Business Case Studies, Restructuring / Turnaround Strategies Case Study, Sun Microsystems, Turnaround Efforts

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Restructuring / Turnaround Strategies Case Study

Case Title:

Turnaround Efforts at Sun Microsystems

Publication Year : 2003

Authors: T Phani Madhav

Industry: Engineering, Electrical and Electronics


Case Code: RTS0003

Teaching Note: Not Available

Structured Assignment: Not Available

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Sun Microsystems is having a tough time with increasing competition in the server market. It has become 'defensive', with the likes of Dell, Microsoft and Intel encroaching the low-end and companies like IBM and HP-Compaq giving it a torrid time in the high-end of its market. Despite such obstacles, Scott McNealy, CEO of Sun, refused to make products that could work in tandem with other companies' technologies and stuck to his original strategy of making all the components in house, which included its own chips, the SPARC microprocessors, and its operating system, the Solaris.

Pedagogical Objectives:

  • To understand the competitive scenario in the global server market
  • To analyse Scott McNealy's strategies to turnaround Sun Microsystems and whether the company needs to change its course and partner with its competitors.

Keywords : Turnaround; Restructuring; Scott McNealy; Sun Microsystems; Price wars; Restructuring / Turnaround Strategies Case Study; Wintel; Competition; Network computing; Technology; Server market; Solaris; Revival plan; Linux; Java; Network 1

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