the creation of the service it provides to its customers. This allows the firm to engage its customers face to face and to learn and understand a customer’s organization. and supply chain management With all of the resources at the company’s disposal.
One example of this new market entry by Oracle was its release of the Business Intelligence 10g application. As mentioned earlier.ALLIANCE BUSINESS SCHOOL software industry.S. standardization. moving the company into the enterprise content management software market. Oracle simplifies through its Information Architecture. but this isn’t to say it hasn’t expanded its product line to enter new markets of the software industry. which consolidates organization information into one database to allow companies to better connect . branched out into other industries such as the video game industry with the release of the highly popular X-BOX. Microsoft has. The fact that Oracle ranks first in database customer satisfaction for product features should say something for the quality of its products. The company has also found recent success in the automotive industry to which it provides software to serve a very wide range of functions and it provides this software to nearly all automakers in the U. the company gained a large segment of the market and this also allowed the company to expand its applications R&D budget. The innovations of Oracle include the clustered database. Oracle may not be compelled to enter new industries to remain competitive. being the first software company to develop and deploy 100 percent Internet-enabled enterprise software. Because Oracle can offer more features and functions than other similar database software. in the recent past. Business-level Strategy: The business-level strategy of Oracle is to gain a competitive advantage over others in the enterprise software market through its innovation and quality of products. continuing its long battle with Microsoft for the top position. Oracle did not follow its main competitor on this move. It has also recently been reported that nearly 70% of the 1000 largest U. With such a wide range of software product offerings. customers attribute a higher quality to Oracle software. and automation. Oracle creates value for its customers through simplification. With the takeover of PeopleSoft Corporation in January 2005.S. and many overseas companies. companies now use software developed by Oracle. It is these innovations that also lend to the perception of the quality of the Oracle products. and availability on different platforms.
Oracle is always looking for new innovations as well as ways to increase the quality of its products. This automation permits companies to manage their entire infrastructure as one large computing system. Those four are: Java which has been used by many of Oracle's partners and competitors (such as IBM) would provide Oracle fusion over its middleware and database technology stack. and others. IBM. Solaris represents a blow to another shared villain of Oracle and Sun: Microsoft.org on top of its own collaboration tools.ALLIANCE BUSINESS SCHOOL all of their business systems and applications. standards-based technologies for infrastructure and applications. Although it is already the leader in the database software industry. Sun's infrastructure software includes four fantastic assets that address several competitive issues in the short term. In addition to open access to a vast community of developers. VMware. Another advantage that Oracle has gained over their competitors is its acquisition of Sun Microsystems which was an astounding move that will enhance Oracle's ability to compete against Microsoft. Since Oracle is so well known and is the largest enterprise software provider it does not have to rely on a cost leadership strategy in order to be competitive. Oracle software offers a higher level of automation than older-model applications. especially at a time when Microsoft's leadership is being brought into question. Oracle’s Information Architecture maximizes compatibility through standardization by providing integrated. Sun also has expertise and strong involvement in OpenOffice." . having a rock-solid operating system as an alternative to Windows Server could be a very decisive component for Oracle. it could be a game-changer for these solutions. this allows Oracle to charge above-average prices and reap the profits while still remaining competitive with other companies. With the help of Oracle's sales power.
Emerging markets have a first mover advantage.ALLIANCE BUSINESS SCHOOL MySQL open-source database: With the acquisition of SUN Microsystems. if the host product is new or has low awareness. if the host product is new or has low awareness. Since these markets allow greater scope for growth oracle taps them and constantly moves from one market to the next untapped emerging market. or if the ingredient brand can provide the product with a legitimate quality advantage over its competition. A product or a service offered by Oracle sells solely because of the brand name attached to it. then the ingredient branding strategy can be highly effective. or if the ingredient brand can provide the product with a legitimate quality advantage over its competition. if its technology is complicated. 2. For instance. Oracle can take this business to the next level by putting the right resources behind it. brazil. . States in Africa. China. India. In order to achieve this they do the following:1. Focus on ingredient branding. Emerging markets are used to describe a nation's social or business activity in the process of rapid growth and industrialization. if its technology is complicated. then the ingredient branding strategy can be highly effective. like Java. Core Competency and Market Strategy The core competency of oracle is that everyone knows about the brand and it is their name that sells. This would be another blow to Microsoft by being positioned as a direct competitor to Microsoft's SQL Server. They concentrate on emerging markets. Mexico. Denver Colorado.
