Cisco Systems Incorporation Harvard Case Solution & Analysis

As a matter of fact, the management of Cisco Systems knew that the major and vital part of their revenue generation comes through the customer satisfaction and quality of the products they provide to their valued customers. The best approach of the Cisco Systems was their business model that prevents them from firing the employee(s) of the acquired companies.

The policy of being number one or number two company in the entire market was implemented by Cisco as this was the philosophy of the company. The implementation of the policy was achieved in a way that Cisco was involved in the practice of hiring 300 to 350 new and fully skilled employees per month.

In addition to this, Cisco was also holding the employees that were a part of the acquired companies. One of the best approaches that Cisco followed was expanding its unique product line by developing a platform for the introduction of new and updated technology through the acquisitions of companies, their employees, and technologies.

This reason behind these approaches was that the networking industry was growing with a blinding pace and forecasting was made that it is expected to grow by $93 billion as compared to the market share of 1997 which contributed a total amount of $27 billion. The aggressive growth strategy of Cisco was also backed by the fact that in an IT industry the routers are not the only product which reflected noticeable boom, in fact other products such as LAN and WAN switches were also expanding.

The main objectives of Cisco were well supported by their business models and their effective approaches. The first and foremost objective was to gain an advantage as the first mover and for this reason; the agreement could not be done through long time taking activities and negotiations. The basic objective was to reduce the difficulty for both Cisco Systems and the customer business. The combination of the employees, technology, and product development had to be visible to each and every customer of Cisco.

Cisco Systems Incorporation has acquired many businesses and took the complete ownership of the companies by mergers. The committed IT staff of Cisco worked on the acquired company by integrating its IT systems with Cisco System that includes the professional sales automation, product order system, websites and electronic mail.

Model Verification

The usage of the intranet has been increasing rapidly all around the globe and intranet is becoming well-known by 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.

By using this business model, the market share of the company would be increased as the fact that more and more of the employees were retained along with newly hired ones. In the year 1996, Cisco was considered to be the market leader in the entire global networking market as that time the Cisco Systems were capturing 21.9% of the total market share.

The main reason behind this fantastic success in 1996 was the expansion plan persuaded by the Cisco Systems due to the huge demand of the switches and the concern of binding to only one technology at a time. Even at that time the market was continuously shifting from one product to another because of the improvement and innovation in the technology.

Optimization and Decision Making

The main issue of the Cisco Systems was that they wanted to expand their current business product line by attaining new modern intranet technology for all of the operations which were being carried out both locally as well as globally. This was done in order to transfer the real time information through the information systems by the development of the information technology known as intranet.

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. On the other hand, the management of the Cisco Systems was considering acquiring the companies that were a part of the network industry which had massive product lines.

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. This approach was considered because the nature of work was changing and it was inclining towards more complex competition..........................

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