Cisco System Inc. Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

Model Verification

The usage pattern of the internet has become quite well-known within the leading firms across the entire networking market or industry for transaction purposes and for the communication process between their employees and with their customers. The market share of the company has increased by using this model due to retaining and hiring more employees and introduction of the new updated technology has also resulted in increasing the market share of the Cisco Systems Inc. Cisco System Inc. possesses the market share of 21.9% back in the year 1996 in the entire global networking market and at that time Cisco System Inc. was considered as the market leader of the industry.

The reason for achieving this leading position is that back in the year 1993 the System Inc. expanded its business in switches by realizing its huge demand. It was also done because of the anxiety about tying with only one technology as the market was continuously shifting from one product to another product due to the non-stop improvement and innovation in the technology.

Optimization and Decision Making

One of the Cisco System Inc.’s prime objectives was to expand its product line by acquiring the new intranet technology for all of its operations, which expanded in the global as well as local markets for aligning into one goal to transfer the real time information using the information systems through development of information technology named as intranet. By working as per this strategy, the company employees would be united and could share the same data as they were located in different time zones across the globe. On the other hand, to attain the expansion Cisco System Inc. seeked out different business enterprises options such as joint ventures for acquiring the companies that were part of the network industry but had a vast range in other product lines.

Cisco System Inc. adopted the approach for its business to move beyond the selling of routers as it market was expanding. In addition, competition in the industry was shifting towards a more complex atmosphere where Cisco System Inc. must adopt the new updated technology in order to introduce the network industry for meeting the customer’s needs and wants for transferring data. As Cisco System Inc. was concerned about that; hence. they must not restrict themselves within the existing technology and this might result in removal of the company from the market and in order to avoid this the Cisco System Inc. seeked the opportunity to adopt an aggressive growth policy for further expansions. Cisco System Inc. adopted this strategy by following the policies adopted by other important companies such as General Electric and Hewlett Packard. By adopting these followed policies, Cisco System Inc. aimed on to be the first priority of the vendors that were seeking for the network solution same as IBM was for the mainframe.

Joint Marketing:

The joint marketing strategy played an important role. The best thing about the joint marketing strategy was that the product line, which was newly added into the Cisco System Inc. was marketed jointly as it saved a lot of cost for marketing and advertising. Moreover, the product they marketed was completely aligned with the company’s portfolio.

Joint Development:

This was the basic part of their strategy that there will be joint development, which needs to be carried out whenever Cisco System Inc. will be acquiring a new company or business and expanding its product line. The joint development will be made on the basis of the assumption that the product line should be completely aligned with the Cisco System Inc.’s and industries technological environment for the transferring purposes of the information on a regular basis.

Cisco System Inc. restricted themselves towards decentralization of its business units for the marketing with respect to individual unit’s needs and wants from the market and development of their products in their concerned market. Additionally, these individual business units had their own technologies that were their core competency and most importantly this was differentiating it from its parent entity. Each of these new business lines was named in accordance with the market and they were introduced as their own technology, Service Providing technology and Small/Medium Business technology.

Cisco System Inc.’s one trademark was the adaptation of the re-organization of the company with respect to the changes that occurred into the market that was rapidly changing. By hiring the new employees a on regular basis, they actually restructured themselves in a very optimistic manner. It has been mentioned earlier that the re-organization was made by hiring 300-350 employees per month and they took an important step of re-organizing its senior management by adding 25 new vice presidents over the time of two years that was about 50 in total.................................

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