Oracle final project

Strategic Management
Prof. Ashraf Labib
Group E
Mostafa Alaa Eldin Zidan (Reg. No.: 19121563)
Ahmed Mohamed Ali (19121728)
Omar Ahmed Hassan (19121748)
Strategic Management
Final Project

2 | P a g e G r o u p E Strategic Management (Prof. Ashraf Labib)
Mostafa Alaa Eldin Zidan (Reg.No.: 1912156) || Ahmed Ali (19121728) || Omar Ahmed (19121748)
Section 1: History, Vision, Mission, Financial Position and Generic Strategies................................................4
1. 1 Oracle History and Introduction............................................................................................................4
1.1.1 Why Choose Oracle as a Business Case for Strategic Management: ..................................................5
1.1.2 Oracle FY-2020 Achievements:............................................................................................................5
1.1.3 Oracle’s Core Vales: .........................................................................................................................5
1.2 Oracle Mission: ...........................................................................................................................................6
1.3 Oracle Vision:..............................................................................................................................................6
1.4 Governance Strategies:...............................................................................................................................6
1.4.1 Board of Directors: ..............................................................................................................................7
1.5 Oracle Financial Position and Financial Ratios:.........................................................................................10
Oracle Annual Revenue..............................................................................................................................10
Oracle Share Price ......................................................................................................................................10
Oracle Financial Ratios ...............................................................................................................................11
Oracle Free Cash in Hand ...........................................................................................................................12
1.5 Market Share, Competition and Line of Business:....................................................................................13
1.5.1 Ranking and Market Share in Software Industry...............................................................................13
1.5.2 Competition.......................................................................................................................................15
1.5.2 Industry Analysts Reviews for Oracle ................................................................................................15
1.5 Generic Strategies:....................................................................................................................................17
1.5.1 Prospectors Strategy .........................................................................................................................17
Section2: External Environment Analysis .......................................................................................................19
2.1 Oracle PESTEL Analysis: ............................................................................................................................19
Political Analysis: ........................................................................................................................................20
Economical Analysis: ..................................................................................................................................21
Social Analysis:............................................................................................................................................23
Technological Analysis................................................................................................................................27
Environmental Analysis: .............................................................................................................................29
Legal Analysis:.............................................................................................................................................32
2.2 Oracle Industry Environment Analysis (Porter’s 5 forces):.......................................................................35
2.2.1Threat of New Entrants: .....................................................................................................................35
2.2.2Threat of Industry Rivals.....................................................................................................................36
2.2.3 Threat of Substitutes Product or Services.........................................................................................36
2.2.4 Bargaining Power of Suppliers...........................................................................................................36

2.2.5 Bargaining Power of Buyers...............................................................................................................37
2.3 Value Discipline Triad: ..............................................................................................................................37
BCG Matrix For Oracle:...................................................................................................................................39
Industry Matrix for Oracle:.............................................................................................................................40
Section3: Internal Environment Analysis........................................................................................................41
Oracle Value Chain Analysis:...........................................................................................................................41
Oracle SWOT Analysis:....................................................................................................................................44
Strengths ....................................................................................................................................................45
Weakness....................................................................................................................................................45
Opportunities .............................................................................................................................................45
Threats........................................................................................................................................................45
Issue Priority Matrix: ......................................................................................................................................47
Issue Priority Matrix for SWOT...................................................................................................................47
Issue Priority Matrix for Value Chain Analysis............................................................................................47
VRIO Matrix for Oracle: ..................................................................................................................................49
Section 4: Four Corners Analysis ................................................................................................................50
4.1 Strategic Factors Analysis Summary (SFAS) for Oracle:........................................................................50
4.2 Internal Strategic Factors Analysis Summary (IFAS) Matrix for Oracle:....................................................51
4.3 External Strategic Factors Analysis Summary (EFAS) for Oracle: .........................................................52
4.4 Strategic Position and Actions Analysis (SPACE) for Oracle: ................................................................53
4.5 TWOS Analysis (SPACE) for Oracle: ......................................................................................................54
4.6 Quantitative Strategic Planning Matrix (QSPM) for Oracle:.................................................................55
4.7 Oracle Expansion Strategy....................................................................................................................58
Oracle Vertical Integration: ........................................................................................................................58
Forward Integration ...................................................................................................................................58
Oracle Acquisition Strategy: .......................................................................................................................58
General Business Solutions Acquisitions ....................................................................................................58
Concentric Diversification and Acquisition Plan.........................................................................................60

Section 1: History, Vision, Mission, Financial Position and
Generic Strategies
1. 1 Oracle History and Introduction
Oracle Corporation is an American computer technology corporation established 1977.
Headquartered in Redwood Shores, California.

1.1.1 Why Choose Oracle as a Business Case for Strategic Management:
I work in Oracle Egypt a subsidiary from Oracle Corporation U.S., Oracle is in the business for more that
40 years and it has a unique business strategies applied in the market, Oracle works on applying these
strategies to achieve business growth and market expansion, it’s very crucial for every employee to
understand the company strategies to be able to grow with the organization and to support the business
growth.
1.1.2 Oracle FY-2020 Achievements:
• US$40B total GAAP revenue in FY20
• 135,000 employees
• 430,000 customers in 175 countries
• 12,000 customer support and service specialists, speaking 29
languages
• #1 provider of business software, with a broad portfolio of
solutions for companies of all sizes
• #18 of 100 Top Global Brands
• More than 18,000 patents worldwide
1.1.3 Oracle’s Core Vales:
The following core values are the foundation of our company and are essential to Oracle’s business:

1.2 Oracle Mission:
Oracle Mission statement is “Our mission is to help people see data in new ways,
discover insights, unlock endless possibilities.”
1.3 Oracle Vision:
Our vision is to help the world run better and improve people s lives. Our
solutions help people, businesses, and institutions achieve economic
development, social progress, and environmental impact.
1.4 Governance Strategies:
Oracle's Board of Directors has adopted Corporate Governance Guidelines and committee
charters to help ensure it has the necessary authority and procedures in place to oversee the work
of management and to exercise independence in evaluating Oracle's business operations. These
guidelines allow the Board to align the interests of directors and management with those of
Oracle's shareholders.
A majority of the members of the Board of Directors of Oracle Corporation must qualify as
independent directors in accordance with the applicable provisions of the Securities Exchange Act of
1934, the rules promulgated thereunder and the applicable listing standards of the New York Stock
Exchange (collectively, the “Independence Rules”). The Nomination and Governance Committee of

the Board is responsible for reviewing with the Board the requisite skills and characteristics of new
Board members as well as the composition of the Board as a whole.
1.4.1 Board of Directors:
Oracle Board of Directors
Executive Directors Lawrence J. Ellison, Chairman of the Board and Chief Technology Officer
Safra A. Catz, Chief Executive Officer
Jeffrey O. Henley, Vice Chairman of the Board
Non- Executive Directors Jeffrey S. Berg, Chairman of Northside Services, LLC and Former CEO of
International Creative Management, Inc.
Michael J. Boskin, Professor of Economics and Hoover Institution Senior
Fellow at Stanford University
Bruce R. Chizen, Senior Adviser to Permira Advisers and Former CEO of
Adobe Systems Incorporated
George H. Conrades, Senior Advisor to and Former CEO of Akamai
Technologies, Inc.
Rona A. Fairhead, Former Minister of State, United Kingdom
Department for International Trade and Former Chair of the British
Broadcasting Corporation Trust
Renée J. James, Chairman and CEO of Ampere Computing, Operating
Executive at The Carlyle Group, and Former President of Intel
Corporation
Leon E. Panetta, Former Director of the Central Intelligence Agency and
Former US Secretary of Defense
William G. Parrett, Former CEO of Deloitte Touche Tohmatsu
Naomi O. Seligman, Senior Partner at Ostriker von Simson
Vishal Sikka, Founder and CEO of Vianai Systems, Inc. and Former CEO
and Managing Director of Infosys Limited
Charles Moorman, Senior Advisor to Amtrak and Former CEO of Amtrak
and Norfolk Southern Corporation
1.4.2 Board of Directors Responsibilities:
The basic responsibility of the directors is to exercise their business judgment to act in a
manner they reasonably believe is in the best interests of Oracle and its stockholders and in a manner
consistent with their fiduciary duties. In fulfilling that responsibility, directors may ask such questions
and conduct such investigations as they deem appropriate and may reasonably rely on the information
provided to them by Oracle’s senior executives and its outside advisors and auditors. The directors shall
be entitled to have Oracle purchase directors’ and officers’ liability insurance on their behalf and receive
the benefits of indemnification and exculpation to the fullest extent permitted by law, Oracle’s charter
and Bylaws and any indemnification agreements, as applicable.

