Introduction
Oracle Corporation is a multinational computer technology company based in Redwood Shores, California. It is the world’s second-largest software company after Microsoft. Oracle specializes in developing and marketing computer hardware systems and enterprise software products. In addition, the company was founded in 1977 by its CEO, Larry Ellison, and two of his former colleagues, Bob Miner and Ed Oates. since then, the company has grown to become a leader in the enterprise software market. Its products are used by businesses worldwide to manage their data and run their operations. Oracle’s flagship product, the Oracle Database, is one of the world’s most widely used software systems. Oracle also provides cloud services, analytics, and other enterprise solutions. This research aims to critically analyze the current economic situation of Oracle Corporation, its market structure, and how the market structure affects the company’s operations. Additionally, this research will provide recommendations on how Oracle can capitalize on the current market structure and grow its revenue over the next five years.
Analysis of the Current Economic Situation
Oracle has several specializations, and comparative advantages make it stand out from its competitors. Oracle is a leader in cloud computing, software, and artificial intelligence. The company has invested heavily in these technologies, enabling it to offer its customers more comprehensive solutions and services. Oracle’s cloud computing and software businesses have seen strong growth due to the company’s investments in these areas (Singh,2019). Oracle’s cloud business has seen a revenue increase of 9%, and its software business has a revenue increase of 8.5% (UNITED STATES SECURITIES AND EXCHANGE COMMISSION,2020). The elasticity of demand and supply will impact Oracle’s operations. Elasticity is the measure of how much the quantity of a good or service purchased changes when the price of the good or service changes. If the demand and supply of a good or service are elastic, then a small price change can lead to a significant change in quantity. For example, if the price of Oracle’s cloud computing services increases, customers may purchase fewer of these services. This could lead to a decrease in Oracle’s revenue.
On the other hand, if the price of Oracle’s cloud computing services decreases, then customers may choose to purchase more of these services. This could lead to an increase in Oracle’s revenue. The demand and supply of a good or service also impact Oracle’s operations. If the demand for a good or service increases, Oracle may need to increase its output to meet this demand. This could increase Oracle’s costs as it may need to hire more employees or purchase more equipment. On the other hand, if the supply of a good or service decreases, Oracle may need to decrease its output to meet this supply. This could decrease Oracle’s revenues as it may need to reduce its prices to remain competitive.
Thoughts on Company’s Economic Situation
Oracle is one of the world’s most significant software and cloud computing companies, and its current economic situation is vital. This is due to its investments in cutting-edge technology such as artificial intelligence, machine learning, and the internet of things (IoT). These investments have allowed the company to expand its product offerings and improve the customer experience (Finkle,2012). Additionally, Oracle’s revenue growth has been driven by strong cloud and license revenue growth of 9 % (UNITED STATES SECURITIES AND EXCHANGE COMMISSION,2020). Oracle’s investments in AI, machine learning, and IoT have enabled it to create more innovative and advanced products. For example, Oracle’s AI-driven customer service platform is designed to provide customers with personalized customer service experiences. In addition, Oracle’s IoT platform allows companies to manage and monitor their connected devices easily. These products have enabled Oracle to expand its customer base, as well as its revenue.
Oracle’s investments in cloud computing have also been beneficial. The company’s cloud platform offers various services, such as database management, storage, and analytics. This has allowed Oracle to expand its customer base and revenue and provide customers with an improved experience (Elbahri et al.,2019). Additionally, Oracle’s cloud platform has allowed the company to reduce its costs, which has enabled it to increase its profitability. Oracle’s license revenue has also grown significantly. The company has increased its customer base by providing customers with cost-effective solutions to their business needs.
Market Structure in which Oracle Operates
An oligopoly is a market structure where a few firms dominate the market, and the competition between these firms is often fierce (Wang,2022). In Oracle’s case, the company has to compete with some of the biggest technology companies in the world. This means that Oracle must continuously innovate and develop new products and services to stay competitive. It also means that Oracle must be able to differentiate itself from its competitors to gain market share. For example, Oracle has developed its cloud computing platform, Oracle Cloud. Oracle Cloud is designed to provide customers with greater flexibility and scalability than other cloud providers (Sharma,2014). This allows Oracle to stand out from its competitors and gain a competitive edge. The oligopolistic market structure also affects Oracle’s products and services pricing. Since a few large companies dominate the market, there is limited competition and, therefore, limited pricing pressure. In addition to the competition in the market, Oracle also has to contend with the power of its competitors. Since a few large companies dominate the market, these companies can use their size and resources to gain an advantage over Oracle.
How Market Structure Affects the Operation of Oracle
The market structure in which Oracle operates affects the company in several ways. Firstly, the fierce competition in the market means that Oracle must continuously innovate and develop new products and services to stay competitive. This can be costly as the company must invest in research and development to stay ahead of its competitors (Laszewski,2011). Additionally, the fact that a few large companies dominate the market means that there is less room for smaller, more nimble competitors to enter the market. This gives Oracle an advantage as it can use its size and resources to out-compete smaller competitors.
Furthermore, the oligopoly market structure creates new competitors’ entry barriers. This is because a few large companies dominate the market, and these companies have the resources to out-compete smaller competitors. This gives Oracle a competitive advantage as it can use its size and resources to out-compete smaller competitors.
Recommendations
Oracle is uniquely positioned to capitalize on the market structure over the next five years. With its vast resources and innovative technology, Oracle can remain competitive and grow its revenue. To do this, the company should focus on three main areas of innovation: artificial intelligence, machine learning, and the internet of things. First, Oracle should continue investing in artificial intelligence and machine learning technology to develop new products and services. AI and ML can help Oracle improve customer experience, create more efficient operations, and gain insights into customer behavior (Daqar et al.,2019).
Conclusion
In conclusion, Oracle is in a strong position to capitalize on the current market structure over the next five years. With its vast resources and innovative technology, Oracle can stay competitive and increase its revenue. In order to do this, the company should focus on three areas of innovation: artificial intelligence, machine learning, and the internet of things. Additionally, Oracle should invest in sales and marketing to increase its revenue.
References
Daqar, M. A. A., & Smoudy, A. K. (2019). The role of artificial intelligence on enhancing customer experience. International Review of Management and Marketing, 9(4), 22.
Elbahri, F. M., Al-Sanjary, O. I., Ali, M. A., Naif, Z. A., Ibrahim, O. A., & Mohammed, M. N. (2019, March). Difference comparison of SAP, Oracle, and Microsoft solutions based on cloud ERP systems: A review. In 2019 IEEE 15th International Colloquium on Signal Processing & Its Applications (CSPA) (pp. 65-70). IEEE.
Finkle, T. A., & Scoresby, R. B. (2012). Larry Ellison and Oracle Corporation. Journal of the International Academy for Case Studies, 18(7), 111.
Laszewski, T., & Nauduri, P. (2011). Migrating to the cloud: Oracle client/server modernization. Elsevier.
Sharma, R., & Trivedi, R. K. (2014). Literature review: cloud computing–security issues, solution and technologies. International Journal of Engineering Research, 3(4), 221-225.
Singh, N. P. (2019). Oracle acquired AI startup DataFox. Industrija, 47(2).
UNITED STATESSECURITIES AND EXCHANGE COMMISSION. (2020). Oracle Corporation. https://s23.q4cdn.com/440135859/files/doc_financials/2020/q4/8a227df9-679d-4dbc-ae1e-b62c435b22ee.pdf
Wang, O., & Werning, I. (2022). Dynamic oligopoly and price stickiness. American Economic Review, 112(8), 2815-49.
write