Cisco Systems is the largest networking company in the world and the premier leader in the switches and router market. Cisco achieved huge success by deploying a growth strategy through acquisitions, which earned it one of the most successful companies to have emerged from Silicon Valley in several years. Cisco Systems was founded in 1984 by Sandra Lerner and Leonard Bosack, two Stanford University computer scientists. Cisco Systems played a leading role in the internet revolution and under the visionary leadership of John Chambers, its CEO from 2005 to 2015, Cisco achieved tremendous success, such as earning the status of the world’s most valuable company, reaching a market capitalization that exceeding $500 billion, and sales volumes exceeding $18 billion in 2001. The telecom and dot-com crash of April 2001, coupled with frustration among Cisco’s resellers led Cisco System’s management to completely review its go-to-market strategy.
Cisco was able to achieve tremendous growth and success by cutting costs, improving efficiency in all aspects of their business by pursuing a value-based channel strategy. Cisco initially started with direct channels
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The “value-added reseller pyramid” model was based on Cisco hardware sales volumes and other requirements. The various categories Gold, Silver and Premier were awarded to certified resellers as they met various goals. The core concept of the model is higher sales, greater discount, and increased profit margins. This model helped Cisco to quickly increase market share in the switch and router market. The recommended model to be adopted by Cisco will be based on the overall current market situation and trend. The model will have to fit into Cisco overall objective and visions in been the premier leader in router, switches, and telecommunication
The diversification lowered the overall risk of the firm and created an information network among the divisions, which was critical for the company to gain competitive advantage. The loyal customer base was another strength. The $60 billion assets that under the company’s management provided the company a positive brand image and made it easier for the company to attract new customers. Weakness:
Over the past 51 years of the company they have acquired quite a few acquisitions which have led to their huge growth over the decades. CVS Health’s most recent acquisition was Navarro Discount Pharmacies based in Miami. Another strategy they use in the innovative feature which is meant to distinguish them from their competitors. Being innovative is done by creating new features that make things easier for the customers. The two strategies mentioned above are the ways that CVS plans to get ahead and steal customers away from their
The company has been operating fine for years and total dollar sales have been increasing each year. If the company sticks to the status quo, they will continue to stay profitable. 2. Increase brand awareness
It is widely recognized by the customers for introducing a variety of innovative and high-quality products to the market while the competitors could not do the same. “During this period of time, the company grew at a very fast rate and expanded its market to Europe, Asia, and Latin America” (dynacorp case study). However, Dynacorp’s glory did not last long. The company started to face many problems while its competitors began to close the technology gap and gained back the
The adoption of new technologies and trends is being facilitated in the industry for the competition and the customer’s overall experience. Many suppliers that are having similar strategies face a strong competition. The barriers for exiting the markets are high. Products and services of are undifferentiated leading the customer to focus on the prices offered. Low market growth, so it can be increased only by taking another firm’s market share.
A-Four support activities: 1- firm infrastructure and finance : -Strong brand, product, marketplace solution, delivery and support. (brand value from 35$ in 1973 to 10.7 billion in 2014 ). -Empowerment of top management –geographic structure. -Low debt, short term debt 2.9 billion, and long term debt 1.1 billion. Cash in hand 2.2 billion.
What are the two types of core competencies that drive a firm’s competitive advantage? Which firms demonstrate a clear competitive advantage because of (a) major value-creating skills/core capabilities and/or (b) superior assets or resources? Which firms have demonstrated sustainable sources of competitive advantage? The two core competencies that drive a firm’s competitive advantage are cost leadership and differentiation.
1. What factors in the WorldCom case support the conclusion that CEO Bernie Ebbers Knew about the financial statement fraud? What factors support his defense that he did not know about the fraud? Bernie Ebbers Knew about the financial statement fraud because he was the one who encourage others to go into financial fraud because of the stock prices were going down, which was affecting his marginal loan. For that reason, he was trying to sell his stock, but the board of Directors lent him $341 million, along with 2% interest rate.
Two firms doing similar business in the same industry are Vodafone and Etisalat. Question 1: Structure of the Organization Vodafone: Vodafone first entered the Egyptian telecom market in 1998. Through a series of mergers and acquisitions, in 2011 Vodafone has grown to become the leading mobile operator in Egypt serving more than 36.3 million customers with the highest technology, customer service and communication skills.
Executive Summary Apple has always surprised the world with its innovation starting from the invention of computer circuit board of Apple I in 1976 to world’s most successful personal computer and electronic device manufacturer. They brought revolutionary changes in user experiences in using personal computers and currently smart devices. The company was always under the supervision of visionary leaders and effective strategies applied by them made the Apple what it is today. The company faced several ups and downs during its operating timeline and remained successful in sustaining their position in the market as a leader. The Harvard Business School Case study of Apple Inc. focuses on the growth and strategic management of the company accordingly.
It would aim at establishing a strong customer lifetime value. It would also search for new markets in other
Competitive rivalry The brand name for Cisco is very strong however competitive rivalry is high. Competitors such as Juniper, who would be their biggest competitor, would need to have a very strong brand name and be known much more than Cisco. Juniper being the main rival for cisco. Took 1/3 of
The company’s products and services include the infamous iPod, iPad, iPhone, Mac, and Apple TV. Apple has a collection of consumer software appliances, various operating systems, and a variety of other services. (apple.com, 2014). Within this research paper, we will discuss Apple’s internal and external reports along with factual examples to support the reasoning provided. Introduction Apple Inc. is an American international association headquartered in Cupertino, California.
The companies in today industry serve a huge competitiveness. Current competitors take advantage of the demands from consumers to earn high profit margins. Fendi is known as a rich brand heritage and is the first global group in luxury product. They are widely recognized for its leathers, furs, watches and bags.
Maxis reputation has been built around their quality network and superior customer service. Due to high standards and expectations that come with the Maxis brand it is not without reason that customers are more demanding of Maxis. As a result, Maxis always think that their business on being the customer 's first choice. Capital requirement usually build up a firm which is the high capability to compete in the industry. However, telecommunication is a high competitive industry in order to gain large market share.