The Board is also responsible for overseeing management’s efforts to assess and manage material risks
and for reviewing options for risk mitigation. The Board reserves oversight of the major risks facing
Oracle and may delegate risk oversight responsibility to committees of the Board.
Directors are expected to attend the Annual Meeting of Stockholders, regularly attend Board meetings
and meetings of committees on which they serve, to spend the time needed in preparation for such
meetings and to meet as frequently as they deem necessary to properly discharge their responsibilities.
The Chairman of the Board and the Secretary will establish and disseminate the agenda for each Board
meeting. At the organizational meeting of the newly elected Board, the Secretary will present a schedule
of agenda subjects to be discussed during the next twelve months (to the degree this can be foreseen).
Each Board member is free to suggest the inclusion of items on the agenda. Each Board member is free
to raise at any Board meeting subjects that are not on the agenda for that meeting. The Board will
periodically review with the Chief Executive Officers (“CEOs”) Oracle’s long-term strategic plans.
All directors are expected to comply with the Oracle Code of Ethics and Business Conduct; provided that
the provisions regarding conflicts of interest in the “Conflicts of Interest” section of these guidelines
shall apply to non-employee directors in lieu of the conflict of interest provisions contained in the Oracle
Code of Ethics and Business Conduct.
Board Committees
The Board will always have a Finance and Audit Committee, a Compensation Committee, a
Nomination and Governance Committee and an Independent Committee. All of the members of these
committees will be “independent” directors, as defined in the Independence Rules.
Committee members and chairs will be appointed by the Board upon the recommendation of the
Nomination and Governance Committee.
Each of the above standing committees will have its own written charter. The charters will set forth the
purpose, authority and responsibilities of the committees as well as qualifications for committee
membership, procedures for committee member appointment and removal, committee structure and
operations and how the committee reports to the Board. The charters of each standing committee will
be reviewed periodically with a view to delegating to the standing committees the full authority of the
Board concerning specified matters appropriate to such committee.
The chair of each committee, in consultation with the committee members and senior management, will
determine the frequency and length of the committee meetings consistent with any requirements set
forth in the committee’s charter. The chair of each committee, in consultation with the appropriate
members of the committee and management, will develop the committee’s agenda.
1.4.4 Director Access to Officers and Employees
Directors have full and free access to officers and employees of Oracle. Any meetings or
contacts that a director wishes to initiate may be arranged directly by the director or through the CEOs
or the Secretary. The directors should seek to ensure that any such contact is not disruptive to the
business operations of Oracle and will, to the extent necessary and appropriate, inform the CEOs of any
communications between a director and an officer or employee of Oracle.

The Board or the CEOs may request that certain members of senior management attend all or any
portion of a Board meeting and will schedule presentations by managers who: (a) can provide additional
insight into the items being discussed because of their personal involvement in these areas, or (b) have
future senior management potential.
1.4.5 Director Orientation and Continuing Education
The Board or Oracle will establish, or identify and provide access to, appropriate orientation
programs, sessions or materials for newly elected directors of Oracle for their benefit either prior to or
within a reasonable period of time after their nomination or election as a director. This orientation may
include presentations by senior management to familiarize new directors with Oracle’s strategic plans,
its significant financial, accounting and risk management issues, its Compliance Program, its Code of
Ethics and Business Conduct, its principal officers, and its internal and independent auditors. In addition,
the orientation will include visits to Oracle headquarters and, to the extent appropriate, other of
Oracle’s significant facilities.
1.4.6 Director and Executive Officer Stock Ownership
Directors and Executive Officers are required to own shares of stock in Oracle. The Nomination
and Governance Committee shall periodically review and recommend changes to the director and
Executive Officer stock ownership requirements.
1.4.7 CEO Evaluation
The Compensation Committee will conduct an annual review of each CEO’s performance and
compensation, as set forth in its charter (and may, in its discretion, consult for this purpose with the
Nomination and Governance Committee). The Board will review the Compensation Committee’s report
in order to ensure that each CEO is providing the best leadership for Oracle in the long-and short-term.
1.4.8 Performance Evaluation
The Board, led by the Nomination and Governance Committee, will annually conduct a self-evaluation to
determine whether the Board and its committees are functioning effectively. The full Board will discuss
the evaluation to determine what action, if any, could improve Board and committee performance. The
Board, with the assistance of the Nomination and Governance Committee, as appropriate, shall
periodically review these Corporate Governance Guidelines to determine whether any changes are
appropriate.
1.4.9 Management Succession
The Nomination and Governance Committee will periodically review and assess the adequacy of the
Corporation’s policies, plans and procedures with respect to succession planning, including policies and
principles for CEO selection and performance review, as well as policies regarding succession in the
ordinary course of business and in the event of unexpected events or emergencies.

1.5 Oracle Financial Position and Financial Ratios:
Oracle is the second software vendor by revenue, Oracle is well-known for its strong financial position
and long-term relationship with customers, Oracle focus mainly on B2B business, below some details
about the financial position for the company
• Market Cap $
191.24 B
• Revenue for FY2020 ($ 39.07 B)
• EPS (TTM) $3.30
• P/E Ratio (TTM) 19.70 as of (12/24/20)
Oracle Annual Revenue
Oracle is working on highly competitive environments however Oracle has a stable revenue along the
last years, Oracle has an expansion strategy to invest heavily in the coming years and Oracle focuses on
enhancing the revenues in the coming years.
Here’s a chart for Oracle revenues in the last 15 years.
Oracle Share Price
Due to the strong position for Oracle in the market and the strong financial position, Oracle share price
is in an increase mode during the last five years, below is a chart for Oracle price share during the last
five years.

Oracle Financial Ratios
Oracle has a strong financial ratio across the last years, which puts Oracle in strong position and
supported its capabilities to invest in new products and R&D and also allows Oracle to make strong
acquisitions.

Oracle Free Cash in Hand
Oracle is one of the biggest American companies with free cash in hand which allows Oracle to be in
very strong financial position which allows Oracle to invest in new products, services, Data Centers and
Projects, also this allows Oracle to make acquisitions and to invest in forward integrations and backward
integrations, here’s chart that clarify Oracle position in Dec-2020.
Oracle Cash and Short-Term Investments for the last five years.

1.5 Market Share, Competition and Line of Business:
Oracle works mainly in Software Industry with different business lines, every business line has it’s own
customers and competitors in the market.
1.5.1 Ranking and Market Share in Software Industry
Oracle is the second biggest software company by revenue along the years, Oracle focuses on
developing it revenues from software, below figure
Largest software companies by sales revenue from 2017 to 2020 (in billion U.S. dollars)
1.5.1.1 Database Line of Business
Oracle is has the biggest market share in database industry by far against its competitors, Oracle owns
almost 42% of the Database market, which puts Oracle as a market leader in this area.

1.5.1.2 ERP Line of Business
Oracle is ranked number 2 worldwide in the ERP industry Oracle provides multiple ERP solutions On-
Premises ERP Solutions (E-Business Suite, JD-Edwards, PeopleSoft), and also cloud ERP solution (Fusion
and NetSuite), Oracle is targeting to be number 1 ERP provider worldwide by 2030
1.5.1.3 CRM Line of Business
Oracle is ranked number 2 world wide in the CRM industry Oracle provides multiple ERP solutions On-
Premises ERP Solutions (E-Business Suite, JD-Edwards, PeopleSoft), and also cloud ERP solution (Fusion
and NetSuite), Oracle is targeting to be number 1 CRM provider worldwide by 2030
1.5.1.4 SaaS Line of Business
Oracle entered the cloud market later than other players in the market however Oracle now is ranked
number 5 in the SaaS market, Oracle is targeting to be number 1 SaaS market worldwide by 2030

1.5.2 Competition
Based on the different product lines we have a different competitor
1.5.2.1 Database Line of Business Competitors
• Microsoft
• IBM
• SAP
• Teradata
1.5.1.2 ERP Line of Business
• SAP
• Saga
• Workday
• Infor
1.5.1.3 CRM Line of Business
• Salesforce
• SAP
• Microsoft
• Adobe
1.5.1.4 SaaS Line of Business
• Salesforce
• SAP
• Microsoft
• Adobe
1.5.2 Industry Analysts Reviews for Oracle
Industry analysts classify Oracle as a market leader in may industry areas and solutions

Gartner Reviews
Gartner is one of the major IT industry analysts, Gartner classify Oracle as a leader in many industry
areas, below is reports for Gartner Magic Quadrant generated to classify industry leaders
IDC Reviews
IDC is research company in Communication and IT industry, and they provide reports for the products in
the industry and they classify Oracle as a leader in may areas, below some samples for the MarketScape
reports provided by IDC.

