Confronting Reality: Master the New Model for Success by Larry Bossidy & Ram Charan

Author:Larry Bossidy & Ram Charan
Language: eng
Format: mobi
Publisher: The Crown Publishing Group
Published: 2004-10-18T14:00:00+00:00

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MODELING THE SOLUTION FOR SUN

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External Realities: As with EMC, Sun’s customers deserted its high-priced, high-performance products after the tech bubble burst, and looked instead for cheaper alternatives.

Financial Targets: Revenues plunged, and margins collapsed; cash generation slowed drastically.

Internal Activities: Sun maintained its technological leadership with intense R&D efforts. Its people and organizational processes were geared to selling unique and demonstrably superior products.

Iteration: Judging the market change as cyclical, McNealy at first stuck to his original strategy and focused on cutting costs with the hope of eventually getting back to his financial targets. As it became apparent that the changes were structural, he went through many iterations to find other ways to meet the target, including broadening his market with lower-priced models, pooling his resources with other technology suppliers, and moving toward open architecture in some product lines. At the same time he has continued on his traditional course, spend heavily on R&D to develop dazzling new technologies over the long haul.

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