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Sammi Haddix

Sammi Haddix. Snapshot. Cisco Systems Inc. was founded in 1984 and are headquartered in San Jose, California. Employee over 73,000 people worldwide. Have over 460 offices globally. And Are located in over 165 countries. Snapshot.

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Sammi Haddix

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  1. Sammi Haddix

  2. Snapshot • Cisco Systems Inc. was founded in 1984 and are headquartered in San Jose, California. • Employee over 73,000 people worldwide. • Have over 460 offices globally. And • Are located in over 165 countries.

  3. Snapshot • Cisco Systems Inc. designs, manufactures, and sells Internet Protocol (IP)-based networking and other products related to the communications and information technology (IT) industry and provide services associated.

  4. Snapshot • Cisco Systems is a leader in the communications and technology industry. • Their two primary products are routers and switches. • They primarily operate in the United States, Canada, and Europe.

  5. Products & Services Among Cisco’s wide range of products & services they offer here are a few… • Routers & Switches • Wireless LAN Controllers • Security Products • Voice & Video Conferencing • Storage Area Networking • They also offer technical support services for all of their business products

  6. Financial Snapshots Net Sales (In Millions) 2008 $39,540 2009 $36,117 2010 $40,040 2011 $43,218 Information from Cisco’s 2011 Annual Report

  7. Financial Snapshots Net Income (In Millions) 2008 $8,052 2009 $6,134 2010 $7,767 2011 $6,490 Information from Cisco’s 2011 Annual Report

  8. Financial Snapshots Information from Cisco’s 2010 & 2011 Annual Reports

  9. Financial Snapshots Based off geographic locations.

  10. Information Regarding Geographic Locations • Cisco divides it’s business segments into four geographic regions: • United States & Canada • European Markets • Emerging Markets • Asia Pacific

  11. Geographic Locations (cont.) • Emerging Market Segment: • Eastern Europe • Latin America • Middle East • Africa • Russia • The Commonwealth of Independent States

  12. Geographic Locations (cont.) • Asia Pacific Segment: • China • Australia • South Korea • India • Japan

  13. Financial Snapshot In Millions of Dollars • U.S. & Canada $21,740 • European Markets $8,048 • Emerging Markets $4,367 • Asia Pacific $5,885 Information from Cisco’s 2011 Annual Report

  14. Financial Snapshot In Millions of Dollars • U.S. & Canada $23,115 • European Markets $8,536 • Emerging Markets $4,966 • Asia Pacific $6,601 Information from Cisco’s 2011 Annual Report

  15. Financial Snapshots In Millions of Dollars Information from Cisco’s 2011 Annual Report

  16. Financial Snapshots Based off product categories.

  17. Product Categories • Cisco groups their products into four different categories: • Routers • Switches • New Products • Other Products

  18. New Products • New Products: • Video Connected Home • Networked Home • Pure Digital products • Video Systems • Cable Products • Collaboration • Unified Communications • Cisco TelePresence • Security • Wireless • Data Center • Application Networking Services • Storage • Cisco Unified Computing System products

  19. Other Products • Other Products • Optical Networking Products • Emerging Technology Products

  20. Financial Snapshot In Millions of Dollars Routers $6728 Switches $13,454 New Products $11,386 Other Products $852

  21. Financial Snapshot In Millions of Dollars • Routers $7,100 • Switches $13,418 • New Products $13,025 • Other Products $983 Information from Cisco’s 2011 Annual Report

  22. Financial Snapshots Information from Cisco’s 2011 Annual Report

  23. Target Market • Cisco’s target market for their products & services is large businesses & telecommunications companies. • They also have products & services for small businesses & consumers. • Main source of their income comes from their business to business sales.

  24. Key Locations • For Manufacturing… • Approximately 95% of all Cisco’s manufacturing for their products is outsourced to partners in Asia, Europe, and North and Central America. • For Selling… • United States • Canada • Europe • For Operating… • United States • Canada • Europe

  25. Growth • Cisco’s moving into neighboring markets that offer strong growth potential. • Able to grow quickly because of their acquisition strategy. • Recently acquired several communications technology companies. • Are looking to expand even more.