1.5 Generic Strategies:
Oracle has a multiple strategy based on the line of business and the products set, Oracle is prospector
and pioneer in some line of business like (Database, ERP, CRM and Cloud Infrastructure), however in
some other line of business Oracle can be categorized as Analyzer in some areas like (Integration and
Hardware Solutions )
1.5.1 Prospectors Strategy
Oracle focus heavily on Research and Development to be able to develop new solutions and services
that allow Oracle to be a market leader in technology industry Oracle invests about 15% of its annual
revenues in R&D, Oracle also owns more than 18,000 patents in technology industry.
In some line of business like (Database, ERP, CRM and Cloud Infrastructure), Oracle invest heavily to be
preserve it’s position as a market leader or among the top players in these areas.
Oracle's R&D spending between FY2005 and FY2020 (in million U.S. dollars)*
Also Oracle is among the Top-10 companies in technology industry in R&D and among the Top-5 in
software industry

Section2: External Environment Analysis
2.1 Oracle PESTEL Analysis:
PESTEL analysis is required by the companies to be able to understand the external environment and to
be able to direct the investments in the correct direction to maximize the ROI in the company.
Political Analysis Economic Analysis
• Impact due to change in taxation policies
in the regions of operation
• Advantages and Disadvantage due to
differences in trade regulations in
different countries
• Lobbying of Government and Political
Contributions
• Governments align toward analytics to
increase efficiency
• Volatility of exchange rate increasing risk
• GDP Growth and economic Conditions
• Impact of COVID-19 pandemic on
economy and business operations
• Impact due to US-China trade tension
Social Analysis Technological Analysis
• Increase focus on ethical technology
• Social inclusion for minorities
• Social responsibilities
• Emerging technologies forces to
innovation and transformation
• Leveraging disruptive technologies to
drive innovations
Environmental Analysis Legal Analysis
• Developing solutions for sustainable
environment
• Adopting Environment standards in
internal operations
• Strong implementation of responsible
sourcing standard
• Antitrust and Competition laws
• Global Anti-Corruption and Bribery Laws
• Intellectual Property
• Increase in cybersecurity threats giving
rise stringent regulations
• Intensifying development of cyber laws
related to data sharing and data security
and data privacy
• Constantly AI laws evolving across the
globe

Political Analysis:
Oracle Focus on being a “Green Company” with and Environment Friendly business operations
Lobbies and programs
Impact due to change in taxation policies in the regions of operation
Oracle operates in more than 55 countries across the 6 continents, Oracle different entities must apply
the diffident regulations for every country and the laws and regulations for the United States of America
where HQ is based.
In the recent action taken by Oracle which it has changed its corporate headquarters to Austin, Texas,
many analysts said that this action is taken because Texas has an more simple taxes regulations and
lower taxes and no personal income taxes.
Also due to the new regulations and laws imposed by the EU, Oracle moved its EMEA HQ to Ireland
instead of England.
Advantages and Disadvantage due to differences in trade regulations in different countries
Working in international business environment requires companies to apply strict laws and regulations,
Oracle focuses on this area confirm the compliance with laws and regulations, Oracle have a multiple
program for this compliance regulations.
Oracle has a team assigned for Oracle Global Trade Compliance (GTC) is responsible for import and
export oversight, guidance, and enforcement to enable worldwide trade compliant business processes
across Oracle, in order to uphold and protect Oracle's global trade privileges and ensure the success of
Oracle's business. GTC manages Oracle's global trade compliance portfolio, and is responsible for global
trade regulatory interpretation and coordination of policy advocacy, Global Brand Protection, Hardware
Compliance Strategy, and Market Access programs. Further, GTC reviews and resolves global trade
compliance matters; serves as the clearinghouse for all global trade compliance information, including
product classification, and is empowered to take actions necessary to ensure Oracle remains compliant
with U.S. and applicable local Customs, import, and export laws, regulations, and statutes.
Product and License Exception Information:
Oracle products classified as 5A002 or 5D002, qualify for shipment under ENC Guidelines. Oracle
products listed on the Export Control Classification Number (ECCN) Product Matrix are classified as
Unrestricted or Restricted, as applicable. Local country (non-US) export licensing requirements vary. A
formal export license issued by the local ‘ship-from’ country may be required to export ECCN 5A002 or
5D002. Certain countries may also have import licensing requirements.
Prohibited End Users
In accordance with United States’ and applicable export control and economic sanctions laws and
regulations, all Oracle products and services* are prohibited for export/reexport/transfer (includes in-
country transfer) to or access by (includes cloud access) the following:

Any company or national of Cuba, Iran, North Korea, Sudan, Syria, and the Crimea region. Export
licensing of commodities or services intended for these countries is presumed denied;
Re-export to these countries is prohibited; you may not proceed with any proposed transaction if you
“know or have reason to know” it would be contrary to U.S. or applicable laws or regulations;
Entities listed on any U.S. Government Denied Party/Person List. See BIS’s The Denied Persons List,
the Office of Foreign Assets Control's Economic and Trade sanctions list (OFAC), and the Directorate of
Defense Trade Controls (DDTC). Any customer you know or have reason to know, who is involved in the
design, development, manufacture or production of nuclear technology, or nuclear, biological or
chemical “weapons of mass destruction.”
Cloud access and/or download from these countries or regions is considered an export under U.S.
export and applicable economic sanctions laws and regulations and is therefore prohibited.
Lobbying of Government and Political Contributions
Our interactions with the government are generally governed by lobbying laws and regulations.
Lobbying is any activity that attempts to influence laws, regulations, policies, and rules, but in certain
jurisdictions can also cover sales and business development activity. These laws can apply to elected
officials, as well as appointed officials and government employees. The company may have an obligation
to register and/or report the company’s lobbying activities under applicable law, including activities by
employees and outside consultants or advisors on government relations.
Oracle takes seriously our obligation to comply with the laws relating to political contributions.. All
political contributions made by Oracle, including attendance, participation, and/or sponsorship of
political candidates, parties, campaigns, and related events must be approved in advance by Oracle’s
Government Affairs and the Oracle Legal Department. In addition, in many instances’ corporations are
prohibited from giving to political campaigns. Some campaign laws interpret use of corporate resources
(such as equipment, email, stationery, or personnel) as corporate donations.
Economical Analysis:
GDP Growth and economic Conditions
The GDP for the world economy is expected to shrink by 4.9% as per IMF, the US and Euro Zone are
expected to shrink by 8% and 10 respectively, the mentioned areas are responsible about 70% of
revenues

The shrinking GDP will reflect aggressively on the economy and will push the governments and
households to minimize the spending and to focus on the spending on OPEX not CAPEX.
Despite IT spending's downturn, spending on remote working apps and platforms is projected to reach
double-digit growth rates this year. Gartner's latest forecasts reflect how IT spending for remote
working is a growth catalyst for public cloud services, predicted to grow 19% this year. Cloud-based
telephony and messaging and cloud-based conferencing are also predicted to grow 8.9% and 24.3%
respectively.
Oracle will focus on selling Cloud applications and remote working software, to be able to mitigate the
expected downturn in the traditional IT spending.
Impact of COVID-19 pandemic on economy and business operations
Gartner predicts IT spending will decline by 8% this year dropping from $3.7T in 2019 to $3.4T this year.
Worldwide spending on IT infrastructure, including public and private cloud increased 2.2% in Q1, 2020
while spending traditional non-cloud infrastructure plunged 16.3% year-over-year according to IDC.
54% of CFOs plan to make remote work a permanent option according to a recent PwC U.S. CFO Pulse
Survey and are investing in technologies to enable that today.
IT budgets across ten industry sectors are predicted to see a 5% to 11% reduction this year. Industries
the hardest hit by the pandemic are predicted to see the greatest losses to their IT budgets in 2020.
These include retailers who will see up to a 15% drop in IT budgets this year. Energy/Utilities (-5%),
Public Sector (-6%) and Manufacturing (-7%) are expected to see the least. The following table provides
insights into the ten sectors' IT operational budget reductions in 2020.
13% of organizations are increasing their IT budgets in response to the pandemic. The Avasant research
team interviewed a government agency that had to increase its budget to update a legacy

unemployment insurance system so it could handle a larger number of applicants. The research team
also learned of organizations fast-tracking ERP replacements so they could gain new analytics and
reporting insights. Consistent with Gartner's prediction of remote working being a growth catalyst for
cloud-based IT spending during the pandemic the Avasant research team found the same.
57% of organizations are leaving their IT budgets unchanged and 30% are decreasing them. The
pandemic's immediate impact on revenues has made every organization re-evaluate IT priorities and de-
prioritize projects that have a borderline impact on revenue and margin growth or cost reduction. The
largest IT budget reductions are happening in entertainment, tourism, hospitality and retailing which are
all businesses heavily dependent on personal interaction.
61% of organizations are leaving capital IT budgets unchanged and 28% are reducing them. Reflecting
the steady growth of operational budgets since the last recession, organizations have cut back on capital
budgeting over the last decade in favor of cloud services. The Avasant research team observes there is
simply not as much IT capital spending to cut in the typical IT organization as there was five or seven
years ago. Gartner predicts that 2023, 91% of new CRM sales software spend will be for cloud-based
deployments, up from 81% in 2018.
Oracle will focus on selling Cloud applications and remote working software, to be able to mitigate the
expected downturn in the traditional IT spending.
Impact due to US-China trade tension:
For US tech companies, it all began promisingly enough. But what started as a narrowly targeted trade
complaint has morphed into what looks like a turning point for America’s global tech leaders,
contributing to severe market whiplash.
The fight with China has had three broad effects, according to Chuck Robbins, the chief executive officer
of networking equipment maker Cisco Systems, and the White House has no offsetting positives yet to
show for this pain. Surprisingly, perhaps, companies such as have managed to resist most of the
headwinds so far — but that may be changing. One effect concerns sales to customers in China. US
policy was meant to open the market more to American tech companies, but if anything, it has had the
opposite effect.
To overcome this effect Oracle invested in building datacenters in China to allow the companies to use
the application and technologies using datacenters in homeland China.
Social Analysis:
Increase focus on ethical technology
Conflict Minerals
Tin, tantalum, tungsten, and gold have been designated as “conflict minerals” by the U.S. Securities and
Exchange Commission (SEC). These minerals are used in a variety of products, including electronic and
computer parts, vehicles, airplanes, jewelry, X-ray film and metal finishes. They have been designated as

