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Cisco Essay

In: Business and Management

Submitted By rsinghal2005
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The 4 Environment sectors that affect Cisco the most, are – * (E) Market Sector: Being a product maker for consumers as well as business this sector is very important for their sustained revenues. * (A) Industry Sector: the industry that Cisco exists is highly competitive and thus will have an impact. * (J) International Sector: With presence in multiple international markets, this will be an important sector * (F) Technology Sector: Being a technology company, innovation and production techniques are important.

Ravi’s personal rank order is : 1. Techniques of production, computers, IT, science, e-commerce (The Technology sector) 2. Customers, clients, potential users of products and services (The Market sector) 3. Competitors, industry size and competitiveness, related industries (The Industry sector).

Technology Sector : Trends are - SDN (Software Defined Networking), commoditization of hardware (switches and routers), maturing market of networking, Virtualization and Cloud based services. Techniques of producing software – Agile versus Waterfall. Techniques of producing hardware – Commodity silicon versus custom ASICs.
Outsourcing and off-shoring trend : New cutting edge design and development in US (Art). Work that is easily replicable or that can be scripted (Science), is given to cheaper Asian nations.

Customers : Enterprise, Service Providers. New trend among Cisco’s clients : they are graduating to be consumers of IT services; there is a need for end to end architecture rather than specific point solutions.

Related industries : IBM moved to services when faced with similar commoditization.
Competitiors : Huawei commoditizing routers and switches, Riverbed, Juniper, HP.
Dell, HP facing similar commoditization challenges.

Next slide : The 2*2 matrix of Envt Complexity versus Stability . Position of Cisco is in Highly Complex-Highly Unstable quadrant. Becz large number of small players keep coming in, and going out of the industry all the time. There are large number of competitors, each biting at different areas of Cisco’s target market.
Misc notes : Functional structure does not make sense in Cisco any more due to end to end architecture requirements in the market today. If Cisco were still doing box solutions, Functional structure would have made sense. The market is changing rapidly, there is a need for faster innovation. Cisco has a Strategic Business Unit structure (in Prof Tyler’s words).

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