Cisco Case Study

Case questions to prepare

Cisco

What do you think is key to Cisco’s growth/corporate development strategy?

• Cisco always tries to adept to the new environment and to keep supplied with the new resources and customer-oriented solutions
• Carefully evaluates sourcing options
• Uses internal but also external resources in order to stay competitive
• Acquisitions often fail, but Cisco knows how to perform good
• Is willing to grow outside of its core business
• Uses all strategies, Buy, Build and borrow
• “Alliance life cycle” --> always provides information about changes in order to adjust the commitment, helps to find out whether it fits to the current strategy
• contracts --> ensures safety and regulations

Do you believe it is sustainable? Or should they make some adjustments?

• Sustainable
• Have all three categories for resources
• Always try to keep up to date (Crowd-sourcing)

Dell

What was Dell’s growth strategy?

• Dell only focused on buying, not on any other strategies like alliances
• Did many acquisitions at a short time period (more than 24 deals since 2006)

How did they use Build, Borrow and Buy and did they use it appropriately? What did they do well and what did they do wrong in your opinion?

• Well: they have recognized that they need to have a different strategy like buy in order to keep on track with the changing environment, they have realized that it is not possible to only use internal resources and that it is necessary to have some other markets
• Wrong: only used one strategy, did not pay attention to the process, did it too quickly, should have focused on alliances before doing all acquisitions

Search for an update on Dell and determine whether they adjusted their strategy over the last few years and how they are performing now. 

• After 2013, divesting a lot
• According to acquisitions, they start focusing

What are the main differences between Cisco and Dell’s strategy for growth and what do you believe caused these differences?