Cisco Case Study
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Cisco is a company that tries to solve problems related to business and communication through collaboration. It runs the “Human Network” ads. The highest percentage of its sales is in switches, routers and the advanced network technologies. Cisco has been successful due to the concept of collaboration with its clients. The company does not only manufacture items that make collaboration possible; it is also an expert in using them. According to Bourque, the pragmatic campaign on advertisement (Human Network Effect) helps customers understand how Cisco’s technologies can save money, bring products to markets faster, and even have an impact on the environment. Cisco has witnessed a transition from hardware to services with the Internet. The company is aware of the most important thing in a company, which is breaking down the communication barriers between the company, its suppliers, customers and partners. Cisco has installed switches, routers and citywide Wi-Fi.
Cisco was in 2002 a leader in software and hardware technology for corporate networks and routing traffic. Its growth matches the high number of employees. Its challenges started when shares and revenue started to drop as technology went out of order. Cisco dropped nearly a fifth of its employees. So as to solve the problems, Cisco decided to build a strategy from within rather than buying it soas to develop future leaders and strategic thinkers. The strategy was aimed at shifting to company to a productivity and profitability from a growth and acquisition. In 2003, it launched the Cisco University which could help nurture and use in-house talent. The university provided the company with trained adaptable and versatile employees.
Cisco was able to successfully implement the new strategy in three years and was recognized. Cisco learned that managers ought to develop new capabilities as organizations evolve and develop challenges. Challenges are better solved when the existing competitors think differently rather than applying uncontrolled growth.
The SWOT Analysis
Cisco has been aided by the use of SWOT in its operations all-through. Strengths and weaknesses guide Cisco on identifying their pros and cons while opportunities and threats guide them on identifying the external environment. One of the strengths of Cisco is simplicity in its operations which in turn make planning and decision making easy. Cisco uses the concept of SWOT to explore possible solutions to problems and hence make concrete decisions for different initiatives. It helps them identify opportunities that will be successful. In addition, it helps in determining a situation where one can make changes (Bourque 2012).
Cisco’s main strength is a strong financial performmance. Secondly, they have various product offering and customer base. Lastly, Cisco has a widespread geographic reach. Its weaknesses include the relative feeble presence in China and the reducing storage networking market share. Cisco’s opportunities are the strategic alliances, acquisition, the growing security market, and finally the high demand for communication solutions. Lastly, its threats are the intense competition, dependence on suppliers, and consolidation in the US communication industry. Cisco is able to identify its SWOT and hence is able to build its strengths, minimize weaknesses, seize opportunities and counteract threats (Cisco Systems). It holds a high position in its performance and provision of services. It also provides a very important source of data and information for companies. The key roles of Cisco is designing, manufacturing, and selling IT related products. It also provides services related to their products use.
Cisco is a successful company in solving communication problems worldwide through provision of the Internet. Collaboration with its stakeholders, suppliers and customers has also contributed to its success because it is able to get more information that is important in its operation. Having a SWOT analysis of itself is another attribute to its success. SWOT enables it to build its strengths, minimize weaknesses, seize opportunities and counteract threats.
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