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Cisco’s Operations And Strategies In Foreign Markets

1382 words - 6 pages

Cisco incorporated has grown significantly over the years, since its inception and has established itself as the number one technology company throughout the industry. Initially, Cisco started as manufacturers of modems and routers, and has expanded its scope over the years. This paper will attempt to address Cisco’s operations and strategies in foreign markets it will also delve into the strengths, weaknesses and threats in the political, legal and economic environment in which it operates.
Cisco incorporated operates in geographic regions of the Americas, Asia, and Europe, Africa, and the Middle East. Bateman and Snell (2011) postulates that the geographic arrangement helps the company to place its people close to its customers so there is a clear path to the communication process. Operating in strategically knit areas has its advantages of positioning products and services to customers so they can target a larger client base. Unlike other companies that use a more concentrated market, Cisco has a more direct approach in terms of advertising one-on-one analysis with an employee.
Cisco is a multinational corporation with its headquarters located in San Jose, California. Currently it designs, manufactures, and sells networking equipment which is used throughout the world especially in industries that heavily rely on networking and internet technologies to satisfy the service needs of its customers.
Leonard Bosack and Sandy Lerner founded Cisco Systems Incorporated in 1984, while at Stanford University. Since that time the company has gone through several major changes. Many of which helped to catapult Cisco to the level it currently is today. Cisco was previously known for its Internet and Silicon intelligence, which attracted many earlier enthusiast to this company and is the reason behind its many successes achieved to date. The early twentieth century saw the growth of the internet; at its peak and several companies including Cisco changed the way they conduct business. Cisco seized the opportunity by using the internet as a major platform to increase its product lines and increase market share. During this period the demand for modems and wireless routers increased significantly leaving little room for its nearby competitors to mount a challenge. As a result Cisco became the most valuable company in the world, with a market capitalization of more than US$500 billion in 2000 (Cisco Systems WYGU, 2012). Even though Cisco has proven itself as superior to many in the industry it continues to have major rivalries from companies such as Alcatel-Lucent, Juniper Networks .

Cisco’s Organization initially had three customer types, large corporations, small businesses and telecom service providers. Throughout the organization engineers and sales personnel were organized into groups that concentrate on one type of customer, such as telecom service providers. The new structure reorganizes the company around technology groups...

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