Case Study Of Oracle: The Threat Of Customer Resource Management

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Q.1Examine the reasons that led Oracle, one of the world's leading software companies, acquire PeopleSoft. On January 07, 2005, Oracle Corporation, the second largest software company in the world, announced that it would acquire PeopleSoft Inc. at $10.3 bn. There are several reasons behind this acquisition who made Oracle to Acquire PeopleSoft. First, the Oracle wants to be strong in developing the products and he knows with the evidence that PeopleSoft already developing some products which are not matching with the software market and it is very beneficial for him. Oracle getting some difficulties in developing the products that’s why Oracle acquire PeopleSoft. Oracle knows that people soft have advanced customer relation Management (CRM)…show more content…
By this software, oracles can offer any business software product and service to other growing companies. In short, Oracle wanted to be the sole supplier of software market that’s why oracles made his bid on PeopleSoft on June 06 2003. The bid for people soft was the part of a strategy of oracles because by this oracle can get the long-term growth in strategic position. In Short, oracles want to gain the market shares for the long-term growth. Being a hi-tech Company, Oracle Faced a real Threat of Technological Changes Because before the software industries was transforming from growth Phase to Maturity that’s why it was periodic shakeout for hi-tech companies After the Market Survey, oracles realized that PeopleSoft have the capabilities which oracles required and it is beneficial for them thus which made it the right candidate for the merger As before, the people soft was one of the biggest competitors of…show more content…
Before merging, the share price of Oracles and people soft was not that much high but after merging these two companies the share price raised by 10% for both companies The Main Benefit of merging the companies is that the capital of new company is increased Before Merging the Revenue of Oracles was $10.2Billions and Revenue of People soft was $3billions but by merging these companies the revenue of the newly based company is increased. Merging give a Good advantage to oracles to make relation with market and as well as with the competitors In Short, after merging the size of business give them a huge Economic Scale Value and efficiencies which made oracles more efficient In enterprise software industry, the increase in business size makes the company competitive and more profitable The other Benefit of this takeover is that the other new company have a variety of employees leading to diversified clients. Before merging the number of Employees of Oracles was more than 40000 while the number of employees of PeopleSoft were more than 11000. After merging, between these Employees a new company can select the best workforce

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