Scott Mcnealy and Sun Microsystems
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Case Details:
Case Code : LDEN039
Case Length : 14 Pages
Period : 1984-2006
Pub Date : 2006
Teaching Note :Not Available Organization : Sun Microsystems
Industry : Information Technology Countries : USA
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Excerpts
The Golden Years
It was McNealy's dynamism and vision that were largely responsible for Sun's
rapid growth in the first two decades of the company's existence. When McNealy
first joined Sun, he was in charge of manufacturing, but later became
responsible for sales as well. This helped him develop a good understanding of
different areas of the business. After McNealy became CEO in 1984, he played an
important role in shaping Sun's vision that 'The Network is the Computer'. Sun
was committed to developing technologies that would allow computers to connect
seamlessly over a network, thus increasing their power tremendously. Networking
would allow computing to be provided like a utility, just like electricity and
telecommunications...
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The Decline
The beginning of the new millennium turned out to be inauspicious for the US
economy. The collapse of several dotcom and telecom companies combined with
the September 11 terrorist attacks on the US sent the economy into a
decline, and one of the worst affected by these adversities was the IT
industry...
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Conclusion
According to analysts, Sun could have become one of the giants of the IT
industry, on par with IBM and Microsoft. Many concepts that had become the
standard in the early 2000s, like networking and open source, were first
popularized by Sun. But the company took some missteps along the way, which
did not allow it to take advantage of its resources. "They've (Sun) always
had lots of great things on paper. But when it comes to execution, they're
lacking. They always seem to be behind where they need to be" said Gary Feierstein, vice-president for information technology at Premier Inc., a
hospital management company... |
Exhibits
Exhibit I: Sun's Share Prices
Exhibit II: Sun's Annual Financials
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