conflict minerals because the mining proceeds may be used to fund armed groups in the Democratic
Republic of Congo or certain adjoining countries.
On August 22, 2012, the SEC adopted rules implementing conflict minerals-related disclosure provisions
under Section 1502 of the Dodd-Frank Wall Street Reform and Consumer Protection Act. Publicly traded
companies subject to these rules, including Oracle, must report annually to the SEC on their efforts to
determine the use or potential use of conflict minerals in their supply chains. Oracle’s most recent
Conflict Minerals Report is available at https://www.oracle.com/corporate/ citizenship While the global
supply chain for these minerals is complex and multi-tiered, and tracing these minerals raises potential
challenges, Oracle is committed to ethical business conduct and the responsible sourcing of materials
through our global hardware supply chain. Oracle conducts a reasonable country of origin inquiry of our
direct hardware supply chain using a prioritized, risk based approach, and collects and evaluates supplier
responses using the Responsible Minerals Initiative’s Conflict Minerals Reporting Template.
Additionally, Oracle is engaged with the Responsible Business Alliance as part of a wider industry
collaboration to address the issue of conflict minerals.
Environmental Performance:
With the co-operation of our employees, customers, contractors, and suppliers, we are committed to
environmental management and we incorporate environmental considerations into our procurement
processes.
Oracle gathers and evaluates key suppliers’ environmental performance data to make informed choices,
assess options with lower environmental impact and review the environmentally preferable offerings of
existing suppliers.

Social inclusion for minorities
Oracle affirms the principle of equal employment opportunity without regard to any protected
characteristic, including but not limited to:
• Race
• Religious creed
• National origin
• Color
• Sex or gender
• Gender identity or expression
• Age
• Mental or physical disability or medical condition
• Pregnancy
• Marital status
• National origin/ancestry
• Genetic information
• Political affiliation
• Military and protected veteran status
• Sexual orientation
• Any other characteristic protected under federal or state law or
• local ordinance
Oracle bases personnel actions strictly on individual ability, performance, experience, and company
need. We avoid actions influenced by personal relationships and discriminatory practices of any kind.

Our goal is to compensate personnel—with wages, salaries, and other benefits—in relation to their
responsibilities, performance, and experience. Oracle is also committed to adhering to wage, hour, and
minimum-age guidelines provided by applicable laws. We strive to structure the content of jobs so that
work provides personal satisfaction and challenge.
Social Responsibilities
Oracle recognizes the important responsibility and respect universally recognized human rights
throughout our operations and in the products and services we offer. As a global company, we address
important human rights issues every day, including online privacy, human trafficking, conflict minerals
and labor rights, freedom of expression, and data privacy.
Oracle support and respect the protection of human rights and ensure that our business partners and
suppliers do the same. We avoid involvement in human rights violations that could arise through our
businesses actions. We require that child labor, prison or forced labor, and physical punishment are
never permitted in any operation of Oracle. We similarly require that our business partners or suppliers
not engage in such practices. We respect your right to organize in labor unions and collectively bargain
in accordance with local laws and established practices.
Oracle is committed to using our technology and resources to advance education in innovative ways,
promote diversity, enrich the life of communities, and protect the environment. In balancing the needs
of our business with the needs of the environment, Oracle‘s policy is to maintain our facilities and run
our business operations in a manner that minimizes any adverse impact on the environment. As an
example, we seek to reduce, reuse, and recycle as many resources as we can.

Technological Analysis
Emerging technologies forces to innovation and transformation
Technology solutions built around artificial intelligence (AI) and 5G offer the most immediate
opportunities for tech firms to generate new business and revenue.
Artificial Intelligence: claimed the top spot on the list. Artificial intelligence refers to programmed
algorithms that automatically parse and apply knowledge. It's the largest force in emerging technology,
and includes security and sales applications for businesses.
5G: offers improvements over 4G, such as low latency, intelligent power consumption and high device
density. 5G will make augmented reality, smart cities and connected vehicles possible.
Internet of Things: combines information from connected devices and allows for analytics of systems.
These platforms, devices and datasets provide additional insights and efficiencies for the enterprise.
Cloud Solutions: or Function as a Service (FaaS), allows companies to build applications that scale in real
time so that they can respond to demand that can change instantly depending on orders of magnitude.
FaaS offers a consumption-based platform so that developers can quickly and cost effectively deploy
applications.
Biometrics: Security will be improved by biometics by allowing people and devices to authenticate and
move seamlessly through the world.
Augmented Reality/Virtual Reality: AR and VR transform how people engage with machines, data and
each other. The enterprise is using mixed reality, AI and sensor technologies to enhance execution
flexibility, operational efficiency and individual productivity.
Blockchain: There's an ever-increasing need to be able to secure and manage transactions across the
internet, and blockchain is the answer. Blockchain manages data and supply chain challenges.
Robotics: are shifting from industrial use to service delivery and are impacting home and businesses,
both physically and virtually.
Natural Language Processing: is a field of AI that enables computers to analyze and understand human
language. Speech-to-text converts human language into a programming language. Text-to-speech
converts a computer operation to an audible response.

Quantum Computing: ability to process and analyze big data will be impacted by quantum computing. It
is the key to leveraging machine learning and the power of AI.
Oracle products and solutions covers most of the technology areas like (Artificial Intelligence, 5G,
Internet of things, Cloud Solutions and Blockchain), however Oracle solutions doesn’t cover the
mentioned areas (Biometric, Augmented Reality, Robotics and NLP and Quantum Computing)
Leveraging disruptive technologies to drive innovations
Oracle Corporation is a global provider of enterprise cloud computing and is empowering businesses
of all sizes on their journey of digital transformation. Oracle Cloud provides leading-edge capabilities in
Software as a Service (SaaS), Platform as a Service (PaaS), Infrastructure as a Service (IaaS), and Data as a
Service (DaaS). Oracle's security solutions enable organizations to implement and manage consistent
security policies across the hybrid data center. Oracle security cloud services make leading security
technologies available everywhere to organizations large and small. Oracle Cloud Platform enables
developers, IT professionals, and business leaders to develop, extend, connect, and secure cloud
applications, share data, and gain insights across applications and devices. Oracle's application suites,
platforms, and infrastructure leverage both the latest technologies and emerging ones, including
artificial intelligence (AI), machine learning, blockchain, and Internet of Things (IoT).
The 2020 fiscal year marked a slight increase in Oracle Corporation’s research and development
spending, the yearly total climbing to 6.07 billion U.S. dollars from the 6.03 figure recorded in 2019.
Following years of dramatically expanding R&D budgets, the company seems to have slowed R&D
budget expansion and stabilized the figure at around six billion.
Oracle's research & development spending between FY2005 and FY2020 (in million U.S. dollars)*

Environmental Analysis:
Oracle Focus on being a “Green Company” with and Environment Friendly business operations, Oracle
designed a special program
Also currently so many Activist Investors are focusing on investing in companies with Environmental
Strategies, and also Green Investors who focus on investing on these companies
Developing solutions for sustainable environment
Oracle focused on developing number of solution and programs for environment sustainability, Closed-
Loop recycling is a recycling process where a recyclable item that has reached its end life is recycled into
new product. This is commonly used my manufacturers of recyclable products and can be as simple
Many models replace a linear consumption process (in which products are made, used, and then
disposed of) with a closed loop, in which used products are recycled. This shift reduces overall resource
costs
A Closed-Loop program is based on three principles: collection, manufacturing and Supplying.
Collection: is diverting and gathering materials that are recyclable so that they may be processed.

Manufacturing: the collected, recyclable materials are processed and then used in the production of a
product.
Supplying: Finally the newly made product is then sold to a third party before being reused and restart
the process again
Oracle's Take Back Programs
As a responsible producer of hardware products, Oracle offers various take back programs that allow
our customers and suppliers to return excess used products or materials. These programs help protect
the environment and provide valuable services to our customers. All returns are managed via the Oracle
Returns Management System (ORMS). Registration and Process instructions are included under the Take
Back program descriptions below.
Oracle programs follow industry best practices and are compliant with local law, Oracle directly audits
its recyclers to better ensure compliance, and actively drives continuous improvement since laws
continue to change, Oracle tracks and reports our reuse, recycling, and landfill results, as well as the
details of our recycling program
Adopting Environment standards in internal operations
Oracle as a global company is committed to use technologies to meet environmental challenges, with a
global operations over 25 million square feet, the responsibility of sustainable us of natural resources is
very important, Oracle is always looking for a new ways to maximize energy efficiency and reduce its
green house gas emissions and minimize water consumption and waste generation, Oracle adopted set
of processes and programs to apply these requirements .

