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Cisco Systems

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Cisco Systems, Inc. is an American multinational technology company headquartered in San Jose, California, that designs, manufactures, and sells networking equipment. It was founded in 1984; 31 years ago, in San Francisco by Leonard Bosack and Sandy Lerner. The Current CEO is Chuck Robbins and their Headquarters is in San Jose, California, US.
They operate worldwide and provide Tech for many companies and public households.
USP: Cisco Sys's experimentations yield new products and services that outpace competitive threats
They have over 30 different products in markets such as: * Networking Devices * Network Management * Cisco IOS and NX-OS Software * Interface and Module * Optical networking * Storage area networks * Wireless, Telepresence, VOIP, Security * Datacentres
In 2014 Cisco Systems, Inc. made US$ 47.142 billion in revenue (a drop from 2013)
“The Human Network”
This was a big effort by Cisco during the early to mid-2000’s to enter into and have a bigger presence in the household consumer market. Throughout the mid-2000s, Cisco also built a significant presence in India, establishing its Globalization Centre East in Bengaluru for $1 billion, and planning that 20% of Cisco's leaders would be based there.
However, Cisco continued to be challenged by both domestic Alcatel-Lucent, Juniper Networks and overseas competitors Huawei. Due to lower-than-expected profit in 2011, Cisco was forced to reduce annual expenses by $1 billion. The company cut around 3,000 employees and eventually admitted defeat and during the analyst call 2011 CEO John Chambers called out competitors by name including HP and Juniper. After the purchase of NDS (a TV software developer) in 2012, this signalled the end of “The Human Network” strategy and a move into the cloud and software markets.
India is still the company’s biggest foreign market.
Segment: Manufactures and markets networking communications products and services, Routing & Switching Equipment Manufacturing, Control, Electro medical, Measuring & Navigational Instruments Manufacturing
Target Group: IT firms, Telecommunication companies, Construction companies and a wide variety of clients who are seeking network solutions
Positioning: Cisco Sys targets customers who have very specific needs and with solutions that are difficult to replicate
Competitors: 1.Hewlett-Packard Company 2.Alcatel-Lucent 3.Juniper Networks, Inc. SWOT Analysis | Strength | 1. Geographically Diverse Business2. Economies of scale lower cost and increases margin3. Diversified into many segments and tapping sophisticated markets4. Market leading position brings many benefits5. Robust financial performance6. Known for its strong R & D division7. A culture that experiments produces better long term values | Weakness | 1.Declining storage networking market2. Weak presence in BPO technologies/markets compared to global leaders | Opportunity | 1.Expansion through Strategic Alliances and Acquisitions2. Smart grid infrastructure could increase demand3. Wi-Fi Home Calling and mobile broadband4. Data intensive applications5. Data Mining | Threats | 1. The use of cloud servers is lowering sales and especially profits margins for cisco's core business.2. Open Source Competitors3. High competitive rivalry4. Virtualization |

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