The Oracle Corporation was established by Robert Nimrod Miner, Edward A. Oates, and Lawrence J. Ellison in 1977. It is an American company, with the headquarter located in California. It is one of the leading IT giant in the industry with over 135,000 employees that include engineers, developers, support personnel, and consulting experts, worldwide (data from 2016). The Oracle also builds and develops the database systems and development tools of the middle tier software, ERP- Enterprise Resource Planning software, CRM- Customer Relationship Management software and SCM- Supply chain Management software. Oracle has successfully positioned itself as the IT giant by offering the bouquet of different interrelated products of IT and services to the consumers. It used “User Benefit positioning” as the strategy for the growth purpose. It is known to be as the pioneer in the database management and integrated itself with the cloud service system for helping consumers in retrieving, manipulating and securing the data. Oracle has 3, 10, 000 database consumers (2016 data) (Oracle, 2018).
Oracle is successful because of its continuous consideration towards the sales and marketing planning, which could be mainly achieved through BCG matrix analysis. This helps the company in evaluating the company’s offerings in two main dimensions; market share and market growth, which helps the company in making future strategies. The detailed BCG matrix analysis of Oracle is discussed below;
Cash Cows
These products are have the high market share relatively to the growth rate it has. But possess the potential to grow in the future, if effective considerations are paid to them. They bring more profit than they consume. The large portion of the profits are mostly utilized for the question mark items of the companies. Oracle’s hardware platform business is considered as the cash cow, as it has high demand in the market as compare to other products. With the help of efficient marketing positions, Oracle will be able to turn it into star item (Oracle, 2018).
Stars
Stars are the units of the business which have high ratio of both main factors; share and growth rate. The Products under this category need large sum of investment and continuous consideration for retaining the market position. This category promises to bring the huge return in the business in long run. Oracle’s software and applications are the star items. Majority of the companies use the Oracle’s software, because of its efficiency, easy to use, and quick response. It covers the entire retailing industry vertically, by providing the merchandise management, invoice matching, price management, store operations, allocation management, demand forecasting, warehouse management, financial planning of merchandise, category management and assortment planning. Consumers can easily access these facilities through browser interface on internet or through corporate intranet (Bhasin, 2018).
Question Marks
The items in this category are also called problem child. They have low market share but high market growth rate. For evolving such products in stars, heavy investments are needed, and these are worth for investing as they have the potential for profits in long run. Because of the strategic development, these products can be evolved into stars and then the cash cows. For the Oracle Corporation, its business units of cloud services are still evolving and facing tough competition from different companies such as; Amazon, Google etc. Lots of research and approaches are required along with investment for cloud services to be successful (Bhasin, 2018).
Dogs
These are the products with low market share and market growth, which means, if company shuts down the operations of these items, it will not affect the company. There are no such products or services that falls in this category of Oracle up till now. But there might be possibility that cloud services could be dog items for different country’s users.
References
Bhasin, H. 2018. Marketing strategy of Oracles. [Online], Available at: https://www.marketing91.com/marketing-strategy-oracle/, [Accessed on: 25th August, 2018].
Oracles, 2018. About us. [Online], Available at: https://www.oracle.com/newsletters/sap/index.html. [Accessed on: 25th August, 2018].
Oracle, 2018. Hardware. [Online], Available at: https://www.oracle.com/engineered-systems/index.html, [Accessed on: 25th August, 2018].
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