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Vinod Khosla and Sun Microsytems

In: Business and Management

Submitted By farahjaradat
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Does Vinod Khosla have a real chance at changing Computervision’s decision? Does Sun have a better product? Can Sun be regarded as a reliable long-term vendor?

He does. Sun has the more advanced technology compared to Apollo’s, and that should be the focus in Khosla’s debate. As for reliability, it is a challenge to convince Computervision of Sun’s ability to service their order. How should Vinod Khosla respond to Computervision’s president? What should his long-term and short-term objectives be? Specifically, what should he offer to Computervision?

Khosla has to convince Computervision of two important things: Sun’s superior technology and their ability to fulfil the order.
On the short run, he should take instant steps, starting from attaining the necessary financing for increasing the manufacturing capacity, as well as creating a dedicated sales and marketing force to support it. He should also consider outsourcing opportunities in Silicon Valley, enabling Sun to complete the order quickly.
On the long run, the target is to attack the OEM market aggressively.
Koshla’s offer is the next generation open systems, coupled with the higher gross margins available to Computervision than if dealing with Apollo, since Sun is significantly cheaper. What are the consequences of not doing this deal?

Market share is the most vital element in Sun’s elementary success. The deal with a giant like Computervision will not only increase their market share, but it will also boost them in the battle to enter the OEM market. If the deal was not achieved, Sun’s reputation within the marketplace is put at stake before the company has even become established.…...

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