the concentration of affluent populations. and low market development. price controls. low education levels. They are inhibited by oligopoly or monopoly control of scarce assets. Behavioural advantages are aided by governmental support. and political uncertainty. and marketing conditions in emerging markets have both positive and negative effects on first mover advantages. and by low technological competition. foreign investment restrictions. indirect and fragmented distribution systems. technological. governmental support. First mover pre-emptive advantages are enhanced by the predominance of low quality goods and services. Technological benefits are facilitated by low per capita income. which creates opportunity for economically priced goods derived from first mover process efficiencies. nominal patent and trademark protection. and lack of enforceable commercial laws and weak judicial systems. low competition. First mover economic advantages are facilitated by low labor costs. Economic advantages are diminished by emerging market conditions of low per capita income. Technological advantages encounter mostly inhibiting conditions in emerging markets: low technological development. lack of marketing sophistication. These advantages are somewhat diminished by a predominance of . These help first movers establish prototypically(the ability of the product to establish the ideal or set the standard for its product category) and reputation effects. emphasis on personal relations in commercial transactions. political. social. pent-up buyer demand. tariff and non-tariff barriers.ALLIANCE BUSINESS SCHOOL Emerging Market Conditions and First Mover Advantages: The research review suggests that economic. dual economies (highly skewed internal income distributions that create short-term opportunities for first movers). poor infrastructure. These conclusions are tentative and merit further investigation. economic growth. and tariffs and import limits. and limited marketing sophistication. and low levels of advertising. limited qualified technical personnel.
underdeveloped communication infrastructures.ALLIANCE BUSINESS SCHOOL inexpensive local products. (source: ) . Hence. but also succeed via their ingenuity. technological. tenacity. Managerial Implications Any consideration of a pioneering strategy for an emerging market should be accompanied by an evaluation of a host of economic. political. The third implication relates to the larger question of whether or not it pays to be a pioneer in an emerging market. and cultural fragmentation. the notion that first mover advantages accrue automatically by virtue of entering ahead of others must be further investigated in the context of emerging markets. companies need to account for the endogenous (internal) qualities that may uniquely qualify some firms not only to embrace the risks and costs associated with being first in these markets. Such firms will be able to enter markets ahead of the pack. overcome negative conditions and thrive. Many conditions specific to developing markets moderate first mover advantages. social. and resources. reaping many benefits for a long period of time. and marketing-related factors. Although many emerging market conditions appear to inhibit rather than enhance first mover advantages. Another implication is that firms that have decided to be pioneers in emerging markets should expect environmental obstacles and prepare specific measures to overcome them.
They are the onsite sales team.ALLIANCE BUSINESS SCHOOL Distribution channel The distribution channel of Oracle. They have an initial round of meetings during when the sales manager understands the exact needs of the customer. Oracle has indeed taken the challenge head on and proved why they are the world leader in what they do. is significantly different from other channels. reaching out to potential clients. That’s because of the efficient distribution channel of Oracle. Oracle has an Inside sales team in India where executives make calls. 1 company would be interested to take a demo. Roughly. who meets the customer. Let’s assume that the interested company is in Brazil. There are around 2000 Business development Executives (BDE). for every 15 calls that a BDE makes. These executives report in to an onsite sales manager. Hence it’s a real challenge to maintain an efficient supply chain. The customers ask for . Oracle is a truly global company with its presence in more than 100 countries. This BDE reports this prospective client to the sales team in Brazil. They sales executives there will set up a meeting with the interested company. predominantly a product based company.
