Cisco Systems Inc. is an international firm established in America. The company develops and manufactures consumer electronics, networking, voice, and transmission technology and assistance. The headquarters of the company is located in San Jose, California. There are more than 65,000 workers at Cisco. The net worth of the company is $6.5 billion as of 2011.
A Short History of Cisco
Len Bosack and Sandy Lerner, a husband and wife duo set up Cisco Systems in 1984. They were hired as computer functions team fellows at Sanfirm University. Then Richard Troiano entered them. Lerner started to function for Cisco full-time in 1987. But his skills did not match with corporate culture and after that, he was sacked. Bosack then stopped and received $200 million. A large amount of that capital was contributed to philanthropy and the duo got separated later. Forbes listed Cisco among the 20 best-performing Ipos of the 1990s.
Cisco was not the first router-selling firm but it was the foremost firm that became commercially prosperous by endorsing different network protocols. As soon as the importance of those protocols decreased Cisco shifted to the IP router market. The company is now dominating that market.
From the very beginning, Cisco took a forceful acquisition strategy for bringing skill and playing against derivatives into the firm, frequently before those derivatives were established in the marketplace.
The company finished 11 acquisitions in 1995-96. Some of them are the largest in the industry now. Cisco acquired Cerent Corporation in 1999. This is a start-up firm which is situated in Petaluma, California in exchange for $7 billion. All the acquisitions were successful for Cisco. Some of the acquired firms have generated more than $1 Bn businesses along with Enterprise Voice over Internet Protocol (VOIP), LAN switching, and home networking company Linksys.
Administrators got a good amount of independence to attain firms but were considered for those investments. In the US firms, Cisco workers were disbursed by outcomes, and performance was seriously checked.
the height of the victim boom in late March 2000 when Cisco was supposed to be the most important firm all over the universe. At that time the market capitalization of the company was over $500 billion. The figure decreased to $108 billion in July 2009. But Cisco remained a very important player in the telecommunications industry.
What Are the Threats to the Company?
Cisco faced a lot of issues in its entire journey after the downturn of dotcom. Some of them are as follows:
New Opportunities in the Networking Industry
Solutions:
- The company acquired market noteworthiness by properly attaining skill and networking derivative originators. In this way, the company managed to grow at 70% a year.
- The company got decentralized, authorizing provincial and divisional administrators substantial independence, but evaluating (and paying) them by outcomes.
Forceful Competition
Solutions:
- The company proceeded with the acquisition in R & D. Cisco’s annual IT spending rose by 68% in the 1996-8 period (approximated to 40% in all other spendings for the time.)
- Expand different in-house systems.
The intranet of Cisco was utilized to electronically share familiar layouts among different design centers. The strategy also authorized engineers to imitate derivatives before perpetrating the design. It helps to improve design margins, reduce the number of iterations required for new product design, ensure each sub-assembly was developed to the requisite grade of quality, and create data relevant to real-time problems.
- Reduction period to market:
20% productivity improvement. 45% of the derivatives exported were not handled by Cisco. New Product opening time accelerated by 3 months due to the collaborative design devices utilized by Cisco and its suppliers which helps Cisco to save $100 million per year. The company reduced lead times for custom-configured products and build-to-order from 6-8 weeks to 1-3 weeks. Engineering Change Notice reduced periods from almost 3 weeks to 10 days with the help of collaboration tools.
- Eradicating POs and investment orders, and the extra test. Engineers reduced manufacturing expenses and reduced annual operating expenses by $75 million.
- Staff training
Cisco delivered Stanford engineering courses online, promoted company-wide meetings and broadcasts, and promoted liaison with suppliers for product growth.
Conclusion
Cisco is a very popular company. It has become very successful too. If you are going to write a case study on this you may take help from My Assignment Writing Help.
FREQUENTLY ASKED QUESTIONS
- Why is Cisco so Famous?
Cisco Systems, Inc. is a leading networking corporation that is popularly comprehended as a factory and dealer of networking kits. The corporation also delivers software and delivers assistance associated with it.
- What is the Slogan of Cisco?
The slogan of Cisco is Bridge to Possible.
- Why is Cisco Successful?
Cisco was the first firm that provided routers that may deal with several internet protocols. Their previous devices were also differentiated by their conventional CPU architecture. They have cutting-edge technology and hardware. Cisco is not a home brand but it is very popular.
