Marketing Case Study - Cisco

Executive Summary

The purpose of this case report is to analyze Cisco Systems in terms of its successful factors and current issues. The paper will discuss the current market situation, including a S.W.O.T. analysis (strengths, weaknesses, opportunities, threats) as well as some overall objectives and issues regarding to Cisco products. It also comments the implications of the problems in terms of management, the marketing mix, and competition in further detail.

Formulation and evaluation of alternatives are then described in detail including listing both advantages and disadvantages for each issue. The most viable alternative is finally selected. In conclusion, Cisco is advised to keep focus on both markets in China and India. Also, a brief implementation plan is provided for further actions. Cisco will be able to gain market share and to maintain its market position as the innovative leader in the network equipment industry.

1.0 Current Background

The power of computer network infrastructure has been fueled by both higher bandwidth and faster speed of data transport in the last decade. With rapid and sustainable economic growth in the developing countries, more world class I.T. firms have expanded business and marketing plans both China and India. Cisco Systems, a leader in routers and switches industry, has also been involved in these two countries and is chosen to be analyzed in terms of strategic marketing and marketing planning for this case study report. By doing a series of analysis management can foresee possible positive and negative future developments and develop a contingency plan for such events.

2.0 Case Issues

Although Cisco is namely the top three network equipment supplier over the world, it also has vulnerable marketing circumstance when exploring new markets in the developing countries. Uncertain government policy and favoured domestic rival cause Cisco’s market share to drop dramatically in China. Cisco’s senior marketing executives are experiencing an immediate issue in whether to shift its focus to India or not. This SWOT analysis will outline major strengths and weaknesses, as well as several threats and opportunities faced by Cisco. A summary of SWOT analysis is shown as follows.

Strengths

• World Class Pioneer

• Diversified Products

• After-sale Support

• Certified Training Program Weaknesses

• Uncompetitive Price

• Few Distributor and Integrator in China

Opportunities

• Expandable Market in India Threats

• Uncertain 3G Wireless Plan in China

• Favored Domestic Rivals in China

• Intellectual Property Right in China

3. Analysis of the Case

“Nowadays China has established itself with $1.6 trillion economy at annual growth rate of 9 percent, whereas India is still catching up with $700 billion economy at annual growth rate of 7 percent.”[1] Both China and India are the two biggest developing countries in the 21st century. As Cisco is considering in shifting its focus to India in term of geographic segmentation, there are unavoidable contradictions whether to leave too much business in China or to vitalize both markets with limited resources. In China, there are three issues have been identified from this case study: Uncertainty in 3G wireless plan, Favored domestic rivals, and Intellectual property right.

First of all, there is an uncertainty whether 3G wireless network to be implemented in China. “In 1999, the International Telecommunication Union approved an industrial standard for third-generation (3G) wireless, including three operating modes based on CDMA technology. These 3G CDMA modes are most commonly known as CDMA2000, WCDMA, and TD-SCDMA.” [2] Almost nine years later, all wireless carriers concurrently have not yet decided to provide which one of the three 3G CDMA modes in China. “3G wireless network is going to be about services which are new and, in many cases, yet to be designed. At the same time, it will involve services which can also be