SWOT Analysis for Oracle Sun Acquisition [Detailed]

SWOT Analysis for Oracle Sun Acquisition focuses on Strength, Weaknesses, Opportunities, and Threats. Strengths and Weaknesses are internal factors and Opportunities and Threats are external factors.

SWOT Analysis provides a well-tested management methodology that enables Oracle/Sun Acquisition in comparison with competitors and industry to assess its business performance.

swot analysis of oracle sun acquisition

The acquisition strategy is fundamentally adapted by giants to expand their market share and technological footprint and satisfy the rising demands of their clients. Oracle acquired sun for $7.4 billion. Both Oracle and IBM have always been inclined to gain Sun for different purposes, such as Java, Solaris, Mysql, etc. For different motives below, we examined how the acquisition would benefit oracle.

Strengths in the SWOT Analysis of Oracle Sun Acquisition

  • Both the oracle and the sun have a very good range of product. Both had a very large product line since the merger, complementing each other in their hardware and software domains.
  • The merger will lead to technological collaborations leading to superior results and creative techniques.
  • Sun and Oracle both have very high brand value in the market.
  • The Sun contract with Oracle was worth around $7.4 billion. This poses a big challenge to Oracle’s rivals.
  • The partnership between the two has been more than 20 years, and even after the merger, there will not be any friction.
  • Customer base extension. Its customer base is expected to grow in both value and volume following the acquisition plan by Oracle. For example Google, yahoo, FB, etc are users of Mysql, a sun product, etc.

Weaknesses in the SWOT Analysis of Oracle Sun Acquisition

  • Quite shortly after the purchase of the share price of Oracle, there was a fall
  • This resulted in a delay in the decision-making process for both clients and staff to have a deep commitment.
  • “After acquisition, every company has an issue of uncertainty about how the culture of the company will be and the process and policies of the company will be? ”
  • Open source-has a big downside that there are no revision controls and it is not possible to trace the improvements made by the developer. This would make it impossible to discover which edition is the new.
  • Sun has faced a drop in sales and income
  • In computer products, there were records of several uncertainties
  • After the takeover, the life of Sun’s current few brands was in question and Oracle dint came up with a simple solution to Sun’s clients regarding their potential technology collaboration and relationship

Opportunities in the SWOT Analysis of Oracle Sun Acquisition

  • Since both were leaders in their own fields, technological collaborations will contribute to pre-integrated components of software and hardware that complement nature.
  • Fussion Middleware is making good results and the company’s good revenue generating system
  • This would reduce the cost of deployment to clients and simplify the company’s activities.
  • With Sun’s client base, Oracle is willing to extend
  • Acquisition would help to grow their market share to become the technology leader with a richer blend of innovations.
  • Asian economies are emerging, and in Africa, etc., there is a tremendous opportunity for development over the coming decades.

Threats in the SWOT Analysis of Oracle Sun Acquisition

  • The negative result is that there are issues with the long-term relationship between HP and Oracle. HP and Sun Microsystems are direct competitors, and it produced several negative waves in the partnership environment between Oracle and HP when Oracle acquired Sun. 
  • Need for Open Source Version Control
  • The new economic recession has hit the IT market.
  • Because of the economic downturn, it is often impossible to gain new customers as customers will hesitate to adapt as moving costs to other digital platforms or updating technologies will incur heavy costs.

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