Cisco Systems Managing the Go to Market Evolution Essay

2473 Words Dec 28th, 2012 10 Pages
Cisco Systems
Managing The Go To Market Evolution
Cisco Systems
Managing The Go To Market Evolution

Analysis
Company background (Cisco Systems):
Cisco Systems is a world leading company in the switches and router market. Established in 1984 by a Stanford University couple, IT administrators Len Bosack and Sandy Lerner. Ina short period after founding, it became one of the most successful companies in high technology industry. In Cisco, manufacturing of its switches and router was outsourced, the company focused on core competencies: product design and development. Indirect sales and distribution through resellers became the major sales channel in the end of 1990’s; its “Value-Added Reseller” (VAR) was the most successful indirect
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Core corporate networking gear market, it was severed for both enterprise accounts and small- and medium-business (SMB) accounts. Secondly, Telecommunication service providers. Cisco provided hardware devices and technical supports to telecommunication service providers. Thirdly, Consumer markets. After acquisition of Linskys, Cisco entered this home networking market.
Issues:
Before the dot-com bubble collapsed, Cisco was a conglomerate that achieved growth less through expanding marketing channels, and more through M&A. This was the industry standard of the time, because the market had a limited room to expand during the dot-com bubble. In the case, Cisco is shown to be a company that achieved a lot of cost cutting and streamlining at the end of the dot-com bubble. Much of this was accomplished through disciplined operations rationalization on many fronts. Cisco, which had agglomerated more than 75 firms since it’s founding, virtually halted its aggressive M&A. The main issue of note in this case is how Cisco, after surviving the dot-com boom and crash that ruined so many of its competitors, can maintain competitive advantage as a streamlined and still-expanding company. With the collapse of the dot-com market and related shrinkage in the high-tech industry, Cisco took a dip in its sales and profits in 2001. Coming back from the recession, Cisco had to manage and evolve its go-to-market strategy and design in keeping with

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