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

MODEL VERIFICATION

The use of the intranet was become familiar with the leading firms of the network market for transaction purposes and for the communication between their employees and with their customers. The market share was increase due to retaining and hiring more employees and for that the market share goes up of the Cisco Systems Inc. The market share was in the year 1996 for the global network market of Cisco was 21.9 percent and at that time Cisco was the market leader of the industry. The leading position was achieved because in the year 1993 Cisco expanded its business in switches as it was also growing exponentially. In addition, it was also because of the concerns about sticking with one technology as the market was shifting from one product to another so the technology was updating and upgrading with innovation in it.

OPTIMIZATION AND DECISION MAKING

Cisco started its business to move beyond routers as it market was expanded and market was shifting towards more complex environment where Cisco must adopt the new and advanced technology to produce in the network industry for meeting the customer’s desires for transferring data. As Cisco was concerned about bounding it with the existing technology in one aspect, which would remove the company from the existence and in order to avoid that Cisco seeks the opportunity to adopt the aggressive growth policy for expansion. Cisco started this strategy by following policies adopted by other leading companies such as General Electric and Hewlett Packard. By adopting these followed policies, the company aimed on to be the first priority of the vendors seeking for the network solution same as IBM was for the mainframe.

Cisco wanted to expand its product line by adopting the intranet technology for all of its operations expanded in the global market for aligning into one goal to transfer the real time information using the information systems through development of information technology named as intranet. By doing so the company’s employees would be aligned and shares the same data as it located in the different time zones. On the other hand, to achieve the expansion Cisco seeks out different venture options such as joint ventures for acquiring companies that are part of the network industry but have operations in other products.

Joint Ventures:

Cisco acquired 12 companies annually and became the fastest growing company in the market by having 11000 employees. Further, employees of those companies that were acquired by Cisco Systems Inc. were kept as a part of that product line operations according to Cisco’s policy. This contributed towards the expansion of the company as the experienced employees were already aligned with that product line.

Joint Marketing:

The product line that were added into the Cisco’s operations were marketing jointly as it reduced the cost of the marketing and that product was aligned with companies’ policies and objectives.

Joint Development:

The joint development was started out whenever Cisco acquired new company and expanded its product line. The development at individual product level was and distribution was aligned with the Cisco’s intranet technological environment for the transferring of the information.

Cisco reorganized towards decentralization of its business units for marketing with respect to individual units needs of products. Moreover, for development of their products in their relative market, these individual business units had their own technologies that were their core competency and differentiated it to its parent entity. Each of these decentralized business lines were named accordingly with the market they were in such as Enterprise technology, Service Providing technology and Small/Medium Business technology. Other than these three decentralized units under different technology in different markets, Cisco maintained its centralized structure for the purpose of manufacturing, distribution and financing of its core product. The reason for centralizing these was because it gave Cisco the advantage of economies of scale.

Cisco’s one trademark was the adaptation of the reorganization of the company with respect to the changes that occurred into the market that was rapidly changing. As mentioned earlier, the reorganization was made in terms of expanding its organizational structure by hiring 300-350 employees per month and reorganizing its senior management by adding 25 Vice President over two years that totaled 50. In order to expand its operations and workforce, Cisco started to set-up an extensive suite of facilities aimed to provide the electronic interactive services for customers, partners, employees and shareholders that is known as Cisco Connection..............................

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