Case Study on Vmware

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Contents

I.        Executive Summary        

II.        Description of Business        

III.        Business Environmental and Firm’s Issues        

1.        External Environment        

2.        Specific Issues for VMware        

IV.        Competitor and Industry Analysis        

1.        VMware’s Competitors        

2.        Specialty niche Competitor        

3.        Industry Analysis Framework        

V.        VMware SWOT/TOWS Analysis        

VI.        Resources, Capabilities and Core Competencies        

1.        VMware’s Value Proposition        

2.        Value Chain        

3.        VMware’s Resources        

4.        VMware’s Capabilities and Core Competencies        

VII.        Options Analysis        

VIII.        Recommendations        

IX.        Conclusion        

X.        References        

Table of Figures

Exhibit 1 VMware, Inc.: Stock Price Trend, August 2007- July 2008(2008)        

Exhibit 2 VMware Competitors        

Exhibit 3 Hypervisor Deployed in X86 servers(Jewell 2007)        

Exhibit 4 Strategic Position Map of the Virtualization Market        

Exhibit 5 Porter's Framework on the Virtualization Industry        

Exhibit 6 The Industry Attractiveness        

Exhibit 7 Virtualization Industry Life Cycle        

Exhibit 8 VMware TOWS Analysis        

Exhibit 9 Value Proposition-VMware        

Exhibit 10 Value Chain Analysis        

Exhibit 11 VIRO Framework for VMware        

Exhibit 12VMware's Capabilities        

Exhibit 13 Strategic Options for VMware        

1. Executive Summary

VMware, Inc. has established itself as a dominative player in the growing virtualization market. However, the firm’s flagship products which provides a virtual platform to guest operating system, confronts fierce competition from players such as Microsoft, Citrix and Oracle. Even though VMware accounts for more than half of the total market, its market share has been declining over last few years. Having been enjoying a high profitability long time for its top-notch virtualization platform, VMware is also facing some issues despite rivals have started to catch up in terms of performance and features.