Sun Microsystem Inc.

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Sun Microsystem Inc.

Michael Porter¡¯s Five-Force Model A. Rivalry Among Existing Firms Sun Microsystems provides product, services, and solutions for creating network-computing environments. The company sells computer systems, microprocessor, and software.

In the USA computer industry market, there are a large number of companies and thus the competition is very keen. The major competitors of Sun Microsystems include Hewlett-Packard Company (HP), International Business Machines Corporation (IBM), Compaq Computer Corporation (Compaq) and EMC Corporation (EMC). The Company also competes with systems manufacturers and resellers of systems based on microprocessors from Intel Corporation (Intel) and Windows NT operating system software from Microsoft Corporation (Microsoft). These competitors include Dell Computer Corporation, HP and Compaq, in addition to Intel and Microsoft.

Fiscal 2001 was clearly a mixed bag for Sun, the industry, and the economy as a whole. Still., Sun finished with revenue growth of 16%, which compare with Microsoft (10%), IBM (4%), HP (0%) and Intel (-4%).

So, we believe it¡¯s a good indication that Sun continued to pull away from the pack and gain market share. (As per appendix *) On the other hand, the entire computer industry is still in the stage of high growth although USA economic was recession, even the situation will be even worst after the 911 terrorist attacks. However, network computing is still the biggest value creator on the planet. The Internet and related networking technologies have changed the way we live, work, learn, and communicate.

To have the superior power in the USA computer industry, Sun is still keeping its competitive advantage from three key aspects of its business: 1) It own the key pieces of intellectual property, including critical hardware and software designs, needed to build system that are fully integratable, highly reliable, and scalable to the nth.

2) It offer...