Cisco Systems Inc. Analysis
Cisco Systems Inc. AnalysisINTRODUCTION
Cisco Systems was started by a team of husband and wife, Leonaid Bosack and Sandy J. Lerner in 1984. They developed the first specialized microcomputer that enable two or more networks communicate with each other by deciphering, translating and funnelling data between them. This microcomputer also called as “multi-protocol” router has opened up and boosted the functionality of the Internet world. Over the years, Cisco managed to become the spearhead in the data networking equipment market which saw the company provided and manufactured large-scale router that powered the Internet.
As Cisco Systems grow and expand over the years, so did the company’s product portfolio. With routers and switches being the core products of the company, other products and services such as hubs, access products (connection for remote access), web scaling products and technologies, security products, InterWorks for SNA, IOS software and network management has slowly become a part of Cisco Systems product portfolio. This expansion of portfolio was made possible through the several acquisitions and partnerships. By 1998, Cisco managed to hold either number one or number two position in 14 of the 15 markets in which it competed. This has made Cisco the top choice among large companies to buy company’s line of products and services. This situation may also reflect from the strong financial growth of Cisco. From 1994 until 1998 Cisco’s total assets sky-rocketed from $1.1 billion to $8.9 billion. In just 8½ years, Cisco’s market value managed to reach the $100 billion mark which beat the record of 11 years set by giant consortium of Microsoft. The contribution factors for Cisco’s success were the bold, well-planned and creative strategy of the Cisco’s management when structuring business strategic plan for the company, throughout the acquisition process and also during the integration process of acquired company into Cisco’s system.
In July 1998, Cisco announced an agreement...