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Executive Summary Cray entered the industry as a pioneer developing the foremost high-end supercomputer ever know to man The customers were limited to academic and government professions In the following eight years Cray continued to develop even faster supercomputers and is set to release two more gen-erations X-MP and Cray-2 in a year Though Cray has not changed functionally competitive land-scape has migrated significantly consumer base is now a majority of industrial users demanding software and services and competition has caught up to Crays processing power benchmarks The Market Forces Survey indicates that the strategic levers and key success factors that Cray has exploited to occupy the preeminent position in the past do not fit well with the new market that Cray is trying to target To the new market of commercial and industrial users Cray has to position itself as a Partner and not as a distanced-from-reality Innovator Pioneer Cray needs to add service capabilities to its offerings eg customization maintenance training planning etc To be successful Cray will have to bring about many changes including aligning it organizational structure with client industries reducing dependence on individual stars introducing cross functional teams partnering with third party vendors to fill in the gaps in Crays software capabilities making RD more client need focused and accountable Product development driven by Marketing more than R the knowledge of people like Seymour Cray Steve Chen into knowledge data-bases or proprietary tools partnering with clients in the all stages of value creation Cray needs to approach the implementation of this strategy in a phased manner It will have to start with a study to assess the profitability of pursuing specific industries and simultaneously commu-nicate with its employees and get their feedback on proposed changes This would need to be followed with the rollout of proposed restructuring over the next six months Finally after giving the strategy a year to unfurl Cray will have to review the strategy to
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