Marketing Strategy: China
Cisco entered China in 1994 and formally established Cisco systems (China) network technology co., LTD. in Beijing. On January 13, 2005, Cisco purchased 13.86 million shares of common stock of SNDA which was about 9.7% shares of SNDA. In October 2005, Cisco (China) research and development center was opened in Shanghai and invested $32 million dollars in five years to improve market development and product customization capabilities in China and globally. Cisco registered and founded Cisco systems (China) information technology service co., LTD. in Beijing in February 2006 which developed customer service market independently in the Chinese market (Liang, R. 2013).
On December 14, 2006, Cisco invested $50 million in China communications services, one of the biggest overseas strategic investors of China communications services. After becoming a shareholder of China communications services, Cisco and China communications services managed telecommunications services and new network solutions for China enterprises including IP infrastructure, digital video, 3G platform and its application. In November 2006, Cisco (China) Financing Lease Co. Ltd was established in Beijing and became the first network equipment company of China to provide long-term financing lease finance solutions for customers (Liang, R. 2013).
In February 2001, Cisco cooperated with Japan's Softbank to establish SAIF which invested in China markets. Cisco has invested $700 million in China in about five years, including the published SNDA, China communications services, Wind nets, MingWan, Anbo and almost other 40 companies. Besides SAIF investment, Cisco has also invested in eight companies; income from these companies is about $900 million a year (Liang, R. 2013).
Between 2005and 2006, Cisco began to increase investment in China and established independent service company, financial leasing company and invested in China's most valuable Internet companies because, Cisco realized the brilliant future of China's Internet market. By 2006 Cisco (China) had sold Internet equipments in mainland of China (excluding Hong Kong, Taiwan and Macao) which were worth $80022 about RMB 6.00165 billion, which didn't include the service products sales (Liang, R. 2013).
Cisco utilized the five layers of marketing channel strategy for China. Kotler defined the construction of marketing channels as establishing and targeting efficiency, control and the ability to adapt for different target market....