  26. Core Competencies • ‘Grow Faster Than The Market.’ • Diverse product portfolio. • Provides for long-term growth potential. • Differentiated from their peers. • Expanding current portfolio. • Thisexpansion will increase the need for their core products.

  27. Business Model

  28. Competitive Position • Compete in the highly competitive communications and technology industry with a wide variety of competitors. • Currently hold a strong market position in core segments. • They are maintaining market shares of over half the market for their two main products. • Only company with leadership across all primary market segments it serves.

  29. Competitive Position • Had attempted to make a strong move into the consumer market with the handheld vide camera ‘The Flip’. • ‘The Flip’ proved to be unsuccessful for Cisco. • They were trying to sell consumer products as if they were for businesses. • High price tag and quality. • Competitors offering similar products at lower price tags caused ‘The Flip’ to be unsuccessful for Cisco.

  30. Competitive Position • This flop in the consumer market caused Cisco to change their strategy and shift focus back to their key areas: • Routing and Switching • Workplace Collaboration • Data centers • Video • Architecture that integrates the network

  31. PEST Analysis

  32. PEST Analysis Political • Reduction in Government Expenditures on IT from Europe • Reduction in Government Expenditures on IT from the United States • Variations in Corporate Tax Amongst Different Countries

  33. PEST Analysis Economic • Variation in Exchange Rates • European Markets Showing Slow Signs of Economic Recovery • Brazilian & Mexican Economies Doing Well • Russia Currently In Economic Trouble • Potential for customers in Emerging Markets to require financing • Characterization of the Global Economic Environment is Uncertain

  34. PEST Analysis Economic • United States Coming out of Economic Recession • Large Enterprise Companies Have Begun Spending Money On IT Again • Predictions for Computer Hardware and Technology Sales Rising and Having Strong Demand Over Next Two Years • Manufacturing Costs Vary in Different Areas

  35. PEST Analysis Social • Shift in Business Technology To Consumerization • Idea that gadgetry sells well when it is pleasurable, affordable, and easy to use. • Consumers are using more Mobile Devices

  36. PEST Analysis Technological • Demand for Cloud Computing is Expected To See Strong Growth Over The Next Few Years • Demand For Video Collaboration (i.e. video conferencing) Is Continually Increasing • Expanding Demand for Networking Products

  37. PEST Analysis Technological • Routing and Switching Business Has The Potential to Easily Stagnate • Increasing Demand for Integration Among Technological Gadgets • Rapid Technological Changes are Transforming The Data Center Into a Virtualized Environment • Cloud & Virtualization Storage Areas Are Relatively Easy To Produce

  38. PEST Analysis

  39. PEST Analysis

  40. PEST Analysis

  41. PEST Analysis

  42. Industry Analysis

  43. Industry • Cisco operates in the communications and technology industry. • Cisco has recently increased their teleconferencing capabilities. • Due to businesses increasing the amount of virtual meetings they’re having. • This requires an increase in network capacity (i.e. traditional networking equipment – routers & switches).

  44. Relevant Industry Routers & Switches Scope of Products & Services • Sold to consumers, small businesses, government, and large enterprises • Large enterprises are their main consumer

  45. Relevant Industry Routers & Switches Geographic Scope • Global Company – operating in many different countries • Competition is also global

  46. Porter’s Five Forces

  47. Porter’s Five Forces

  48. Threat of Entry Based on this information, I’ve been able to determine that the threat of entry into this industry is High/Strong.

  49. Bargaining Power of Suppliers • The bargaining power of suppliers for Cisco is low. • This is a result of being a part of the technology industry, which results in a large number of suppliers to select from. • Although Cisco is very dependent on their suppliers for a majority of their components, it would be fairly easy for them to switch suppliers if the need ever arose.

  50. Bargaining Power of Buyers Based off the information from the table above, you can see that the bargaining power of buyers is overall a weak threat for Cisco.

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