Cisco Systems, Inc.

1431 Words6 Pages
Cisco Systems, Inc. A potential competitive disadvantage for Cisco is supply chain issues. Supply chain issues such as delays in order fulfillment can affect Cisco’s business because the company is significantly dependent on suppliers and contract manufacturers for certain components. Due to its outsourced manufacturing strategy, Cisco has limited control over the delivery schedules and has suffered from component shortages as a result of manufacturing process issues. Additionally, the earthquakes and tsunami in Japan prompted an industry-wide component supply constraints in 2011 and the flooding in Thailand in 2012. Supply chain issues may lead to a delay in order fulfillment that can affect the revenues and margins of the company. A…show more content…
Cisco’s strategy focuses on acquiring new and well-developed technologies in addition to concentrating on self-developed technologies. Over the few years, Cisco acquired several new companies as well as technologies enabling the company to be primarily focused on high-growth markets and in technologies that are expected to drive the future of the industry. The company experienced strong growth in the last few A potential sustained advantage for Cisco is leading the market across several segments. Cisco is a leader in providing routing, switching, and associated services including comprehensive security and mobility solutions. According to the company, at the end of 2014, it had 47% share of the market for routers; 48% share of the market for TelePresence solutions; 51% share of the market for wireless LAN products; and 64% share of the market for switching products. In addition, Cisco was also the leader in voice products category with a market share of 39%. Leading market position across all its products segments provides Cisco a competitive advantage over its peers. An implication for Cisco is the pending litigation with Brazilian federal tax authorities. Brazilian authorities have investigated Cisco’s Brazilian subsidiaries, current and former employees, Brazilian importer of Cisco’s products, and its affiliates relating to allege evasion of import taxes and improper transactions involving the subsidiary
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