Strong implementation of responsible sourcing standard
Oracle is focused on responsible sourcing as part of it’s initiatives and programs, customers will
ultimately hold you accountable for what you deliver. So if your products contain parts manufactured
unsustainably that have come from an external supplier, it’s going to be you who faces the backlash.
Qualifying the right sourcing partners is a critical piece of the sustainability puzzle—and it all revolves
around the enforcement of the same high sustainability standards that you hold your own business to.
Announcement for ISO 14001 for Environmental Protection

Legal Analysis:
Antitrust and Competition laws
Typically, the countries in which Oracle operates have laws and regulations that prohibit unlawful
restraint of trade, usually referred to as antitrust or competition laws. These laws are designed to
protect consumers and markets against unfair business practices and to promote and protect healthy
competition. Oracle commits to observing applicable antitrust and competition laws around the world.
Antitrust or competition laws vary from country to country, but generally, these laws prohibit
agreements or actions that reduce competition without benefiting consumers. Among those activities
generally found to violate antitrust or competition laws are agreements or understandings among
competitors that:
• Fix or control prices, including a reseller’s prices to its customers
• Structure or orchestrate bids to direct a contract to a certain competitor or reseller or anti-
competitively
• influence pricing (bid rigging)
• Boycott suppliers or customers
• Divide or allocate markets or customers
• Limit the production or sale of products or product lines for anti-competitive purposes
Oracle also strives to ensure that our global practices comply with United States antitrust laws. In
addition to local laws, antitrust laws of the United States apply to our international business operations
and transactions, Oracle is committed to complying with all applicable global export, import,
and economic sanctions, laws, and regulations. Compliance with global trade laws and regulations
protects Oracle’s ability to conduct international business. Failure to do so can result in disciplinary
action for the company, serious supply chain disruptions, loss of sale and service opportunities,
monetary penalties, fines and imprisonment for individual employees and their management chain, and
the potential revocation of our trade privileges. You are responsible for understanding how trade
compliance laws and regulations apply to your job, and strict adherence to these laws is required.
including imports to and exports from the United States.
US trade compliance laws and regulations govern all exports and imports of commodities and technical
data into and from the United States, which include
• Physical items (hardware, laptops, software media, and the like)
• Electronic or physical distribution of software and source code
• Written, electronic, or oral disclosure of technical data to a visitor outside of the United States
or H1-B Visa worker whether it occurs within the US or abroad

Any oral or written disclosure of technical data to a visitor from outside of the United States must
comply with the same export control restrictions that are applicable to the physical export of such data.
Global Anti-Corruption and Bribery Laws
Oracle believes in doing business honestly and is committed to transparency in our business
practices. We have no tolerance for corruption and bribery in connection with our business. You must
comply with anti-corruption laws, such as the US Foreign Corrupt Practices Act (FCPA) and the UK
Bribery Act, in all countries in which we do business.
Oracle is also committed to ensuring that our partners comply with all applicable laws, including anti-
bribery and anti-corruption laws. To support this objective, Oracle conducts enhanced reviews of certain
transactions in select geographies and may obtain end-user documentation and information necessary
for anti-bribery compliance purposes while fully respecting antitrust laws. Only authorized non-sales
personnel, who are obligated to protect the information from further unauthorized disclosure, may
collect and access such documents and information.
Procurement Integrity:
Oracle is committed to ethical business conduct and the responsible sourcing of materials throughout
our global supply chain. On issues ranging from factory safety to conflict minerals, we work in our own
hardware supply chain and across our industry to advance responsible practices.
Oracle’s direct hardware suppliers must also acknowledge their commitment to the EICC Supplier Code
of Conduct, which is designed to promote worker safety and fairness, environmental responsibility and
ethical business.
Oracle is committed to conducting its business operations in a manner that protects the health and
safety of its employees, visitors, contractors, and the public, while also minimizing the environmental
burden of our operations and products. Oracle’s Global Environment, Health and Safety (EHS)
Department works with all lines of business and employees around the globe to comply with applicable
EHS requirements. As an employer, Oracle has responsibilities and obligations in preventing workplace
accidents and injuries and promoting safe and healthy workplaces. Immediately report any instances of
noncompliance with environmental laws and regulations to your local facilities manager, your regional
Compliance and Ethics Officer or, where permitted by law.
Oracle and its partners provide customers around the world with industry-leading solutions and
services. These standards can only be met with our partners’ cooperation. Oracle expects its partners to
conduct business fairly and ethically, to comply with anti-corruption laws around the world, to
cooperate with Oracle’s requests for information, and to avoid engaging in any activity that involves
even the appearance of impropriety. We require our partners to adhere to the standards of the Oracle
Partner Code of Ethics and Business Conduct. We also expect our partners to comply with all applicable
laws and regulations. Partners are encouraged to report concerns to the Integrity Helpline.
We maintain open and frank business dealings with our suppliers and strive to develop mutually
advantageous relationships. Oracle expects its suppliers to conduct business fairly and ethically, to
comply with the anti-corruption laws around the world, to cooperate with Oracle’s requests for

information, and to avoid engaging in any activity that involves even the appearance of impropriety. We
require our suppliers to comply with the Oracle Supplier Code of Ethics and Business Conduct. We also
expect our suppliers to comply with all applicable laws and regulations and to ensure that all goods and
services provided by them conform to all applicable legal standards. Suppliers are encouraged to report
concerns or issues to the Integrity Helpline.
Oracle is committed to maintaining an internal investigations process focused on accuracy, precision,
fairness, and respect for all parties involved. Your regional Compliance and Ethics Officer is responsible
for addressing business conduct and ethical concerns, including directing the investigation of allegations
of misconduct. Investigations are conducted in compliance with applicable law and Oracle policies and in
such a manner that all parties receive ethical and fair treatment.
Oracle complies with applicable laws in conducting investigations. To the extent permitted by applicable
law, and when appropriate, investigation methods may include interviews with the parties and
witnesses, review of relevant financial, electronic, and other records, reviews of publicly available
information, and monitoring and/or analysis of computers, systems, offices, and other resources.
Intellectual Property
Besides our people, Oracle‘s most important assets are its intellectual property rights, which include
• Copyrights
• Patents
• Trademarks
• Trade secrets
We are each responsible for protecting Oracle‘s intellectual property rights by complying with Oracle‘s
policies and procedures for their protection. Maintaining the confidentiality of Oracle‘s trade secrets
and proprietary information is an important element of such protection. This obligation continues even
after you leave Oracle.
We also respect the intellectual property of others. Oracle will provide any software necessary to
perform your functions adequately under appropriate licensing agreements with vendors. It is against
Oracle policy to use, copy, display, or distribute third-party copyrighted software, documentation, or
other materials without permission or approval from Oracle’s Legal Department.
Increase in cybersecurity threats giving rise stringent regulations
Oracle operates in many countries across the globe and operates many Data Centers around the world,
Data Security regulation become a critical aspect for any company handles customer’s data, the
regulations from U.S and EU, China, etc..
Oracle has implemented and will maintain technical and organizational measures designed to prevent
accidental or unlawful destruction, loss, alteration, unauthorized disclosure of, or access to Services
Personal Information. These measures, which are generally aligned with the ISO/IEC 27001:2013
standard, govern all areas of security applicable to the Services, including physical access, system access,
data access, transmission, input, security oversight, and enforcement.

Oracle employees are required to maintain the confidentiality of personal information. Employees'
obligations include written confidentiality agreements, regular training on information protection, and
compliance with company policies concerning protection of confidential information.
See additional details regarding the specific security measures that apply to the Services are set out in
the security practices for these Services, including regarding data retention and deletion, available for
review.
Incident Management and data breach notification.
Oracle promptly evaluates and responds to incidents that create suspicion of or indicate unauthorized
access to or handling of Services Personal Information.
If Oracle becomes aware and determines that an incident involving Services Personal Information
qualifies as a breach of security leading to the misappropriation or accidental or unlawful destruction,
loss, alteration, unauthorized disclosure of, or access to, Services Personal Information transmitted,
stored or otherwise processed on Oracle systems that compromises the security, confidentiality or
integrity of such Services Personal Information, Oracle will report such breach to You without undue
delay.
As information regarding the breach is collected or otherwise reasonably becomes available to Oracle
and to the extent permitted by law, Oracle will provide You with additional relevant information
concerning the breach reasonably known or available to Oracle.
2.2 Oracle Industry Environment Analysis
(Porter’s 5 forces):
2.2.1Threat of New Entrants:
Oracle has established itself into the firm it is by constantly evolving, innovating and acquiring
companies over the last 3 decades. New entrants posing significant threat to Oracle is highly unlikely
because of the new entrant barriers as mentioned below
• Initial starting cost to compete with a company like Oracle must be in billions.
• It would require tremendous amount of effort and manpower to build a comprehensive
integrated product that meets industry standards.
• To compete with industry giants like Oracle, new entrants will have to significantly spend on
sales and advertisement which could range in billions of dollars.
• Patents or copyrights could hinder new entrants from effectively utilizing the technological
advancements.

