Oracle Corporation: objectives, competitive strategy, business model, CAGR

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ORACLE'S BUSINESS STRATEGY

Oracle's business strategy is to continue making its profits from Oracle Information Architecture and software licensing while making efforts to enter the field of consulting and education.

Oracle Corporation, incorporated in October 1986, is an enterprise software company that develops, manufactures, markets, distributes and services database software and infrastructure software, including application server, collaborative software and development tools that help its customers manage and grow their businesses and operations. The Company also offers a suite of business applications software.

Generic Strategy of Oracle
This differentiation. However, in the field of software and E-business suite differentiation hurts, the software is often not compatible with the operating systems of its competitors especially Microsoft and so oracle loses out on business.

THE STRATEGY OF SEGMENTATION
The Company is organized into two businesses that are further organized into five operating segments. Its software business consists of two operating segments: new software licenses and software license and product support. The Company's services business consists of three operating segments: consulting, advanced product services and education. The software business represented 79%, 76% and 73% of total revenues, and the services business represented 21%, 24% and 27% of total revenues during the fiscal years ended May 31, 2004 (fiscal 2004), 2003 (fiscal 2003) and 2002 (fiscal 2002), respectively.

Business Model
The basic model is to continue making profits in the software business and at the same time make inroads into consulting and education. Please note that there is no evidence that Oracle is really trying to become a leader in consulting or education. In addition, the E-Business suite is a defensive strategy, so that customers may not be lost to competitors.
Software Business

New software licenses include the licensing of database technology software and applications software. The Company's software platform is based on an Internet architecture comprised of interconnected database servers, application servers and client computers or devices running Web browsers. This architecture permits end users to access business data and applications through standard Web browsers, while allowing enterprises to manage business information and applications from centralized locations. New software license revenues represented 35%, 35% and 36% of total revenues in fiscal 2004, 2003 and 2002, respectively.

Products under this segment include Oracle Information Architecture, designed to eliminate information fragmentation and provides basic integration across multiple applications; Database Technology, a platform for developing and deploying applications on the Internet and on corporate intranets; Oracle Database enables the storage, manipulation and retrieval of relational, object-relational, multi-dimensional and other types of data; Oracle Application Server, a consolidated software platform based on industry standards, makes it easier for developers to build and deploy Web services, Websites and portals and Web-based applications; Oracle Collaboration Suite, a suite that manages e-mail and voicemail messages, facsimiles, calendaring, file sharing, search and workflow; Oracle Developer Suite, development tools designed to facilitate rapid ...