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Introduction Of Cisco Systems Case Study

Cisco Systems, Inc is also commonly called Cisco. It is American-based multinational digital communications technology conglomerate corporation. The company is working in collaboration with other technologies in order to secure network and enhance digital communication (Khanagha et al. 2022). Hence, this is best known for its computer networking products.   Since company is also expanding business market in other aspects, the company is not initially named after this business. However, after second decade of the company, 21st century it was one of the largest corporations in the United States (Bracci 2022). The company was found in 1984 and the stakeholders decided to name it after the San Jose, California. founders of Cisco Systems were Leonard Bosack and Sandra Lerner who met during their college days decided to  establish a company that will focus on two different parts of the company (Gwangwava and Mubvirwi 2021).  The company is currently focused on largest technology companies in the world ranking 74 and closed their recent deals at 48.54 in the latest trading. The company is currently working on strengthening the company network and addressing security challenges for the network and company. As boom followed bust, the company continued to expand its identity in commercial world (Gwangwava and Mubvirwi 2021). The paper aims to discuss vision and mission statement, situation analysis, industry structure and SWOT analysis.

Introduction Of Cisco Systems Case Study

Vision And Mission Statement of Comcast

Vision statement: 

The vision of the Cisco is, “hanging the way we work, live, play, and learn.”

Mission statement:

The mission of the Cisco is “to shape the future of the Internet by creating unprecedented value and opportunity for our customers, employees, investors, and ecosystem partners” 
Their mission and vision are driven by respect, quality content and respect and entertainment.  These statements indicated that cisco realized their potential in the computer market and they have the potentials to change individuals and communicate with the individuals in most memorable ways (Arena et al. 2019). 

Vision And Mission Statement of Comcast

Cisco Situation Analysis

It is identified as one of the well-known companies for computer networking and initially million consumer lines working on the computer network for expanding their targeted. Cisco's brand slogan defines the company as “The Bridge to Possible.” Cisco enables people to make powerful connections- whether in business, education, philanthropy, or creativity (Groeger, Bruce and Rolfe 2019). However, currently this company is experiencing issue because cloud computer market expanded widely which affected the company (Groeger, Bruce and Rolfe 2019). The company also encountered challenges for violating net neutrality practices despite receiving workings. Hence, company is planning is to improve their business strategy and financial aspects in order to improve quality of products. 

Industry Structure and economic featuree:

Cisco delivers innovative software-defined networking, cloud, and security solutions. Hence, this company working in tech conglomerate which make the gear used to power the Internet. in other words, this company manufactures and sells networking hardware and software as the tele communication equipment and other technologies (Arena et al. 2019).
In terms of economic approach, this company is focusing on dynamic economic approach which is different than others. For example, Cisco is committed to moving from a linear economy, where products are used and then thrown away, to a circular economy. Since traditional model where raw materials are collected and transformed into products, it enable this company to work on traditional way of business (Bell et al. 2019). However, circular economic model enables this company to recycle the products that are not part of the program. Hence, they can focus on working on recycling as well as traditional economic.

CISCO

Business Level Strategies:

The company has a range of strategies to improve the company revue. For example, in order to expand market, the company is engaged in different product level strategy such as Geographically Diverse Business and they have lowered their price of computer network to increase profit margin (Wolf et al. 2019). They also diversify their market in software and hardware to bring revenue in the company. Selling network design, consulting, and implementation services to support the operation of its equipment are the business (Arena et al. 2019).  

Corporate Level Strategies:

While business strategies are currently suitable for the company, the company also altering corporate strategies to enhance competitive advantage. For example, the company is working on recycling strategies and cybersecurity in order to prevent security breach and enhance sustainability. 

Competitive Analysis and Advantage in the industry:

The company has a competitive strategy such as ability to reach more people through their network. The company generated   revenue selling equipment to internet service providers and telecom carriers. The company has a lot of competitors such as Aruba (HPE)· Juniper Networks · Huawei · Arista Networks (Sadowski and Bendor 2019). However, this company gained completive advantage for the nature of the products it offers to its customers and the products are innovative from the cloud computing. The company is altering their recycling strategy and planning to collaborate with telecommunication services to consult regarding best communication services (Jacobson et al. 2019).  

SWOT Analysis of Cisco Systems

Strength

One of the leading computing services.

They have several technologies, advanced enough for the high-growth market (Davis et al. 2017)

The company offers such an influential presence in the market (Benzaghta et al. 2021) unique way of distributing its products

Weakness

The company is dealing with some supply chain issues.

Intentional competition and it lacks strong influence. They have low influence on Huawei along with the other trending brands (Benzaghta et al. 2021)

 

Opportunities

They have opportunities to improve cloud storage and great opportunities for cisco.

They can increase their global preference through software market.

They can also enhance their product portfolio (Gepner et al. 2022).

 

Threats

The recently court order suggested complicated legislations and brand has faced many centripetal networking (Gepner et al. 2022).

Increasing unemployment rate, decreasing buying power, and shutdown of businesses impacted their products.

PESTLE Analysis of Cisco Systems

Political factors

The political instability is currently affecting the business. In efforts to manufacture excellent food, Cisco In is expanding their business in requirements of food and beverage production.

Economic factors

The company is gaining revenue through business industry and high interest rate will encourage the attitude towards investment. It has skill level of workforce in United States market for expanding computer business (Thakur and Sharma 2022).

  Technology factors

Cisco can access the present infrastructure to drive growth in Technology sector. Increasing liberalization of trade policy support the company to improve services of the states and create international opportunities (Thakur and Sharma 2022)..

Social factors

The society of United States is different from the home market of Cisco (Gepner et al. 2022). The company can support gender equality by supporting women in taking part in the company.

