1.
SWOT ANALYSIS OF CISCO
Cisco Systems Inc. operates in the telecom infrastructure sector. It designs,
manufactures and sells internet protocols, network-based infrastructure and products related
to IT and communications. It
is headquartered in California, USA. It has operations in
America, Europe and Asia Pacific.
The Cisco is one of the leading organizatations in its industry. Cisco maintains its
prominent position in market by carefully analyzing and reviewing the SWOT analysis.
SWOT analysis a highly interactive process and requires effective coordination among
various departments within the organization such as – marketing, finance, operations,
management information systems and strategic planning.
The SWOT Analysis framework facilitates an organization to identify the internal
strategic factors such as -strengths and weaknesses, & external strategic factors such as -
opportunities and threats. It leads to a 2X2 matrix – also known as SWOT Matrix.
The Strengths-Weaknesses-Opportunities-Threats (SWOT) Analysis / Matrix helps the
managers of the Cisco to develop four types of strategies:
SO (strengths-opportunities) Strategies
WO (weaknesses-opportunities) Strategies
ST (strengths-threats) Strategies
WT (weaknesses-threats) Strategies
1.
Strengths in the SWOT Analysis of Cisco
B
rand
Value
:
Cisco has been ranked at 52
nd
according to Brand Finance. Its brand
value is $19.162 billion.
Technology
Leader:
The company has established itself as the technology leader. It
has created and designed technologies which focus mainly on high-growth markets.
Cisco has acquired many small companies which helped it to venture into smaller
markets much before than its competitors. During 2015 alone Cisco made 11
acquisitions.
Strong Financials:
Cisco recorded revenues of $49.161 billion during FY 2015 with
an increase of 4.3% over FY 2014. The profits of Cisco also rose by 14.4% to $8.981
billion in the FY 2015.
Market Leader:
Cisco holds the market leader category in almost all of the market it
operates. Cisco has 59.9% market share in the Ethernet switching market, 56% market
share in switching and router market; 42.6% share of the market for enterprise video
conferencing equipment; and 47.4% market share for wireless LAN products. In
addition, the company had a market share of over 9% in the enterprise security
market. This gives them a huge edge over its competitors in this sector.
High Growth Potential:
Many things are changing in the technology sector. With the
increase in data and internet presence the demand for data centers, cloud computing,
high-speed wireless devices are going to increase substantially. Cisco has significant
presence in these sectors and is expected to capture the market with its high quality
products. Cisco’s wireless product segment increased by 10.9% in FY2015
.
3.2 Weaknesses in the SWOT Analysis of Cisco
