Cisco Business Model

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John T. Chambers
Chairman & CEO, Cisco Systems

John Thomas Chambers born August 23, 1949 is the executive chairman and former CEO of Cisco Systems .Chambers was born in Cleveland
He holds a Bachelor of Science / Bachelor of Arts degree in business and a law degree from West Virginia University and a master of business administration degree in finance and management from Kelley School of Business, Indiana University. Previously, he also attended the School of Engineering at Duke University from 1967 to 1968.
After obtaining his MBA, Chambers began his career in technology sales at IBM 1976–1983 when he was 27 years old. In 1983, when he was 34 years old he moved to Wang Laboratories. There, he became the vice president of U.S. Operations
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When observers speak about a new, progressive business model for a new era, they inevitably put Cisco at, or near the top of their list.
Under Chambers, Cisco has emerged into a dominant player in the global networking industry. He led Cisco's successful diversification into the switches , routers , datacom and telecom equipment business. Chambers visualized Cisco as either the market leader, or in the second position, in every product market it entered.
By the end of 1999, Cisco was the market leader in 80% of its product markets, while in the remaining 20%, it was a close second. Chambers played a major role in strengthening the sales and marketing efforts of Cisco. He had a vision of transforming Cisco into an e-company .
He formulated several innovative programs to recruit and retain best human resources available in the IT industry. Chambers also developed a customer-oriented and performance-driven, yet informal culture at Cisco. Under Chambers, during the period 1995 to 2002, the revenues of Cisco rose by 15 times from $1.2 billion to $18.91 billion .
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For quite some time telecom and network companies had been overvalued; when the market finally turned against them, many analysts predicted a hard road for Cisco. Cisco at first seemed to ride above the fray, announcing its 14th consecutive very strong quarter in August 2000. But in early 2001 the fallout hit; Chambers responded by firing 15 percent of his workforce and cutting his own salary to $1 a year. Chambers stayed the course, continuing with what had worked for him in the past: acquisitions. Cisco acquired Linskys in 2003 for $500 million worth of stock; in 2004 it acquired Latitude Communications, a company that specialized in conferencing systems, for $80 million in cash. Chambers surprised many by leading Cisco to a stronger position than ever, though he cautioned that another tech boom in Silicon Valley might never materialize.
With a rebounded Cisco looking healthy in 2004, Chambers was able to look back at a life filled mostly with success. Asked by the San Francisco Chronicle if his wealth and fame would make him a different person, Chambers replied, "I hope that it does not. Most of my friends would say it does not. My friends that I had when I moved here to Silicon Valley are still my best friends. It didn't change dramatically. The most important thing to me in my life is my family. Money's never been a primary motivator in my

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