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The Competition snatch the Cray Research (English)

The world of super-fast supercomputers are warming. Despite the computer genius Seymour Cray has been a pioneer in technology, and its Cray Research Co. has long dominated the market, companies American, European and Japanese are mainly threatening the leadership of Cray. Supercomputers are vital to cutting-edge scientific research, for the defense military and for the development of numerous technologies, from pharmaceuticals to engineering aerospace and high-definition TV. The race international field that includes many of the politicians U.S. working to help U.S. efforts, for economic and national security. What happened to Cray? Cray Research was founded in 1972 by Seymour Cray, which began as one of the key designers Control Data. Since first introduced in 1976 super-computer in the world, the Cray 1, the company was maintaining the lead by a wide margin in the industry. Partly due to the dominance it had over the new technology, Cray was able to afford to concentrate their energies at what he did best: P & D-intensive farming of new projects and risky to produce the fastest computers in the world. Meanwhile, many other companies would snapping up the market for Cray, focusing on "Mine-supercomputers", smaller and slower, but not so expensive and better suited to the needs of certain companies. As the competition is fierce and the falling demand for supercomputers, Cray was pressured to become more pragmatic and more focused for the market. Moreover, there was pressure being generated internally. In 1980, Cray had handed the reins of John Rollwagen company - a graduate in engineering and business administration - and started to change its orientation and area of concentration. While Cray worked on the Cray 2, which used a technology radically new (computer chips made of gallium arsenide instead of silicon), the CEO Rollwagen began to worry about not putting all eggs Cray in the same basket. He authorized a project more reliable, created by Steve Chen (a brilliant designer computers come from Taiwan), called X-MP, which could alter the Cray 1 to have a performance better. The project was successful and resulted in three mo-delo times faster than the Cray 1. In 1986, when the Cray 2 - using the older technology of silicon - became done Rollwagen found himself facing a difficult challenge. Seymour Cray began work on the Cray 3, another revolutionary design that depend on technology gallium arsenide, while Chen sought funds bulky for your own research project, which rival that of the Cray 3. After spending more than 50 million in the project of Chen, Rollwagen opted to cut his resources in 1987 saying it was too risky and that the money was tight. The decision to Rollwagen forced Chen to leave and the start his own company, Supercomputer Systems, Inc., using funds from IBM. Thus, the Cray Research investigator whose mind has lost a prime was only lower than that of Seymour Cray, and that was key to the success of the company. More tough choices appeared on the way Rollwagen. In 1985 the company increased 66%, and its net profits increased 20%, but in 1988 the Sales climbed 10% ram-only and the profits of the first quarter of 1989 fell to only 1.5 million U.S. dollars on January 16 million dollars in sales (profits 1988 had been 26.4 million dollars over sales of 145.8 million). Multiple computers rivals appeared on the market, most notably the new SX-3 N-EC, a silicon computer chip that is said to be faster than the Cray 3. In 1989, the Cray had consumed three 120 mil-homes research funds and their calendar was being delayed. Rollwagen again decided to resort to a safer alternative and cheaper. Decided to discontinue the capitalization of the Cray 3 and support the Y-MPI6 a improvement of silicon-based computers from Cray already exist and which is designed to be as fast as Cray 3. This choice took out of Seymour Cray company and founded the Cray Computer Company, a rival "Friendly" Cray Research. Cray Research owns 10% of the shares of the company and handed him 150 million dollars. Seymour Cray will need to seek resources additional elsewhere. Developments in the supercomputing market and n-iinicomputadores meant a drastic shift in landscape of Cray Research, a company that formerly paid too little attention to the market. Now, the side of commercial supercomputers, the dynamics of competition and internal pressures forced the leadership of Cray Research to adopt strategies that are leading to company even further from its origin as a stronghold of visionary and cutting-edge research on supercomputers Questions: 1. The emphasis of Rollwagen, more pragmatic and oriented by market has been the right strategy? You can suggest a better alternative? 2. His decision to split the company in two was the best approach? 3. What special problems arise with the diversification? The Rollwagen that can do to integrate the efforts in super-mini and supercomputers? 4. What Cray and other American companies can do to better compete with the Japanese? 5. What role people like Seymour Cray will represent in computer firms in the '90s? Source: STONER, The James F., FREEMAN, R. Edward, Administration. Rio de Janeiro: PHB, 1995.

Case study taken from the site: www.professorcezar.adm.br/