COMPANY CASE
Cisco Systems: Solving Business Problems Through Collaboration
1. Discuss the nature of the market structure and the demand for Cisco’s products.
The nature of the market structure and demand of Cisco Systems is its business market which contains fewer but larger companies. For Cisco Systems, this implies that even though they have fewer clients than other companies, they still have a good and profitable relationship with their clients. For the customers of Cisco Systems, this implies that they will receive better and faster service and products because they don’t have to compete for the attention and service of Cisco Systems. The business market is derived from final consumer demand which means Cisco Systems must
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For Cisco Systems, if the demand fluctuates more and more quickly therefore they have to supply their customers more and more quickly and efficiently. They also have to improve and adjust their products/supplies in order to satisfy their clients’ needs that would then satisfy the final consumers’ needs. For customers for Cisco Systems, this implies that they would want more and more or they would want less than what is supplied. This means that they want something more or they want something less or something else that makes the demand for business market fluctuate more and more quickly. 2. Given the industries in which the Cisco competes, what are the implications for the major types of buying situations?
Straight rebuys: It is widely known that whenever purchase cycles come up, technology also changes. Cisco engages in the field of high technology which implies that they usually have few truly straight rebuys. Because of this, their corporate buyers may try to find better alternatives to replace the ones they already have. Because straight buys are when buyers routinely purchase something without modification, this would likely occur in the situation of Cisco when a client orders a set of router or switches shortly after purchasing the same items. A gradual rollout replacement or an expansion could be the cause of this.
Modified rebuy: Modified rebuy is when a buyer wants to modify a product’s specifications,
industry covers services and platforms with a vast variety of focal markets. The portion of the
Wireless telecom networks represent long-term growth opportunities. These opportunities are coming as major data and telecommunication carriers and providers are trying to upgrade their networks to cope with the expected explosion in data demand. Cisco has tried to exploit these opportunities by making various acquisitions such as Intucell, BroadHop, Cognitive Security etc. Cisco is also pursuing Cloud Based initiatives which are big and effective investment from the future perspective and will turn out to be a good investment for the company from future profitability and cash flow perspective.
The reason 2013 intangible assets make up more of the total assets compared to 2013 intangible assets is due to the NDS acquisition that occurred in 2013
The future of the telecommunication industry is an exciting future. No longer can these companies depend on telephone service plans to maintain profit. Each company needs to find other avenues, packages and services that can be sold to existing customers while attracting new customers. The companies
Prior to his arrival, CISCO had a decentralized approach to IT spending. Independent business groups were making decisions in fuctional silos. Each group their own funds for IT, therefore, redundant applications such as CRM systems were created. This was a global issue as well as a localized issue.
Reportedly, analysts mentioned that Cisco’s supply chain structured like a pyramid. Based on Figure 2 below, there were quite a number of contract manufacturers on the second tier who were responsible for final assembly and they were dependent on large sub-tier companies for components such as processor chips and optical gear. And in turn, those companies were dependent on an even larger base of commodity
1. Cisco suffered from inertia when an attempt was made to engage business management in selecting software for their individual areas, and/or agreeing to participate in the ERP implementation project. List and explain reasons why management would hesitate to become engaged in the IT process/project.
Cisco Systems has leveraged the power of organizational behavior to become one of the world’s leading high technology companies which is spread
This market may provide quite a lot of potentials and profit for the company, but it has suffered a lot in exploiting the market efficiently.
From incorporation in 1984 until around 2004, Cisco monopolized the industry of commercial routers and networking products. However, competition from rising giants like Juniper Networks Inc. (JNPR), Nortel Networks Corp (NT) and to some extent also Alcatel-Lucent (ALU) has given Cisco growing competition. Cisco is now in a position where competition drives its operating practices and inspires constant improvements in areas such as customer service and sales/marketing in order to maintain its market leadership. Though Cisco has lost market share to rising competitors, overall outlook remains good with new product lines set for production.
Cisco Systems is a global market leader and innovator of computer communications and networking solutions. Established in the 1980’s, the company rapidly developed into the world’s greatest manufacturer of internet routers and was/is a foremost provider of commercial communication network devices. The aim of this case study report is to create an understanding of Cisco’s historical international business activities as well as explore their recent and current developments in international business management. The ‘Recent Development’ section details both Cisco’s main strategy of Acquisitions and how the company has operated under and coped with new management.
Page eight of the case begins to outline some of the challenges that the HP-Cisco alliance had already faced concerning the sale of joint products. For example, we learn that at HP, Cisco products did not count towards a sales representative’s quota and this resulted in a decline in sales of Cisco equipment by HP sales representatives. Further, if HP or Cisco sales staff had to master not only their parent company product line,
With the maturing of the industry, the differentiation among the services provided by the players is also on a decline. The quality of service among the service providers is also converging to the industry standard and TRAI recommendations. This resulted in a price war, especially with the new players entering the existing circles. The price war has resulted in the erosion of market share of existing players and also affected the profitability of all the service providers. The average revenue per user is on a decline in the industry, and interestingly the lower tariff has not increased the minutes of usage per connection. The existing players are working hard to maintain steady addition to the subscriber base and to keep the costs of operation low. Although the market may not be attractive for a new entrant, there seems to be a strong value and upside potential remaining for the existing telecom operators to prevent the erosion of their market share.
The bulk of investment to build, deploy, and, maintain communication networks is delivered by commercial providers who are in fierce competition to deliver services to the consumers.