Cisco Systems Case Study

COMPANY PROFILE

Cisco Systems is one of the largest network communications company in the world. Cisco provides networking solutions that customers use to build a integrated information infrastructure of their own, or to connect to someone else’s network. Cisco also offers an extensive range of hardware products used to form information networks, or to give them access to these networks. Cisco also has it’s own software called IOS software, which provides network services and enables networked applications. Cisco serves customers in a wide range of businesses, such as corporations, government agencies, utilities, and educational institutes, and small to medium size businesses. Cisco sells it’s products worldwide. They serve as many as 115 different countries. They have more than 225 sales and support offices in 75 countries. Cisco strongly believes in the advantages of a global networked business. By using networked applications over the internet and it’s own internal network, Cisco is gaining financial contribution of at least $825 million a year in operating costs savings and revenue enhancements. Today, Cisco is the largest commerce site, with 87% of their orders are transacted over the web.

Cisco is one of Americas greatest corporate success stories. Since shipping it’s first product in 1986, The company has grown into a global market leader that holds No.1 or No.2 market share in almost every market section in which it participates. Cisco went public in 1990 on the nasdaq stock market with annual revenues at $69 million in that year. But now their revenues are at $12.2 billion in fiscal 1999. Their revenues in the last four quarters are shown in the figure below.

QUARTERS REVENUES

Q3 (ending 4/00) $4.9 billion