SWOT Analysis Of Oracle analyzes, Oracle is a computer technology corporation best known for its software products and services like Java. Through the company’s four main business segments—cloud and license, hardware, and services—Oracle sells its cloud-engineering services and systems and database management systems. Oracle is known as a global leader in enterprise software and IT solutions. Itas cloud computing and database packages are well-known throughout the industry, but the company also has relied on an aggressive acquisition strategy to bolster its portfolio.
Did you know?
Larry Ellison, the founder of Oracle, owned several aircraft and two military jets whiles a licensed pilot himself.
Founding of Oracle. In 1977, Larry Ellison, Bob Miner, and Ed Oates started the consultancy Software Development Laboratories, which became Relational Software, Inc. (RSI). In 1983, RSI became Oracle Systems Corporation and then later Oracle Corporation. First commercially available RDBMS. If you’re looking for a software firm with lots of achievements and impressive technology, or if you’re hungry to learn something new, then Oracle is absolutely worth the effort.
This can only be achieved through a firm with extensive knowledge, experience, and innovative strategies. To determine the strengths of the company potential, weaknesses, opportunities, and threats, it is necessary to conduct a SWOT analysis by Oracle.
Oracle At A Glance – SWOT Analysis Of Oracle
Company: Oracle Corporation
Founders: Larry Ellison | Bob Miner | Ed Oates
Year of establishment: 16 June 1977, Santa Clara, California, United States
CEO: Larry Ellison
Headquarters: Austin, Texas, United States
Employees (Dec 2020): 132,000
Ticker Symbol: ORCL
Annual Revenue (Dec 2020): US$40 Billion
Profit net income (Dec 2020): US$13.75 Billion
Products & Services: Infrastructure | Analytics | Autonomous Database | Application Development | Applied Advanced Technologies | ERP—Financials Cloud | HCM Cloud | SCM and Manufacturing Cloud | Customer Experience Cloud | Analytics Cloud | EPM Cloud | Data Cloud | Communications Security Shield Cloud
Company Website: www.oracle.com
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Oracle SWOT Analysis – SWOT Analysis Of Oracle
SWOT Analysis Of Oracle analyzes the brand based on its strengths weak points, weaknesses, opportunities, and threats. With Oracle SWOT Analysis it is clear that the advantages and disadvantages are internal factors, while threats and opportunities are external elements. Here we are going to talk about Oracle SWOT Analysis. Below Is The Detailed SWOT Analysis Of Oracle.
Oracle Strengths – SWOT Analysis Of Oracle
- Outstanding performance in new Markets Superb Performance in New Markets Oracle has developed expertise in opening new markets and achieving success of these markets. The expansion has allowed Oracle create a new revenue streams and diversify risk of the economic cycle within the markets that it is involved in.
- A track record of success in merging complementary firms via mergers and acquisitions. It has successfully integrated a number of tech companies over the last few years to simplify its operations and establish a solid supply chain.
- A strong distribution network – Through the years, Oracle has developed a solid distribution network that has the capacity to reach most of its market.
- High Returns on Capital Investment The company has a good return on capital expenditure Oracle has been relatively successful in the implementation of new projects. It has also have produced high return on capital investment through the creation of the new streams of revenue.
- A high level of satisfaction with customers The company, with its dedicated department of managing customer relationships is able to attain an excellent level of satisfaction from its existing customers and an excellent brand image among prospective customers.
- A track record of success in the development of innovative products and services.
- A Strong Brand Portfolio Through the years, Oracle has made investments in building a robust brand portfolio. The SWOT analysis conducted by Oracle highlights this fact. The brand portfolio is very beneficial if an business is seeking to enter new categories of products.
- A strong dealer community has created a culture of dealers and distributors where dealers don’t just market the products of the company, but also train the sales staff to show the client how to get the maximum benefit from the product.
