Case Study for Cisco

1382 words 6 pages
Cisco Case Study
Cisco Systems, Inc. (NASDAQ: CSCO) is an American multinational corporation headquartered in San Jose, California, United States, that designs and sells consumer electronics, networking, voice, and communications technology and services. Founded by Len Bosack and Sandy Lerner, a married couple who worked as computer operations staff members at Stanford University, along with Nicholas Pham, founded Cisco Systems in 1984. For the first time in a decade Cisco experienced its first negative quarter in 2001. The loss of earnings was due to the economic down. Their sales declined by 30%, inventory surplus was written off as a loss to the tune of $2.2 billion, 8,500 workers were laid off and stock prices plummeted by almost
…show more content…

No matter what, (Berinato). This left Cisco obligated to the manufactures even if business was not doing well or they had no need for the components.
Management at Cisco failed to recognize fault. CEO John Chambers blame the economy for his company’s failure; he left his management and the software without any blame. Instead of realizing that the overreliance on an inaccurate system and poor inventory control coupled with the economic downturn caused Cisco’s near implosion.

SWOT Analysis Strengths | Weaknesses | * Market share leadership * Strong management team * Accusations * Outsourcing * Technology | * Poor supply chain * High risk in a company relying solely on Virtual Close * No Management Accountability * Outsourcing * Technology | Opportunities | Threats | * Technology * Transformational leadership * Innovation * Lean Production systems | * Competition * Pricing * Substitution * Change in target Market * Brand Loyalty |

Business Level and Corporate Strategy
Cisco’s success was due two main strategies outsources manufacturing and growth through acquisition. This proved to be very lucrative for Cisco before the 2001 crisis. “From the time it went public 11 years ago, Cisco was never not growing. Sometimes its growth was staggering. Its stock split 12 times in the ’90s. Its revenues went from millions to billions to tens of billions as fast as the Internet would let it. At its height, say, May 2000,


  • Case Study on Marketing of Cisco Systems
    1102 words | 5 pages
  • Case Study: Partnership for Lebanon and Cisco Systems
    2153 words | 9 pages
  • It Management
    6670 words | 27 pages
  • Competitive Analysis for Cisco in China
    5194 words | 21 pages
  • Cisco Restructuring Analysis
    973 words | 4 pages
  • Cis 560-Security Access & Control Strategies
    1399 words | 6 pages
  • Running Room Case Study
    1277 words | 6 pages
  • Professional Portfolio
    2219 words | 9 pages
  • Employee Engagement
    1994 words | 8 pages
  • Cisco Systems, Inc.: Collaborating on New Product Introduction
    12055 words | 49 pages