2.2.2Threat of Industry Rivals
Oracle has to continually improve products and acquire new companies in order to even maintain their
market share. Companies like IBM and SAP are making improvements as well in the hope to steal
market share. SAP is a threat when it comes to enterprise software. SAP entered this market early and
became the name synonymous with ERP. Oracle's main industry rivals have the same financial ability to
invest heavily in technology and advertising. This makes it more difficult for those rivals to steal market
share, but Oracle must always be aware of their moves. They also must be proactive and continue to
make improvements for their customers.
• Although Oracle database is the number 1 product in it’s category of products, industry giants
like IBM and others are continuously innovating to overtake Oracle in this sector.
• SAP AG currently leads the market in the ERP suite of products and holds an advantage in the
domain due to its early entry. SAP AG will continue to pose a threat to Oracle’s revenues in the
application market.
• In the hardware sector, established companies like HP and IBM already have a strong hold and
will continue to stand in the way of Oracle’s growth.
• Since most of Oracle’s competitors are well established companies, all of them have the ability
to significantly invest in sales and advertising of their product.
2.2.3 Threat of Substitutes Product or Services
The threat of a company switching from Oracle to a competitor is fairly low unless they are extremely
dissatisfied. This is because switching to a new company has a huge cost. Not only is the purchase price
of products expensive, but implementation time is very costly. A three year total cost of ownership for
Oracle is 48% lower than SAP's. Also only 81 man hours are required to implement Oracle as opposed to
SAP which requires 372.
• In a fairly good economy, threat of substitutes is low as there is a huge switch over cost
involved.
• When the economy is bad, threat of substitutes is high as consumers have the tendency to cut
cost and defer projects and operate with existing or legacy systems.
• Consumers might also shy away from high-priced Oracle products if long-term benefits are not
part of consumer’s objective.
• The costs associated with similar industry products are not significantly different from Oracle’s
product costs and hence there is very little scope for substitution in terms of product pricing.
2.2.4 Bargaining Power of Suppliers
Supplier power is pretty low in the sense that Oracle does not have a threat of forward integration.
Oracle makes most of its software, but if they were forced to they could manufacture finished products.
They have the money and the resources needed to fairly easily acquire manufacturing plants to produce
the hardware components. I could not find a single supplier to Oracle that was bigger than them. Their

suppliers also do not control a scarce resource because components of databases and other hardware
are commodities. Both of these things limit the threat of suppliers.
• When the technology surrounding Oracle products were fairly new there was more demand for
resources and hence suppliers had a higher power. But with time, the supply of resources has
exceeded the demand and hence the supplier power has considerably reduced.
• Cost of outsourcing to develop products has significantly enhanced the abilities of software
companies to negotiate in terms of setting up their operations and has hence reduced the
supplier power.
2.2.5 Bargaining Power of Buyers
Oracle mainly serves large companies which means that buyers are fairly prestigious because their
purchases represent a significant portion of sales. Below is a picture which has some of Oracle's
clientele. Oracle's products provide significant value to these companies which limits the companies
bargaining power. Most products that customers buy are customized to suit their needs. This means
that it is difficult to compare prices between companies similar to Oracle. The products and services that
Oracle provides are also usually very expensive. All of these things make the buyer group less powerful.
• Since Oracle targets fairly large sized companies, pricing is not the key factor for consumers
while making a purchase and hence the buyer power is low.
• Buyers do not have much of negotiating power. Products and services catered by Oracle are
niche and there are very few established competitors. Hence there is not much of a gap in the
pricing of competitor products which significantly reduces the buyer power.
• Acquisitions reduce competition and consolidates IT company market share thereby reducing
buyer power.
2.3 Value Discipline Triad:
In the Value Discipline Triad has a good positioning in some areas and it needs improvement in some
other areas
Product Leadership: Oracle is well known for it’s excellent products which is suitable for mission critical
business like (Defense, Banking, Insurance and Telecommunications)
Operational Excellence: Oracle has a good operations and business process however there is an area of
improvements operations part which can make the company more agile and responsive to customer
needs and market needs.
Customer Intimacy: Oracle has a long-standing relationship with customer which go back to more than
25 years in many cases, however some customer complains about the long process and delay in some
business areas, this could be an area of improvement which will lead to more customer intimacy and
loyalty.

BCG Matrix For Oracle:
Stars Question Mark
• Database
• Fusion ERP
• NetSuite ERP
• Sales and Customer Relationship
Management Solution
• Hyperion EPM Solution
• Fusion HCM Solution
• Taleo for Talent Management
• Primavera Project Management
• Big Data Management Solution
• Artificial Intelligence Solution
• Data Analytics and Business Intelligence
Cash Cows Dogs
• Micros Hospitality Solutions
• Opower Utility Solution
• JD-Edwards ERP Solution
• PeopleSoft ERP and Campus
Management
• Integration Suite
• Data Security Solutions
Revenue % of
Corporate
Revenue
Largest
Competitor
Market
share
Firm
Market
Share
Relative
Market
Share
Market
Growth
Rate
Database $ 9.2 B 23% 24% 43% 8%
Fusion ERP $ 4.2 B 10.5% 22% 12% 28%
NetSuite ERP $ 3.6 B 9% 22% 12% 28%
CRM $ 2.8 B 7% 18% 5.2% 36%
Primavera $ 2.8 B 7% 12% 65% 10%
IaaS & PaaS $ 1.6 B 4% 45% 6% 33%

Industry Matrix for Oracle:
Industry Matrix allow us to understand our position against industry factors and our competition, in this
comparison we worked against our main competitors in different line of business.
Industry
Success factors
Weight
Oracle SAP Microsoft Amazon
(AWS)
Salesforce IBM
Rate
Weighted
Score
Rate
Weighted
Score
Rate
Weighted
Score
Rate
Weighted
Score
Rate
Weighted
Score
Rate
Weighted
Score
Product
Differentiation
0.2 4 0.8 4 0.8 4 0.8 4 0.8 4 0.8 4 0.8
Brand Loyalty 0.15 3 0.45 3 0.45 4 0.6 4 0.6 4 0.6 3 0.45
Distribution
Channels
0.15 3 0.45 3 0.45 3 0.45 3 0.45 3 0.45 3 0.45
Innovation and
New
Technologies
0.2 4 0.8 4 0.8 4 0.8 4 0.8 4 0.8 4 0.8
Interoperability 0.1 4 0.4 2 0.2 4 0.4 3 0.4 3 0.4 2 0.2
Support for
Open Source
0.1 2 0.2 1 0.1 3 0.3 3 0.3 3 0.3 1 0.1
Customer
Support and
Services
0.1 4 0.4 4 0.4 4 0.4 4 0.4 4 0.4 4 0.4
Total 1 - 3.5 - 3.2 - 3.75 - 3.65 - 3.65 - 3.2
Based on the industry matrix oracle considered in the middle between compotators and there and area
of improvement in some industry aspects.

Section3: Internal Environment Analysis
Oracle Value Chain Analysis:
The Value Chain Analysis can help Oracle identify those activities and develop those areas to get a strong
competitive edge over rivals. Porter’s generic strategies for achieving the competitive advantage and
value chain model can be used together to set strong competitive advantage basis.
Broadly, the competitive advantage sources can be grouped into two types- cost and differentiation.
Oracle can obtain a competitive advantage from one or both sources, depending on the depth and
breadth of its Value Chain Analysis.
Oracle can provide another successful Value Chain Analysis Example where organization outpaced
competitors by re-configuring value chain activities to ensure quick delivery.
The Value Chain Analysis can also be used by Oracle to improve its human resource practices.
Criteria
Primary Activities
Outbound Logistics 45% of Oracle revenues come through Software resellers and
distributors
Outbound Logistics Timely product delivery, Oracle deliver the new software and products
and services on the announced dates with no delay
Outbound Logistics Flexible delivery capabilities, Oracle delivers the solutions through
multiple channels (Oracle Website, Resellers and Distributors)
Outbound Logistics Effective order processing procedure, Oracle has a strong order
processing team that review the orders one by one and have a due
diligence process specially for Government and Public sector
customers
Inbound Logistics Only 5% of Oracle sales revenues (Hardware Sales) depends on
supplier to manufacture the required HW
Inbound Logistics Improved relationships with suppliers and customers, Oracle focuses
on developing the relationship with the suppliers by providing them
with continuous improvement for the supplying process and learning.
Operations Oracle invests heavily in R&D for the solution
• Improved product appearance
• Quick response to unique specifications
• Oracle provide upgrades for cloud solutions every 3 months
with new features and functionalities
Operations Wide product range
• General Business Solutions (ERP, SCM and HCM)
• Technology Solutions (Database, Integration and Hardware)
• Industry Specific Solutions (Utilities, Retails, etc.…)

