Cisco Systems, Inc. is a multinational technology company that designs, manufactures, and sells networking equipment. In the early 1990s, Cisco was facing intense competition in the networking industry and needed to find a way to maintain its market leadership. In this case study, we will explore the challenges Cisco faced and the strategies it used to overcome them.
One of the main challenges Cisco faced was the rapid pace of technological change in the networking industry. As new technologies emerged, Cisco had to constantly innovate in order to stay ahead of the competition. This required the company to invest heavily in research and development, which put pressure on its bottom line.
To address this challenge, Cisco implemented several strategies. First, it focused on developing new products that incorporated the latest technologies. For example, the company introduced the Cisco 2500 series router, which was designed to support the emerging trend of telecommuting. This allowed Cisco to capture a share of the growing market for remote access solutions.
Second, Cisco invested in partnerships and acquisitions to bring new technologies and expertise into the company. For example, the company acquired Crescendo Communications, a leading provider of ATM networking solutions, and formed partnerships with other technology firms such as IBM and Microsoft. These partnerships allowed Cisco to access new markets and expand its product offerings.
Finally, Cisco worked to build strong relationships with its customers and partners. The company established a network of channel partners, who helped to market and sell Cisco products, and provided excellent customer service to ensure customer satisfaction.
Overall, Cisco's strategies were successful in helping the company maintain its market leadership and stay ahead of the competition. By investing in research and development, building partnerships and acquisitions, and developing strong customer relationships, Cisco was able to adapt to the changing market and continue to grow.