Oracle Corporation Blue Ocean Strategy Guide & Analysis| Assignment Help
Okay, here’s a Blue Ocean Strategy analysis for Oracle Corporation, structured as requested and adhering to the specified guidelines.
Part 1: Current State Assessment
Oracle Corporation, a multinational computer technology corporation, faces a complex competitive landscape. To identify uncontested market spaces, a thorough assessment of its current position is crucial. This involves analyzing its industry, mapping its strategic canvas, and understanding customer needs and pain points. This assessment will serve as the foundation for developing a strategic roadmap that enables sustainable growth through value innovation.
Industry Analysis
Oracle operates across several major business units, including:
- Cloud and License: This segment encompasses cloud services (IaaS, PaaS, SaaS) and software licenses. Key competitors include AWS (Amazon Web Services) with approximately 33% market share in IaaS, Microsoft Azure (23%), and Salesforce (SaaS leader with around 24% CRM market share). Industry standards revolve around scalability, security, and compliance. Profitability is high for cloud services, but license revenue is declining. Growth trends favor cloud adoption.
- Hardware: This segment includes servers, storage, and networking products. Competitors include Dell Technologies (17% server market share), HPE (15%), and IBM. Industry standards emphasize performance, reliability, and energy efficiency. Profitability is moderate, with growth constrained by the shift to cloud infrastructure.
- Services: This segment offers consulting, support, and education services. Competitors include Accenture, IBM Global Services, and Deloitte Consulting. Industry standards focus on expertise, responsiveness, and project management. Profitability is moderate, with growth tied to the adoption of Oracle’s products and services.
Overall industry profitability is concentrated among the top players in each segment. Growth is driven by cloud adoption, data analytics, and digital transformation initiatives. Accepted limitations include vendor lock-in, complexity of integration, and high upfront costs for on-premise solutions.
Strategic Canvas Creation
For the Cloud and License business unit, the industry competes on factors such as:
- Price: Cost per unit of computing power, storage, or software license.
- Scalability: Ability to handle increasing workloads and data volumes.
- Reliability: Uptime and availability of services.
- Security: Protection against data breaches and cyber threats.
- Integration: Ease of connecting with other systems and applications.
- Breadth of Services: Range of available cloud services and software products.
- Innovation: Introduction of new features and technologies.
- Customer Support: Responsiveness and effectiveness of technical support.
Plotting Oracle, AWS, and Microsoft Azure on a strategic canvas reveals:
- AWS: High on Scalability, Reliability, Breadth of Services, and Price.
- Microsoft Azure: High on Integration (with Microsoft ecosystem), Breadth of Services, and Security.
- Oracle: High on Reliability (especially for mission-critical applications), Security, and Customer Support (for existing customers). Oracle is perceived as moderate on Price and Integration (outside of Oracle ecosystem).
Draw Your Company’s Current Value Curve
Oracle’s current value curve shows strengths in Reliability, Security, and Customer Support, particularly for its established customer base. However, it lags behind AWS and Azure in Price and Integration (with non-Oracle systems). Oracle’s offerings mirror competitors in Scalability and Breadth of Services, leading to intense competition in these areas. The most intense competition occurs in the enterprise cloud market, where all three players are vying for market share.
Voice of Customer Analysis
Current Customers (30):
- Pain Points: High licensing costs, complex integration with non-Oracle systems, perceived vendor lock-in, slow response times for support in some cases.
- Unmet Needs: Simplified pricing models, better integration tools, more flexible deployment options (e.g., hybrid cloud), proactive support.
- Desired Improvements: Lower total cost of ownership, improved user experience, faster innovation cycles.
Non-Customers (20):
- Reasons for Not Using Oracle: High perceived cost, complexity, vendor lock-in, preference for open-source solutions, perception of Oracle as outdated.
- Unmet Needs: Affordable cloud solutions for small and medium-sized businesses, easy-to-use development tools, transparent pricing.
Part 2: Four Actions Framework
Applying the Four Actions Framework to Oracle’s Cloud and License business unit:
Eliminate: Which factors the industry takes for granted that should be eliminated'
- Complex Licensing Models: Eliminate the intricate and often confusing licensing agreements that are a source of frustration for customers. These add minimal value but significant administrative cost.
- Mandatory Long-Term Contracts: Eliminate the requirement for long-term contracts, which create vendor lock-in and limit customer flexibility.
- Feature Bloat: Eliminate rarely used features in software products that add complexity and cost without providing significant value to most users. Data indicates that 60% of features in typical enterprise software are rarely or never used.
Reduce: Which factors should be reduced well below industry standards'
- Sales-Driven Approach: Reduce the aggressive sales tactics that are often associated with Oracle. This over-delivers on pressure but under-delivers on trust.
- Customization Options: Reduce the level of customization offered for standard software products. While customization can be valuable, it often leads to increased complexity and higher costs. Focus on providing pre-configured solutions that meet the needs of most customers.
- Marketing Spend on Generic Campaigns: Reduce broad-based marketing campaigns and focus on targeted marketing efforts that address specific customer needs.
Raise: Which factors should be raised well above industry standards'
- Ease of Use: Raise the ease of use of Oracle’s products and services. This includes simplifying the user interface, providing better documentation, and offering more intuitive tools.
- Transparency: Raise the level of transparency in pricing and licensing. This will help to build trust with customers and reduce the perception of hidden costs.
- Proactive Support: Raise the level of proactive support offered to customers. This includes providing early warnings of potential problems, offering personalized recommendations, and providing faster response times.
Create: Which factors should be created that the industry has never offered'
- Outcome-Based Pricing: Create pricing models that are based on customer outcomes rather than usage or features. This would align Oracle’s incentives with those of its customers and provide a more compelling value proposition.
- Open Ecosystem: Create an open ecosystem that allows customers to easily integrate Oracle’s products and services with those of other vendors. This would reduce vendor lock-in and provide customers with more flexibility.
- Industry-Specific Solutions: Create pre-configured solutions that are tailored to the specific needs of different industries. This would reduce the need for customization and provide customers with faster time to value.
Part 3: ERRC Grid Development
| Factor | Eliminate | Reduce
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