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BU635 Global Operations and Logistics
INDIVIDUAL CASE REPORT
Cisco Systems Inc.: The Viking Challenge
Submitted to:
Mr. Dave Swanston
Submitted by:
Vishal Gupta
ID: 125821880
20th March 2013
Executive Summary
Cisco Systems Inc. is a $100 B technology company which provides internet networking solution to telecommunication and broadband service provider corporations. Cisco is leader in developing the networking equipment for the industry.
Cisco wants to develop a new generation router Aggregation Services Router (ASR) 9000 to satisfy the growing demands of market for faster and cheaper networking equipment. Cisco realized that to protect its leadership position in
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Cisco management added one more layer of complexity to an already very challenging problem by deciding that manufacturing of ASR9000 router will take place offshore from the inception. This is first time such a complex product will be developed outside the USA.
This multilayered challenge will not only assess competencies of the Cisco’s established NPI process but also test its capabilities to manage its supply chain and global operations.
2. Analysis
Cisco is undoubtedly a front-runner in the very competitive world of networking equipment. To maintain its leadership position, Cisco needs to develop innovative products and technologies all the time. By 2007, its two core product categories, routers and switches are responsible for approximately 65% of the revenue generation for Cisco. Complex networking product like core router CRS-1 and branding campaign “The human network effect” helps Cisco to become one of the biggest companies in the world.
2.1 Why rush?
Cisco anticipates that its new generation product ASR900 will be critical to satisfy the fast growing needs of global internet market and eventually increase its revenue. This router could be customized and improved to meet the internet service provider’s demands. Hopefully, once fully developed this router will provide an edge router platform for the next 10-15 years and allow
Autonomous System Border Router (ASBR): An OSPF router that connects to routers that do not use OSPF for the purpose of exchanging external routes into and out of the OSPF domain
Now that the Network design stage is complete, the team must now determine the hardware and software needed to bring the network design to life. As discussed the backbone of Kudler’s Fine Foods network will be a routed network with LANs and a WAN. IN this case the LAN or Local Area Network will be everything Kudler Fine foods have on the internal side of its routers and firewalls. The WAN or Wide Area Network will be everything in between the LANs at each one of the Kudler Fine Foods locations.
Held, G. (1999). Data communications networking devices: Operation, utilization, and LAN and WAN internetworking. Chichester: Wiley.
Cisco Systems, Inc. is an IT company that specializes in the selling of networking and communication products and services. It is a B2B company where they sell its products primarily to large enterprises and telecommunications service providers, but it also markets products designed for small businesses and consumers such as routers, modems, and home network management software. The products and services aim to transport data, voice and video communication within buildings and campuses as well as around the globe. The services include routing, switching, home networking internet protocol telephony, optical networking, security,
With the network performance issues being addressed through a restructuring and the implementation of specific VLANs the routers themselves can be optimized by the removal of the current, singular routing table which has grown so complex with a Virtual Routing & Forwarding (VRF) instance which permits several routing tables to exist at any one time, all of which can be updated with network and boundary information and therefore remove the current performance issue on router CPU utilization as well as providing a further element of a scalable network.
In 1995, John Chambers joined Cisco Systems as president and CEO. After six years under the supervision of Chambers, the company went from generating $2.2 billion in annual sales to $22.3 billion. As a result of the market downturn in 2001, the company suffered its first loss and laid off 18% of its workforce. Chambers quickly realized Cisco was in need of significant organizational restructuring if Cisco were to survive and thrive the downtown. This change shifted the company from a decentralized firm that only focused its three work silos of Marketing, Engineering and Sales to segregated and specific customer groups to a centralized firm that focused on collaboration and relevant technologies for given customer groups. This
Cisco 's efforts to restructure have created many challenges for this team. Upon analysis, we have concluded that the decision to reorganize in order to keep Cisco relevant in the evolving technology market is the correct one. The company needed to adapt in order to maintain their strong reputation in the industry. They have gone
Cisco Systems, Inc. designs, made, and vends networking products based on the Internet Protocol equipment and facilities connected to the telecommunication and information technology business globally. Cisco Systems is controlling the market for these kind of equipment based on the IP protocol. The company manufactures and vends
From incorporation in 1984 until around 2004, Cisco monopolized the industry of commercial routers and networking products. However, competition from rising giants like Juniper Networks Inc. (JNPR), Nortel Networks Corp (NT) and to some extent also Alcatel-Lucent (ALU) has given Cisco growing competition. Cisco is now in a position where competition drives its operating practices and inspires constant improvements in areas such as customer service and sales/marketing in order to maintain its market leadership. Though Cisco has lost market share to rising competitors, overall outlook remains good with new product lines set for production.
Since it was critical to Cisco’s strategic commitment of advancing, the company had to pick the best option to implement quickly. The two alternatives were know as: create knowledge and expand the community. With key decision criteria , this report carefully examines both of the options that can quickly be implemented and yet help Cisco integrate into IoE era.
Cisco System becomes a $12 billion high-technology company with over 47,000 employees in not less than 54 countries of the world due to its strategic management policies and practices among which is diverse
Besides, to succeed its challenge Cisco in this industry, Huawei’s needed to show it pin-point company strategy on its capabilities and core competencies, generic competitive strategy framework and international strategy to against Cisco.
The nature of the market structure and demand of Cisco Systems is its business market which contains fewer but larger companies. For Cisco Systems, this implies that even though they have fewer clients than other companies, they still have a good and profitable relationship with their clients. For the customers of Cisco Systems, this implies that they will receive better and faster service and products because they don’t have to compete for the attention and service of Cisco Systems.
Cisco Systems is one of the fastest growing companies in the world, selling devices that connect computers to the Internet and to other networks. Cisco’s products are being replaced continuously, so extensive training of employees and customers is needed. Cisco recognizes that every member of its team, since the employees until
Huawei also pitched the fact that any Cisco-trained engineer could operate the Quidway router with ease. Cisco’s rise to the leadership in networking equipment and technology was the result of many years of diligent, hard work and creativity. Cisco holds several patents, copyrights, and trade secrets that are critical to its success. Huawei, on the other hand, chose to make shortcuts and had complete disregard for the sanctity and legality of intellectual property. In fact, Huawei’s Vice President confessed that “all the world’s leading equipment suppliers are our learning modules.”[1] Can Huawei’s belief in “learning” from their competitors and Cisco’s belief that Huawei stole and copied intellectual property be attributed to a differing ethical perspective due to culture? We will discuss this in Section 3.