   Legal factors

The company consider whether United States have a robust mechanism to protect against data breaches or not.   This is because data breach is severe in United states.  Cisco has to carefully consider average timing of trading and products in order to improve the legal factors  (Arena et al. 2019).

 

  Environmental factors

In order to improve sustainability, reusable products are fundamental for company to label up.  The company must use eco friendly products.

Target Market Analysis:

Demographic Characteristics of Market:

Cisco has 79,500 employees where mostly are men (67%) while this company also offer opportunities to female 16% of Cisco employees are Hispanic or Latino and half of the population is looking for something that is technology oriented. The company offered products in five areas such as Networking, security, collaboration, data center and the internet (Balyk et al. 2019). The company is targeting this company the young adults and It companies requiring the computer networking. 
Cisco serves three major customers in three target markets. These markets are large organization with complex networking needs, usually spanning multiple locations and lastly, the companies with large system (Balyk et al. 2019). In this context, the company is targeting individuals who are tech savvy or require to work with high data mining and storage capacity. 

Psychological Characteristics of the Market:

The consumers in  this organization exhibit Complex buying behavior. This is because when the consumer is highly involved with the purchase, especially when they are considering computer parts, selling products related to the computer (Balyk et al. 2019). The consumer able to make significant differences between brands while buying computer network and computer related parts.  Hence, organizations and young adults mostly buy the products of cisco if they are cheap with high efficiency. 

Behaviours of the Target Market:

The consumers only cisco products based on compact assemble of network services integrated to an operating system.  In order to bring environmental sustainability, insulated winding wire of copper along with high storage capacity-based products are developed. This provides the company with the opportunity to create more-enticing products and service to the consumers (Gepner et al. 2022).

Strategies Appealing to Market:

The following strategies are appealing to the market such as 
One of the United States' largest videos
provides IT products and services across five major technologies (KIM and KIM 2019)
The nature of the products offered to the consumers and innovation regarding 5G. 
They offer most secured network and strategies to address security breach  (Trabelsi and Saleous 2019)
Constant high-speed Internet, and phone providers to residential customers
Ability to reach adolescents 

Product Strategy (Product Mix):

The company developed a range of products in their market. The common products are following:
The company offered products in five areas such as Networking, security, collaboration, data centre and the internet (Balyk et al. 2019).
They also provide wireless controllers, LAN controllers
The company provides cable and compact assembles of network services integrated services. 

Pricing Strategy: 

The major determinants of the price are high cost, market conditions, prices of similar products manufactured by competitor.  High pricing network gateways, servers, could infrastructure platforms.  Cisco network router price hovers and round ₹5000 per module (Gepner et al. 2022).  As Cisco products comes with high quality and has a high brand value. 

Cisco place and distribution:

Cisco has a wide global presence, which shows its strong place and distribution strategy in its marketing mix. The procedure of selling varies across segments for Cisco as each segment has different buying choices and requirement. Cisco’s sales team are always in search for big enterprises looking for network solutions (El Hilali and El Manouar 2019). For home solutions, purchases are intermittent and requires purchases of only few products. 

Promotional/ Advertising Plan:

The company use promotional strategies through advertisements on its websites and use social media.  The younger populations are mostly connected through social media and hence, academy publishes books relating to the current IT challenges (El Hilali and El Manouar 2019). They are partners with the engineering colleges and hence, it enables the company to expand their target market as well as promote their products. 

CISCO Competitive Analysis

4Ps’ comparisons with competitors:

Different business models of the company and different services for bringing revenue.

Product:

The company not only have products like construction of cable, they also offer data centered, internet and security based on   products. 

Price: 

Deliver a product that is better and different from the competition.
They have low price for the products compared to other competitors. 

Promotion:

This company has its internal creative agency who create the promotional contents. They also have published book which focused on IT challenges (Balyk et al. 2019). 

Strengths’ comparisons with competitors:

Cisco is shifting to software-centric solutions for their consumers which supported them to bring revenue. Five different segments in the products enable this company to improve revenue and have a potential competitive advantage (El Hilali and El Manouar 2019).

Weaknesses’ comparison with competitors:

Diversification becomes a need of every business for further growth. However, despite having diversification, this company have limited influence in many countries. Moreover, they have high legislative issues regarding products (Gepner et al. 2022).

Key success factors:

The common success factors are following:
Better and faster services
Industry and technological advances. 
An entrepreneurial spirit 
Ability of the company to reach
Cisco experienced a more than 10-fold increase in annual revenues due to LAN operating system software

Problems and Issues in Cisco Organization:

Cisco's networking solutions connect people, computing devices, and computer networks. However, currently company is experiencing issues regarding security breaching which leaked many data. Cisco has supply-chain challenges. Cisco's adjusted gross margin declined 140 basis points year over year to 65% in the first half of fiscal 2022, which started last August. The company is also have poor collaboration rate and network within the society which can affect the society. However, currently planning to alter financial and corporate strategies in order to improve revenue.

Financial Analysis

The company has high revenue such as  $19.8 billion at the end of the first quarter of fiscal 2023, compared with $19.3 billion at the end of fiscal 2022 (Gepner et al. 2022). However, company has poor financial planning that resulted in 2 billion losses in 2021. The company require to change the financial strategies in order to gain competitive advantage.

Conclusion

On a concluding note, it can be said that American-based multinational digital communications technology conglomerate corporation. The company is working in collaboration with other technologies in order to secure network and enhance digital communication. Hence, this is best known for its computer networking products. The company has a competitive strategy such as ability to reach more people through their network. The company generated revenue selling equipment to internet service providers and telecom carriers. Cisco is shifting to software-centric solutions for their consumers which supported them to  bring revenue. However, company has poor financial planning that resulted in 2 billion losses in 2021. The company require to change the financial strategies in order to gain competitive advantage. 
 

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