Cisco Market Strategy Case Study

Over time, Cisco has developed and altered its strategy to suit the changing environments. Initially cisco has a strategy to develop the technology inhouse and be the first in the market. They aimed to grow market share by direct sales and customer focus. Due to the rapid changes in technology in the 1990’s, Cisco’s management realized the importance of keeping ahead of the curve. They soon realized that they lacked the resources to build the new technologies inhouse and began witnessing the advantages of acquiring small private companies with high potential for growth. Cisco began to make accusations a common part of the strategy going forward and this helped them develop their market share and total market valuation. As Cisco acquired companies over time, they realized the importance of partnering with the right businesses. Soon Cisco developed a plan to systemize the acquisition process. They first evaluated the company, determined the fit with the existing Cisco growth strategy and then finally integrate the business while ensuring that no personnel were laid off. Cisco strategy also focused in aspects like geography and profitability to shareholders while acquiring a new business. They rejected many companies that did not fit these qualifications.

As Cisco grew and acquired many firms, it could not focus its effort towards a single strategic goal. The entrepreneurial mindset in each department led to many duplications of products and features. Cisco realized that they needed a new strategy such that the entire firm could follow and easily implemented in a new business being acquired. They followed a new strategy to ensure that all the acquired comapanies employees are retained. The next step to was utilize the acquired business to boost Cisco products and improve its integration with Cisco products. There were many factors that required Cisco to modify its acquiring model. The company had acquired many firms in a short period of time and was