Strategic Tech

MySQL Open Source Data Base

1. At the time of the case in 2004, has MySQL been a successful company? Why?

At the time of the case MySQL had been a successful company. The value proposition for the company’s product was its open source nature and the ease for installations. The company was becoming popular in the tech industry. It was evident from the fact that they had an increasing rate of download day by day. The company held by 25% of the Relational Database Management System by 2004. They were partnering with SAP who was the ERP giant at that time. The new product that the company would produce in alliance with SAP would increase the SAP installations for large commercial applications. MySQL got featured in many magazines and press conferences. Large corporations like Microsoft, IBM and Oracle had started taking notice of MySQL.

2. How attractive are the different market segments in the DBMS industry to MySQL?

The different markets segments are very attractive in terms of the customized solutions they require. It totally depends on the company which segment they want to cater to in the future. The few advantages and disadvantages of serving each market segment are:

Enterprise wide and websites

They are willing to pay more but require great commitment for services from the database management systems company. They require a lot of customization as per their requirements.

Standalone software and Embedded & Integrated systems

They require a low cost product but their usage is a lot more than the other companies. They are quick to report bugs.

3. What are the firm’s competitive advantages, how sustainable are they, and in which market segments do they have the best fit?

The company’s main product was the open source software. It had a very easy to install interface. Dual licensing is one of the competitive strategies of the company. This strategy proved very important in the rise of MySQL as it led to creating a barrier to...