Cisco Systems Case Study

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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 …show more content…

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

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