Competitive Analysis for Cisco in China

5194 words 21 pages
Strategic Analysis of Cisco in China
Presented By:
Gary J. Pelkey
Fall 2010

Table of Contents
Introduction 5
Macro Environment Analysis (PESTEL Analysis) 5
Political Factors: 6
Economical Factors: 6
Societal Factors: 7
Technological Factors: 7
Legal Factors: 8
Micro Environment Analysis (VRIO Analysis) 8
Analysis of Competitive Environment 11
Porter’s Five Forces Analysis to the industry 11
Threat of New Entrants: 12
The Bargaining Power of Buyers: 12
Bargaining Power of Suppliers: 13
Threat of Substitute Products: 13
Rivalry among Existing Firms in the Industry: 13
Porters Diamond Model to the Chinese Market 14
Demand Condition: 14
Related and Supporting Industries: 15
Firm’s Strategy,
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In all the sectors of the business, technology is required and assists in making the day to day practices easier (Ambler, Xi & Witzel, 2008). The technological advancement assists in the economic growth and societal improvements, which further assists in the improvement of business practices in a country.
In China, the technological advancements are increasing and enhancing the business practices of Cisco effectively. The business practices of Cisco are becoming more advanced and provide competitive advantage to the company in the competitive business environment (Bunnell, 2000).
With the advent of globalization, the strong R & D base and other facilities have improved the performance of the business of Cisco. Computer networking industry has benefited a lot from this and assisted in providing the advanced technological base to the business. It is essential for Cisco to become attentive to fulfill the variety of requirements of the consumers (Velte & Velte, 2004). The Chinese business environment is adaptive towards the new technologies and their development.
Legal Factors:

The major legal factors that may affect the performance of Cisco in China are law related to the information system. IT is integral for Cisco to impose its copyright and patents in China to compensate for the variety of IT laws and IT globalizations (China:


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