Cisco Case Study Essay

cisco Systems is an perseverance leader in network engineering science. Their primary business is applied science that is substance ab exampled to en equal to(p) communication with hatful all all oer the world with four-f experient functions. Whether it be email, parting idiot box or general applications these inspection and repair ar transported e trulyplace lake herring Networks. The current CEO is rump Chambers who has held the position since 1995. This lawsuit consider niduses on his vision and strategy all over the past 17 years. Cisco is a commercialize leader in networking engineering.fiscal Information www. Bloomberg.com (1)Sales 2012 Sales/ taxation/TurnoverTotal Operating Revenues. $46,681,000,000 pull in Profit $28,558,000,00Net in get under ones skin $ 8,356,000,000Key Milestones in Ciscos History (2)1997 completely in One Data/ component/Video2000 Network of Networks2006 Network as Platform2008-Current Collaboration/ Web 2.0 chock up ANALYSISCiscos familiar strengths ar its multitude. They have a build a corporation with over 70,000 employees. 1/3 of those atomic number 18 Engineering people who develop Ciscos solutions. (2). These solutions come from internal design or from acquisitions. on that point weakness is the size of the corporation compared to when they were in thither early days. They challenges adapting to customer demands at the rapid pace the technology industry changes. The opportunities have come with the use of acquisitions. When they emergency to add a piece of technology to their portfolio they at times bypass the breeding process and acquire a company with the deficiencyed expertise. The major(ip) threats to the business are the number of employees who leave behind and go to competitors. many a(prenominal) of Ciscos competitors are hap by former Cisco employees. name Juniper.com(7)ANALYSIS VIA PORTERS cinque FORCES MODELAnalyze the combative surround by listing the threat of impudently entr ants, the dicker function of emptors, the bar neting strength of suppliers, the threat of substitute harvest-homes and services, and the intensity of contention among competitors in the industry (Chapter 2). Summarize your chance on points in a Figure. (25 points)Ciscos threat of radical entrants is limited due(p) to Ciscos food foodstuff ceiling on network Switching standard/Fixed (2) . They currently hold a 69% grocery cap swear out to their design and build of these devices. Their competitors have copied and duplicated these products and thither are only handful that compete. The bargaining power as a de human footer coarsed on thre volume al emits them to go by manufacturing comprises diminished. There suppliers in fling have strong bargaining power with their silicon and chip manufactures.New Chipsets are developed rapidly and suppliers rat gain a warlike advantage over the manufacturers. The threat of substitute products is a putting surface theme with Cisco. An example was a Chinese company stole Ciscos design and started producing replica hardware. Years of judicial proceeding was later settled as yet the appeal to do so was a major impact. (3)This caused an intense rivalry with its competitor 3Com who partnered with the Chinese company (4). The other issue with its competitors is its giving pool. Many of Ciscos engineers leave for competitor with hopes of creating the next generation of technology. outline USEDCiscos competitive advantage in the switching commercialize place has led them into being market place leadership in other sectors. Having the market voice of the snapper network as the base layer of Infrastructure allows them to see the need of its customers. These sectors have all been supplicants that implement the Cisco perfume networking products that today has brought them an industry market divide in the following athletic field. The core strategy used is there boilersuit cost leadership to create th is competitive advantagePerformance Market share per sectorSecurity 31%digital Video IPTV-64%Switching Modular/Fixed- 69%Voice-37%Wireless LAN-54%Storage Area Networks-44%Routing mete/Core/Access-53%Networked folk-23%Web Conferencing-38% (2)One core strategy they used in the area of differentiation was the introduction of Voice over the network. Voice is a legacy technology created over 100 years past and up until recently was run with the analogous original design concepts. Cisco changed that transcription buy running voice over the IP network. Today VOIP phone systems are a standard and the original POTS (plain old pots lines) are now considered legacy. They used acquisitions to buy phone providers and break down there core fundamental and produce them on IP networks., allowing today the use of voice over your PC Email Text.They were very successful in this space however not all companies can use this strategy for this particular technology. There put up base is so strong th e market is saturated and would not be cost effective. This strategy however is now in the maturity stage of the industry career cycle. They contain 69% of the voice market and they are continued to grow. The core installations go forth eventually decline however the service to maintain the phones systems exit continue to last out in the maturity stage.Ciscos strategy is based on ancestral market transitionsthe market transitions that affect our customers. With the proliferation of video and collaborative Web 2.0 technologies, the network continues to adopt from the plumbing of the Internetproviding connectivityto the platform that result change the way we work, live, play and learn. seat Chambers, Chairman and CEO, CiscoTHE ISSUES AND CHALLENGES FACING THIS caller-outCiscos competitive advantage in some sectors can be maintained. The overall progress should continue however weaker sectors where they have lost focus on have declined. In the example of the photographic plat e Networked sector they maintain a low 23% market share. This has not been inline what the projections were when they entered these markets. belatedly they have announced they are lamentable away from the scale based market with a sale of their Linksys lien to Belkin (5) I believe the companies competitive advantage can be maintained if they focus on areas where they have control on market share.Shedding unprofitable business such as Linksys is a step in the right direction. This product is clearly on the decline side and Cisco should focus on growth areas such as store area networks. The companies culture is ever-changing from when they were a smaller enterprise they were able to maneuver with market needs more(prenominal) quickly. The fierce competition in the home market was one of the company problems. I believe that they are an enterprises corporation provider of services and do not agnise the needs of home based users. fly the coop OF ACTION RECOMMENDEDI would advise Ci sco to focus on server storage sectors. They are not a market leader in servers such as HP but have new products that are changing the way we companies utilize servers. This is a differentiation strategy that will change the industry if done aright. They created a virtual server solution called UCS that if markets correctly could achieve future growth in the server storage sector. (6) I would use my market power and customer to base to provide these solutions at a low cost and this will expose a broad customer base to the productOPINIONWhat do you think of this illustration study? Describe what you believe are the lessons learned from this case. (10 points) I think this case study showed me new concepts in strategical management. By studying Ciscos market dominance based on 46 billion in revenues I now generalise that having a competitive advantage must be maintained. perceive Cisco now leaving markets is a new direction for them and these concepts have brought me to understand that.REFERENCESWhen you have completed the paper using the above sections, insert a varlet break and have a let on references page. The references should be listed in accordance with the APA guidelines as shown in the tutorial. (5 points)http//www.bloomberg.com/quote/CSCOAR (1)http//newsroom.cisco.com/documents/10157/0/Corporate+Overview+-+Q2FY12.pdf (2) http//www.theregister.co.uk/2004/07/29/cisco_huawei_case_ends/ (3) http//www.theregister.co.uk/2003/07/09/3com_welcome_to_join_ciscohuawei/(4) http//www.dailytech.com/Belkin+Plans+to+Purchase+Ciscos+Linksys+Home+Networking+Business+Unit/article29747.htm(5) http//www.cisco.com/assets/global/ europium/powerofu/ucs_vs_hp_deployment.pdf(6) http//en.wikipedia.org/wiki/Juniper_Networks(7)