Oracle Weaknesses – Oracle SWOT Analysis
- The promotion of the product left many things to be wanted. While the product is an excellent product in terms of sales but its positioning and distinctive selling point isn’t clear, leading to attacks on this sector from rivals.
- Days inventory is very high compared to other companies – requiring it necessary for the business to raise funds to fund the channels. This could impact the growth rate of Oracle
- The amount invested on Research and Development is below the top performers in the field. Although Oracle has spent more than the industry average for Research and Development, it is unable to keep pace with the most prominent players in the market in regards to the pace of innovation. Oracle has been perceived as an established company that is looking to release products that are based on the tested technologies that are currently available in the market.
- Poor at forecasting the demand for its products that results in a higher percentage of missed opportunities than its rivals. One reason the inventory levels are high in comparison to competitors is due to the fact that Oracle is not great at forecasting demand and ends with a higher inventory, both within the organization and through channels.
- A limited success outside of core business . Oracle is among the top companies in its field, it has had difficulties transitioning to other product areas within its current style of operation.
- There are some gaps in the range of products offered by the company. This is a problem that could allow a new competitor to gain advantage on the market.
- Oracle hasn’t been capable of tackling the issues presented by the newcomers in the sector and has been losing market share in small-scale categories. Oracle needs to develop an internal feedback system directly from its sales representatives on the ground to address these challenges.
Oracle Opportunities – SWOT Analysis Of Oracle
- New customers have come from the online channels – In the last few years, the Oracle has invested huge amounts of money in the online platform. This investment has created a new channels for sales for Oracle. In the coming years, Oracle will be able to capitalize on this opportunity by understanding its customers better and addressing their needs through massive data analytics.
- Lowering the cost of transportation as a result of lower shipping costs can lower the cost of Oracle’s products , thereby offering a chance to Oracle to increase its profits or transfer the advantages to customers in order to increase market share.
- Recent trends in consumer’s behavior could open up a an entirely new market for Oracle . This is a wonderful chance for the company to develop new income streams and broaden its product offerings as well.
- The latest technology offers the opportunity for Oracle to adopt a an innovative pricing strategy in the current market. This will allow the company to keep its loyal customers with excellent service, and also attract new customers by offering other propositions that are value-based.
- New markets are opening up through government agreements – the adoption of the latest technology standard and the freedom of trade agreements has given Oracle the opportunity to join an emerging market.
- Environmental policies that are new – These opportunities will result in an even play field that is open to all players in the field. This is a fantastic possibility for Oracle to demonstrate its competitive advantage in technologies and increase shares in the emerging product segment.
- The new tax policy could dramatically alter the way of conducting business. It could also provide new opportunities for established players like Oracle to improve its profit margins.
- The growth in the market will result in the dilution of the advantage of competitors and allow Oracle to boost its market share compared to other competitors.
Oracle Threats – Oracle SWOT Analysis
- A shift in consumer behavior due to the online channels could pose an attack on the current physical infrastructure-driven the supply chain.
- Pay increases, especially those like $15 per hour, and rising prices in China could put severe stress on the profitability of Oracle
- The growing trend towards isolationism in the American economy may trigger similar responses from other governments and negatively impact international sales.
- Stable profitability – Intense competition has added more companies in the industry over the past two years, which has put pressure not only on profitability but also sales overall.
- The rising cost of raw materials could be an issue for Oracle business’s profitability.
- There is no regular supply of new products. Over time, the company has come up with a number of items, however they are typically a in response to developments of other companies. Additionally, the availability of new products isn’t regularly occurring, which results in large and low variations in sales numbers over a period of time.
- New regulations on the environment under the Paris accord (2016) could pose an issue for certain product categories .
- The demand for the high-profitable products is seasonal in nature , and any unexpected event that occurs during peak times could affect the financial performance of the business in the short to medium-term.
Oracle SWOT Analysis Overview Template
This is the SWOT report that Oracle has done. Please let us know if you have additional suggestions to add.
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