processor licensing is required. then they send a Request for Information (RFI) to the pre-sales team. If the client is still satisfied with the RFP. Pricing Oracle has two primary pricing models. disclosure agreement etc. The transition team is responsible for the implementation of the product at the client place. From here. The Processor pricing model is based on the number of processors a customer has installed and the number of those processors that the customer has operating. This might even run up to 100 pages.ALLIANCE BUSINESS SCHOOL specific technical information to the sales manager. This is a detailed document which explains the legal clauses. The pre-sales team is no longer involved. RFP is sent by Oracle to the client. The transition team takes over from here. Then. The detailed discussion about the pricing is discussed at this stage. In a product company. The pre-sales team then sends a Request for proposal (RFP) to the client. an agreement is signed. This team has the technical experts. If they client is satisfied with the RFP. If there are any disagreements at this stage. the top people from Oracle (Director or VP) meet with the top people of the client and negotiate to reach an agreement. This model is easily measured. Named User Plus is ideal for organizations with discrete and countable user populations. All human users and non-human . For uncountable populations. This team also is involved in maintenance of the product. Named User Plus Metric This metric is used in environments where users can be identified and counted. They either do a video conference or travel to the client’s place. the project starts. a fact that makes costs transparent for our customers. Named User Plus includes both humans and non-human operated devices. If the client is satisfied with the presentation and demo. a work order is generated and rate charts are prepared. Customers can choose between Named User Plus and Per Processor pricing models based on their specific needs. This is the overall distribution channel that Oracle follows. They prepare the collaterals and the presentations to be given to the customer. error fixing etc. He then involves the Pre-Sales team. demo happens before RPI and RPF. RFI is sent by the client to Oracle. the pre-sales team gives a technical presentation and a demo to the customer.
implementation & promotion of the product. It is important to note that if the device is operated by a person. The Processor metric is also used when it is more cost effective than Named User Plus licenses. Under Divisional Managers are the sales & delivery personnel who take care of the sale initiation and closing. Under consulting division the divisional head is preceded by the divisional manager who precedes the consulting team. All processors where the Oracle programs are installed and/or running must be licensed. Under each divisional head there are divisional managers who are responsible for the planning. Services. . People and Processes Oracle Financial Services Software Ltd. has a broad hierarchy depending upon the products/services offered and has a two way communication channel. The consulting team helps the prospective customers in defining their needs and thereby offering the best solutions to the prospects. Consulting and Support Functions. Products.ALLIANCE BUSINESS SCHOOL operated devices that are accessing the program must be licensed. In case of Services division the order is similar to that of a product division but with much a less number of personnel involved at each stage. Under product division there are many division heads based upon the geographical requirements. provided that the minimum on each server is met. Broadly there are four offerings from OFSS viz-a-viz. Per Processor Metric This metric is mostly used in environments where the software users cannot be easily identified or counted. such as internet-based applications. The number of required licenses shall be determined by multiplying the total number of cores of the processor by a core processor licensing factor. such as. A non-human operated device can be many things. A licensed Named User Plus may access the program on any instances where it is deployed. a temperature monitoring device. then this person must be licensed.
Team work. OFSS is a people-centric organization where the core values are Fairness. Customer Focus. . Respect to Individuals. Openness. the organization has been extremely mature – in 1994 the company was assessed at Level 4 in the SEI CMM model. training and administers them to provide high level of customer satisfaction by facilitating the customers with correct services support. It involves recruiting the right people. People are treated assets. Quality & Meritocracy. The information is disseminated across each of the division till the end customer.ALLIANCE BUSINESS SCHOOL The support function is of great importance since it is responsible for the after sales support and other queries. in 1999 at Level 5 & in 2008 we were at Level 5 of CMMi. On the process side. There is enough scope for “Re-use” & learning for all as part of induction.
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