Marketing and Operations Management
2009 December 1st
Assignment 1 (First Semester)
Mass Collaboration, Virtual Communities, Web2.0 and Telepresence are a few buzz words that follow the new tag line - "welcome to the human network: changing the way we work, live, play and learn" - from one of the world's biggest networking dominators, Cisco Systems, Inc. Its CEO's statement, by the end of (once again) a thriving Q1 FY2010 "Cisco's strategy is based on catching market transitions-the market transitions that affect our customers", may also imply that the company is confidently leading the market while driving its customers' future needs.Company overviewIn 1984 two Stanford University students, Sandra Lerner and Leonard Bosack managed to overcome the limitations of data communication between different computer networks at the university by inventing a router - a special network device that connects different networks with different network protocols. Later joined by Richard Troiano, they founded Cisco Systems, and their new product was the basis for Cisco's business, which was a true technology start-up. Though Cisco was not the first company to develop and sell routers, they happen to be the first to sell with a commercial success. The company developed in the meantime into a mature business and into the world market leader in networking and Internet equipment. The company headquarters resides in San Jose, California, USA and at present it has 65,545 employees worldwide. (Cisco Systems Corporate Overview, 2009)Cisco Systems, Inc. designs, manufactures and sells Internet protocol (IP)-based networking and other products related to the communications and IT industry, and provides services associated with these products and their use. These products are installed at enterprise businesses, public institutions, telecommunications companies, commercial businesses and personal residences. (Reuters, 2009)John T. Chambers is Chairman of the Board and CEO of Cisco Systems, Inc. since January 1995. When he assumed the role of CEO, the company has grown from $1.2 billion in annual revenues to $39.5 billion by 2008. (Cisco Systems Fact Sheet, 2009)The marketThe market is represented by the key players - who are the producers of communication equipment (namely Alcatel-Lucent, Avaya Inc., Brocade Communications Systems Inc., Check Point Software Technologies Ltd., Cisco Inc., F5 Networks Inc., Huawei Technologies Co. Ltd., Juniper Networks, LM Ericsson, and Motorola being few of them), the manufacturers - considered to be the suppliers, and finally the end user buyers. The global communications equipment market reached a value of $51.5 billion by year 2008. Estimations show a steady growth rate in the market, with no changes in the trends. (Datamonitor GCE profile, 2009)Other than the major players in the market, who drives the advancements in the technologies, the threat of...