Cisco’s Strategy in Recessionary Times

6272 Words Sep 24th, 2013 26 Pages
Strategic Management, BSHCE3 at the National College of Ireland | Cisco’s Strategy in Recessionary times | A report on Cisco’s strategic management during recessionary times |

4/4/2013 |

Table of Contents Executive Summary 3 Introduction 3 Literature Review 3 Strategic Overview 4 Acquisition Timeline 6 Competitors Acquisitions 8 Hewlett Packard 8 Juniper Networks 8 Polycom 8 Strategic Tools 9 SWOT Analysis 9 Porter’s 5 Forces 9 PEST Market Analysis Tool 9 Other 9 Other tools include Management by Objectives (MBO) 9 Strategic Tools on Cisco 10 SWOT Analysis 10 Strengths 10 Weaknesses 10 Opportunities 10 Threats 10 Porter’s 5 Forces 11 Threat of New Entrants: MEDIUM 11 Bargaining Power of Suppliers: LOW 11
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It’s also worth mentioning that Cisco’s own website is very informative, with detailed financial and organizational structure.

Strategic Overview
From the case study delivered during class (Indu, 2010) it is clear that Cisco’s goal was to increase market share and maintain a sustained growth. Added to this continued improvement to customer and supplier relations. The company’s current mission statement states that;

‘Cisco’s mission is to shape the future of the Internet by creating unprecedented value and opportunity for our customers, employees, investors, and ecosystem partners.’ (

With a strong customer focus at the core of their business, another strategy employed by Cisco is to position themselves close to not only the customer but suppliers too. This closeness and strength of supplier relations allows Cisco to respond quickly to changing customer and in fact market demands and trends.

One of the strategic applications to enable growth and innovation was the use of acquisitions. From 1993 to present day Cisco has acquired over 150 companies in a wide range of Information Technology and Networking sectors. This is facilitating gaining and maintaining competitive advantage.

However, proving the strength of the management and effective adaptation, Cisco has been able to change their strategy when required and in 2000, after the dot com bubble burst, its highly successful strategy of procurement was abandoned and under the leadership of
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