Operations Quality Assurance and Quality Control for the products
• Prevention of product pre-mature failure
• Release of monthly bathes for bug fixing
Operations Effective coordination among product, research and marketing
departments.
Operations Oracle’s regional center in Ireland supports the European, Middle
Eastern, and African region; the center in Singapore supports the
Japan, India, Greater China, and Asia-Pacific region; and the centers in
Fargo, North Dakota, Fort Lauderdale, Florida, Puerto Rico, Redmond,
Washington, and Reno, Nevada support Latin America and North
America
Operations Oracle aims to support its customers in terms of online security.
Operations The company has an online security center on its website and provides
information about download security essentials. Moreover, also offers
an online Malicious Software Removal Tool to customers as a part of
its customer service program.
Operations The global technology company also has an online disability answer
desk to support customers with disabilities.
Oracle has a free toll customer service phone number that anyone can
call 24/7 to address their support issues and software issues.
Marketing & Sales Brand marketing message is closely associated with the values of
effectiveness, efficiency
Marketing & Sales Oracle uses licensing method to sell its products and services that
suites customer needs
• Enterprise Agreement Licensing
• Oracle Product and Services Agreement Licensing
• Select Plus Licensing
• Open Licensing
Marketing & Sales Sales and marketing expenses increased USD 0.5 billion or 13% in 2018
compared to the previous year
Marketing & Sales Oracle has Inbound and Outbound marketing teams to maximize the
reach to customers
Marketing & Sales Brand awareness, reputation and image development due to extensive
and effective advertising.
Marketing & Sales Wider sales force coverage, Oracle has a dedicated sales team for
every products and industry to insure delivering the maximum value to
the customers
Services Oracle Support services can be categorized in Standard and Premium
with a superior service quality
Services Oracle Advanced support services which includes on-site support
services
Services Oracle Cloud Subscription service which includes cloud services and
software
Services Oracle Business Consultation Services which includes the
implementation services for customer business requirements

Services Oracle provides high quality technical assistance with a reliable and
quick repair/maintenance service
Support Activities
Financials 70% of Revenues from software Sales (High Profit Margin)
Financials 25% of Revenues from Services Sales (Medium Profit Margin)
Financials 5% of Revenues from Hardware Sales (Low Profit Margin)
Financials Oracle has cash on hand $37.2B (#8 World Wide)
Financials Slow but steady revenue growth 1%-to-2% per year
Financials
Human Resources Oracle Choose best employees through a tough recruitment process
Human Resources Oracle Provide benefits for employees inform of medical, paid time off
and stock grants and relocation allowances
Human Resources Oracle focuses on Continuous learning by providing employee grants
for post graduates studies
Human Resources Oracle also provide the employee with the choose to work from home,
yet these benefits can attract highly skilled workers
Human Resources Attractive rewards to encourage creativity and maximize productivity
Human Resources Personnel training for effective interaction and superior customer
service
Human Resources Oracle provides one of the best environments for working in the world
based on many reviewer and awards received.
Technology High investments in technology development to leverage new but
unknown opportunities in. For example, the new working from home
policy, being able to quickly digitize media for direct online sales.
Technology IT infrastructure and data centers on Linux open source software thus
reducing cost of technology development
Technology Renting computing resources from other companies reduce total cost
of ownership, for example printing and scanning systems
Technology Oracle quickly deliver new product development through innovation
integration in product designing and innovative product features with
patented technology
Technology High investments in technology development to leverage new but
unknown opportunities in. For example, the new working from home
policy, being able to quickly digitize media for direct online
sales/download or for "Search inside the book" service.
Technology Using standard hardware systems to reduce cost of maintenance and
compatibility.
Technology IT infrastructure and data centers on Linux open source software thus
reducing cost of technology development.
Technology Renting computing resources from other companies reduce total cost
of ownership, for example printing and scanning systems.
Procurement Procure high quality raw material and replacement parts.
Procurement Using the ERP to keep a rich inventory to make this readily available
for customers and reduce time of delivery, specially built distribution
centers, warehouses and fulfillment centers to increase the speed of
order processing thus avoiding transaction costs of contracting out.

Oracle SWOT Analysis:
Strengths Weakness
• Strong and Stable Financial Performance
• Market leader in Database industry
• Constant innovations and new products
• Cloud Platform leveraged to transform
and unlock new business value
• One Stop Shop for Enterprise Solutions
• Widely Connected stakeholders from
various domains and regions
• Undisputable brand awareness &
presence
• Strong presence in EMEA Region
• Industrial Solutions and Vertical Solutions
• Excessively reliant on brand perception
and brand image
• Low adoption in SME
• Some modules are complex to install and
configure (Order Management, WMS,
TMS)
• Expensive product and Complex Pricing
Structure
• Low adoption for open source
technologies
• Dependancy on third party vendors for
physical data centers
Opportunities Threats
• Huge untapped market potential
especially in Asia
• Spending Transformation in IT from
CAPEX to OPEX
• Changing business scenario
• Demand for customized human
experience platform
• Strategic Partnerships with channel
distribution
• Analytics to play huge role in healthcare
• Highly Competitive technology solution
market
• Favored inorganic growth (Acquisitions
and Share repurchases)
• Oracle is a late entrant to the cloud
market
• Global economic slow down
• Foreign currency risks and regulations
• Intensifying development of cyber laws
related to data sharing and data security
and data privacy

Strengths
Oracle research and development capabilities can be highlighted as one of its main points of competitive
edge. Specifically, the company successfully operates Oracle Labs where a wide range of projects that
include Fortress, Maxine Research VM, QVM, Adaptive Optimization, Computer Architecture and
Performance Modelling (CAP), Network Computing, Scalable Synchronization, Electric VLSI Design
System and many other projects have been developed that contribute to the competitive edge of the
company.
Other points of strengths include inorganic growth strategy that has enabled the company to achieve its
current status and the robust market positioning of the brand. Moreover, the company has a strong and
charismatic leader in the personality of Larry Ellison
Weakness
One of the major weaknesses of Oracle relates to the heavy dependence of the company on the US and
Europe marketplaces. Specifically, during the fiscal year of 2009-2010 Oracle operating revenue from US
and European markets amounted to 64% of the total business revenues
In other words, the lack of Oracle presence in Asian marketplace can be considered as the weakness of
the company due to the fact that the role of Asian businesses are growing in the international business
arena, at the same time when US and European countries are faced with serious financial issues.
Moreover, heavy reliance on partnerships and alliances rather than direct market entry in terms of
engaging in international market expansion limits the level of Oracle control of international operations.
Opportunities
There is range of opportunities to be used by Oracle in order to achieve long-term growth. These
opportunities include increasing the presence of the company in Chinese and Indian markets, increasing
the market share of the company through the growth of global enterprise software market, and
generating additional solid revenue for the company in the future through increasing the level of
investment on the development of virtualization software programs.
Moreover, the company can achieve long-term growth through sophisticating its data storage services
considering dramatically increasing demand for this type of service, and also research and development
initiatives can be launched with the aim of developing innovative business applications for various types
of devices and in this way increasing the level of revenue stream of the company.
Threats
A set of specific threats have to be addressed by Oracle Corporation effectively in order to achieve
sustainable growth in the future. The major threat for the company is the emergence of new

competitors from China, India or any other evolving superpowers from the East. This is because Oracle
would find it challenging to compete with such a competitor on prices taking into account the access of
competitors to considerably cheaper resources, including human resources in China and India.

Issue Priority Matrix:
Issue Priority Matrix for SWOT
Probability Impact on Oracle Corporation
High Medium Low
Probability
of
Occurrence
High Spending Transformation
in IT from CAPEX to OPEX
Highly Competitive
technology solution
market
Favored inorganic growth
(Acquisitions and Share
repurchases)
Medium Foreign currency risks
and regulations
Oracle is a late entrant
to the cloud market
Changing business
scenario
Low Demand for customized
human experience
platform
Global economic slow
down
Issue Priority Matrix for Value Chain Analysis
Probability Impact on Oracle Corporation
High Medium Low
Probability
of
Occurrence
High *Oracle invests heavily
in R&D for the solution
*Quality Assurance and
Quality Control for the
products
* Sales and marketing
expenses increased USD
0.5 billion or 13% in
2018 compared to the
previous year
*70% of Revenues
from software Sales
(High Profit Margin)
*25% of Revenues
from Services Sales
(Medium Profit
Margin)
*5% of Revenues from
Hardware Sales (Low
Profit Margin)
*Personnel training for
effective interaction and
superior customer service
* Attractive rewards to
encourage creativity and
maximize productivity
* Oracle aims to support
its customers in terms of
online security.
Medium *Brand marketing
message is closely
associated with the
values of effectiveness,
efficiency
* Slow but steady
revenue growth 1%-to-
2% per year
* Oracle Choose best
employees through a
tough recruitment
process
encourage creativity
and maximize
productivity
* Improved relationships
with suppliers and
customers
encourage creativity and
maximize productivity

* Oracle focuses on
Continuous learning by
providing employee grants
for post graduates studies
Low *Using the ERP to keep a
rich inventory to make
this readily available for
customers and reduce
time of delivery
*Renting computing
resources from other
companies reduce
total cost of
ownership, for
example printing and
scanning systems
*45% of Oracle revenues
come through Software
resellers and distributors
*Only 5% of Oracle sales
revenues (Hardware Sales)
depends on supplier to
manufacture the required
HW

VRIO Matrix for Oracle:
Activity Value Rareness Imitable Organization
Permanent Competitive Advantage
Industry Specific solutions (Utilities, Retail
Construction, Hospitality, etc.)
√ √ √ √
Technology Specialized hardware solutions √ √ √ √
Native Cloud ERP Solution and hosting on
owned certified data centers
√ √ √ √
Strong Financial Engineering which avail cash on
hand $35.4B
√ √ √ √

