Cisco Systems Inc SWOT Analysis

In February 1990, after approaching nearly eighty venture capitalists, Cisco went public. Soon after, seven of the upper management vice presidents went to John Morgridge, the company’s new president and CEO, and gave an ultimatum: either Lerner left or they would leave. So on August 28th, Sandra Lerner was asked to leave the company. Right afterwards Bosack quit. In 1994, Cisco introduced the “Cisco Connection online” which customers could find out anything regarding their products,

As stated earlier, Cisco’s primary goal is to help its customer. In doing this Cisco is attempting to achieve superior customer responsiveness. Cisco is placing great weight on not only identifying, but also responding to and satisfying the needs of its customers. As an example of Cisco’s responsiveness to its customers, the company recently reorganized its engineering department by technology groups versus the line of business focus. This organization more closely matches how Cisco’s customers are now making business decisions. As a result Cisco is able to more effectively focus on particular customer segments and respond to new desires. The focus on customer responsiveness at Cisco also considers customer response time. For example, the aforementioned high quality engineering crew has helped Cisco bring products to the market quickly.

Recently, the downturn of the technology sector has resulted in reduced sales. During this period Cisco may sell off those products that are borderline obsolete or non-innovative. Furthermore, it may prove beneficial to further research ways of reducing operating costs and increasing efficiency during this “slump” until the market stabilizes.

Cisco’s history within the industry as well as its engineering knowledge and talent are strengths that can be used to combat the rapid expansion of the technologies on the market. Cisco has a history of acquiring companies and places great value in its employees. As a result Cisco could seek to acquire new companies and use their existing values to successfully integrate these new companies. Cisco may also choose to more heavily utilize their history in the industry and engineering knowledge to develop new improved products in order to satisfying the increased needs of customers and to combat fierce competition.

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