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Swot Cisco

This document analyzes Cisco's strengths, weaknesses, opportunities, and threats (SWOT) through a SWOT analysis. It identifies Cisco's main strengths as its strong brand value, position as a technology leader, strong financial performance, and large market share in key areas. Weaknesses include delays in orders and a declining storage networking market. Opportunities exist in growing areas like cloud computing, software markets, and cloud security. Main threats are intense competition, volatile markets, and potential litigation issues.

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Varun yashu
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103 views

Swot Cisco

This document analyzes Cisco's strengths, weaknesses, opportunities, and threats (SWOT) through a SWOT analysis. It identifies Cisco's main strengths as its strong brand value, position as a technology leader, strong financial performance, and large market share in key areas. Weaknesses include delays in orders and a declining storage networking market. Opportunities exist in growing areas like cloud computing, software markets, and cloud security. Main threats are intense competition, volatile markets, and potential litigation issues.

Uploaded by

Varun yashu
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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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 
 Brand Value: Cisco has been ranked at 52  according to Brand Finance. Its brand
nd

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


 Delays in orders: Although their products are of high quality and deliver to the
expectations of the clients, Cisco has a major issue with its supply chain. They have
suffered component shortage, delay in the orders shipping.

 Declining storage networking market


  Weak presence in BPO technologies/markets compared to global leaders

3.3  Opportunities in the SWOT Analysis of Cisco :

 Growth in cloud computing: According to Cisco Global Cloud Index, the annual


global cloud traffic is forecasted to quadruple from 2.1 to 8.6 zettabytes (ZB) by
2019. Global data centre traffic is also forecasted to triple from 3.4 to 10.4 ZB by
2019. Cloud is expected to account for more than 83% of the total data centre traffic
by 2019. The strong presence of Cisco in this sector will catapult its revenues and
profits.
 Growth in the Software market: The software-defined networking (SDN) and
network function virtualization (NFV) market are expected to grow at a CAGR of
over 86% during 2015-20 periods to reach a value of approximately $45 billion.
 Growth in Cloud Security: With the growth in cloud computing it is pretty obvious
that cloud security will also grow. Global cloud security solutions market is expected
to witness growth of over 13% during 2014-22, to reach around $12 billion by 2022.

3.4  Threats in SWOT Analysis of Cisco

 Competition: Cisco is facing an intense competition from Alcatel-Lucent;


AmazonWeb Services; Arista Networks; ARRIS Group; Avaya; Blue Jeans
Networks; Brocade Communications; Check Point Software Technologies; Citrix
Systems; Dell; LM Ericsson; Extreme Networks; F5 Networks;FireEye; Fortinet; HP;
Huawei Technologies; IBM; Juniper Networks; Microsoft; Motorola Solutions;
PaloAlto Networks; Polycom; Riverbed Technology; Ruckus Wireless; Symantec;
Ubiquiti Networks; andVMware.
 Volatile Market: The sales in the field of data centre, service providers, router sales
and sales of new products experience volatility and is not consistent with every
quarter. This can be attributed to the changing economic and business conditions of
all the countries they do business with.
 Litigations: Cisco is in trouble with the Brazilian federal tax authorities. The
authorities have claimed an evasion of approx. $262 million, $1.1 billion for interest
and $1.2 billion for other penalties. This kind of unlawful activities harms the
company’s brand image.

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