Section 4: Four Corners Analysis
4.1 Strategic Factors Analysis Summary (SFAS) for Oracle:
Factors weight rate Weighted
score
Strengths
Cloud Platform leveraged to transform and unlock new
business value
0.1 5 0.5
Widely Connected stakeholders from various domains
and regions
0.1 5 0.5
Strong and Stable Financial Performance 0.08 4 0.32
Weakness
Some modules are complex to install and configure
(Order Management, WMS, TMS)
0.1 3 0.3
Expensive product and Complex Pricing Structure 0.08 3 0.24
Opportunities
Highly Competitive technology solution market 0.8 4 0.32
Favored inorganic growth (Acquisitions and Share
repurchases)
0.09 3 0.27
Global economic slow down 0.1 3 0.3
Threats
Changing business scenario 0.09 3 0.27
Spending Transformation in IT from CAPEX to OPEX 0.09 3 0.27
5.Strategic Partnerships with channel distribution 0.09 4 0.36
Total 1 3.38

4.2 Internal Strategic Factors Analysis Summary (IFAS)
Matrix for Oracle:
Factor Value Rareness
Strengths
Industry Specific solutions (Utilities, Retail Construction, Hospitality,
etc.)
0.15 5
Technology Specialized hardware solutions 0.1 4
Native Cloud ERP Solution and hosting on owned certified data
centers
0.25 5
Strong Financial Engineering which avail cash on hand $35.4B, and
capability to injection of new investments
0.2 3
Weakness
• Highly Competitive technology solution market 0.05 3
Favored inorganic growth (Acquisitions and Share repurchases) 0.02 4
Global economic slow down 0.07 3
Foreign currency risks and regulations Intensifying development of
cyber laws related to data sharing and data security and data
privacy
0.15 3
Total 1.0 3.89

4.3 External Strategic Factors Analysis Summary (EFAS) for
Oracle:
Threats Weight Rate Weighted
score
Highly Competitive technology solution market 0.09 4 0.36
Favored inorganic growth (Acquisitions and Share
repurchases)
0.1 3 0.3
Oracle is a late entrant to the cloud market 0.09 4 0.32
Global economic slow down 0.08 4 0.36
Foreign currency risks and regulations 0.07 3 0.21
Intensifying development of cyber laws related to data
sharing and data security and data privacy
0.09 4 0.36
Sub total 0.52 1.91
Opportunities Weight Rate Weighted
score
Huge untapped market potential especially in Asia 0.16 4 0.64
Spending Transformation in IT from CAPEX to
OPEX
0.08 3 0.24
Changing business scenario 0.08 3 0.24
Demand for customized human experience platform 0.08 4 0.32
Strategic Partnerships with channel distribution 0.08 5 0.4
Sub total 0.48 1.84
Total 1 3.83

4.4 Strategic Position and Actions Analysis (SPACE) for
Oracle:
SPACE Matrix
Rate Competitive advantage Rate Industry strength
-5 Large market share 3 The emergence of competitors with
the same quality and price
-4 Distribution Coverage all over
Egypt governorates
3 Competition from unbranded and
local products
-5 Strong marketing campaigns 5 High demand on our product in both
urban and rural areas.
-3 Technological problems due to
old SW & old servers
4 Large target segment in middle east (
kids & youth ).
-3 Labor Working conditions 4 New technology helps economising
the scale of production
-2 Low spent on R & D 3 High spending on consumer goods.
-2 Low exports due to product
nature
-2 Seen as unhealthy Product.
Average = -3.25 Average
=
3.67
Total X Score 0.42
Rate Environmental stability Rate Financial strength
-4 Increasing rates of interest 5 High Inventory turnover ratio
-3 Tax and regulatory structure 5 High ROE
-3 Technological problems
-5 Egyptian current population
growth combined with extensive
distribution
Average = -3.75 Average
=
5
Total Y Score 1.25

4.5 TWOS Analysis (SPACE) for Oracle:
TOWS Matrix Strengths Weaknesses
1 Strong and Stable Financial
Performance
1 Excessively reliant on
brand perception and
brand image
2 Market leader in Database
industry
2 Low adoption in SME
3 Constant innovations and
new products
3 Some modules are
complex to install and
configure (Order
Management, WMS,
TMS)
4 Cloud Platform leveraged to
transform and unlock new
business value
4 Expensive product and
Complex Pricing
Structure
5 Widely Connected
stakeholders from
5 Low adoption for open
source technologies
Opportunities SO Strategies WO Strategies
1 Huge untapped market
potential especially in Asia
Increase marketing
activities and offering
discounts to attract
consumers to spend and
increase sales volumes (O5,
S1,S5)
Penetrate the export
market will increase
Edita revenues due to
the large target
segment in Asia
.(W4,O1)
2 Spending Transformation in IT
from CAPEX to OPEX
3 Changing business scenario
4 Demand for customized human
experience platform
5 Strategic Partnerships with
channel distribution
Threats ST Strategies WT Strategies
1 Highly Competitive technology
solution market
Use a strong distribution
network to reach out to
customers and fight off
new entrants into the
market (S4, T3).
Producing healthy
products will create a
new compatitive
advantage for Edita that
will help to penetrate a
new market. (W5,T3,T4)
2 Favored inorganic growth
(Acquisitions and Share
repurchases)
3 Oracle is a late entrant to the
cloud market
4 Global economic slow down
5 Foreign currency risks and
regulations

4.6 Quantitative Strategic Planning Matrix (QSPM) for
Oracle:
Quantitative
Strategic Planning
Matrix
QSPM
We
igh
t
Increase
Marketing
Activities
Offering
Healthy
Products
Penetrate
the Export
Market
Increase
Spending on
R&D
Fight off new
entrants
Att
rac
tiv
en
ess
Total
Attrac
tivene
ss
Attr
acti
ven
ess
Total
Attra
ctive
ness
Attr
acti
ven
ess
Total
Attrac
tivene
ss
Attrac
tivene
ss
Total
Attrac
tivene
ss
Attrac
tivene
ss
Total
Attrac
tivene
ss
Strengths
1 Strong and
Stable
Financial
Performance
0.0
7
5 0.35 4 0.28 4 0.28 3 0.21 1 0.07
2 Market
leader in
Database
industry
0.0
7
3 0.21 2 0.14 3 0.21 1 0.07 1 0.07
3 Constant
innovations
and new
products
0.0
5
1 0.05 1 0.05 3 0.15 3 0.15 1 0.05
4 Cloud
Platform
leveraged to
transform
and unlock
new business
value
0.0
7
4 0.28 3 0.21 1 0.07 1 0.07 3 0.21
5 Widely
Connected
stakeholders
from
0.0
5
5 0.25 4 0.2 5 0.25 1 0.05 5 0.25
Weaknesses
1 Excessively
reliant on
brand
perception
0.0
5
1 0.05 1 0.05 3 0.15 5 0.25 1 0.05

and brand
image
2 Low adoption
in SME
0.0
4
1 0.04 1 0.04 1 0.04 2 0.08 1 0.04
3 Some
modules are
complex to
install and
configure
(Order
Management
, WMS, TMS)
0.0
5
1 0.05 1 0.05 1 0.05 5 0.25 1 0.05
4 Expensive
product and
Complex
Pricing
Structure
0.0
3
1 0.03 4 0.12 5 0.15 1 0.03 1 0.03
5 Low adoption
for open
source
technologies
0.0
3
2 0.06 5 0.15 1 0.03 2 0.06 1 0.03
Opportunities
1 Huge
untapped
market
potential
especially in
Asia
0.0
7
3 0.21 4 0.28 4 0.28 2 0.14 3 0.21
2 Spending
Transformati
on in IT from
CAPEX to
OPEX
0.0
7
3 0.21 5 0.35 3 0.21 2 0.14 3 0.21
3 Changing
business
scenario
0.0
5
2 0.1 2 0.1 1 0.05 1 0.05 1 0.05
4 Demand for
customized
human
experience
platform
0.0
5
1 0.05 1 0.05 1 0.05 5 0.25 1 0.05
5 Strategic
Partnerships
with channel
distribution
0.0
6
3 0.18 5 0.3 4 0.24 3 0.18 1 0.06

Threats
1 Highly
Competitive
technology
solution
market
0.0
5
1 0.05 1 0.05 3 0.15 1 0.05 1 0.05
2 Favored
inorganic
growth
(Acquisitions
and Share
repurchases)
0.0
5
1 0.05 1 0.05 4 0.2 1 0.05 1 0.05
3 Oracle is a
late entrant
to the cloud
market
0.0
3
2 0.06 2 0.06 4 0.12 4 0.12 3 0.09
4 Global
economic
slow down
0.0
3
3 0.09 3 0.09 4 0.12 2 0.06 3 0.09
5 Foreign
currency risks
and
regulations
0.0
3
1 1 1 5 0.15 1 0.03
Total 1 3.37 3.62 3.8 2.41 1.74

Oracle final project

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