Cisco System Inc. Harvard Case Solution & Analysis

Model Verification

                The usage of the internet has been increasing rapidly and becoming well-known for the leading companies existing in the whole networking market and industry for their transaction purposes and for the increased communication between employees and customers of the company (Zilberstein, 2003). By using this business model the market share of the company increased due to the fact that more employees were retained and hired, the introduction of the updated technology also resulted in the increasing market share of Cisco Systems. In the year 1996, Cisco was considered to be the market leader in the entire global networking market as that time the market share of Cisco was estimated to be 21.9%.

The reason behind achieving the leading position in the market in the year 1993 was that Cisco expanded its business in switches due to the huge demand of the switches and also due to the concerns of binding with the only one technology at time when the market was continuously evolving and was shifting from one product to another because of the improvement and innovation in the technology.

Optimization and Decision Making

One of the main objective of Cisco was that it wanted to expand its product line by acquiring the new intranet technology for all of its operations which were being carried out globally and the local markets as well, for achieving the goal of transferring the real time information through the information systems by the development of the information technology was known as intranet (Zorzi, 2010). By working on this strategy the employees of the company would be united, and as they were located in different time zone, they could freely share the data in different time zones across the globe. Moreover, Cisco seeks for different business enterprises for gaining expansion through joint venture for acquiring the companies that were the part of network industry having vast product line.

Cisco also adopted the approach of selling other products than the routers as the market was expanding and the competition was getting intense in the industry. As the nature of work was changing and it was inclining towards more complex competition. Therefore, for coping with different challenges in the market Cisco adopted the advanced and updated technology and introduced it in the networking industry for meeting the needs and wants of the customers for transferring the data. Cisco had concerns that restricting within the same technology was not a good approach and this would result in the removal of the company from the market, therefore, Cisco searched for the opportunity to adopt the aggressive growth strategy for the expansions. The strategy was adopted by the famous companies such as General Electric and Hewlett Packard, so Cisco also followed those policies. By adopting these policies, Cisco had a goal for being a priority for the vendors who are seeking for a network solution same like IBM.

Joint Marketing

The joint marketing strategy played a vital role. The best part of joint marketing was that the product line which was newly added in the Cisco Systems was marketed jointly. Through this a lot of cost was saved for marketing and advertising. In addition to this, the product that was marketed was completely related to the portfolio of the company (Guenzi, 2007).

Joint Development

The basic idea behind the joint development strategy was that the joint development would have been carried out whenever Cisco acquired a new company or business and also involved in the practice of expanding its product line. The joint development was carried assuming that the company’s product line was completely related to Cisco and also the technological environment of the company used for transferring the information regularly (Pitsillides, 2008).

Cisco restricted themselves from decentralization of the business units for marketing with respect to the individual units and needs from the market and development of the products in their concern markets. These business units had their technologies with core competence and different from its parent entity. Each new product line was named after the market, and they were introduced as their technology, Service Providing technology and Small/Medium Business technology.

One of the trademarks of Cisco was adaptation of the reorganization of the company with respect to the changes that were occurring into the market that was rapidly changing. By hiring the new employees and the senior management of the company, was a key for success of the company.

Model Communication

The team of employees of Cisco comprised of around 60 people who were responsible for the purpose of the vital business operations that were heavily needed by Cisco in terms of technology usage in the rapidly growing market. Cisco was not able to identify it till date and also did not focus on developing it internally............................

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