1) Phase I (1996 - 1998) - faced an aggressive set of buyers who focused on the best technolgy, CIENA bet on the

emerging DWDM technology to dramatically transform the economics of telecom networks built by service provider. Phase II (1998-2000) - competitors caught up and the margins on its long-haul DWDM transport product dropped, the company used its execution and acquisition capabilities to re-create a lead in the switching market. This execution enabled CIENA to remain competitive in the switching market. The strategy of this phase was "External acquisition of technologies and spotless execution to deliver new products". Phase III (2000-2002) - carriers were straining under heavy debt and had shifted their focus from building new networks to maintaining and optimizing their existing ones. Therefore, the carriers then became focused on solutions that helped reduce the costs of operating their networks. The stretagy then was to focused on hiring experienced executives with deep relationships among carriers, to shorten sales cycles and atract new customers. 2) - In 2002, the total telecome spending fell to an estimated $53 billion from $92 billion in 2000. This changed the entire business line for CIENA caused by the revenues fall with the optical equipment. - equipment vendors competed for customers, and existing relationships became an advantage. Because customers were concerns with ongoing upgrades, maintenance, and support, they remained with familiar or established vendors. CIENA's marketing and sales efforts had been more focused on the engineers and the technical personnel. As a result, these efforts were less familiar to business decision makers. - CIENA was also facing a depressed telecommunications marketplace characterized by a shrinking customer set, a dramatic decrease in spending, and fierce competition. - CIENA faced the new challenge of delivering integrated services instead of individual systems. 3) a) Continue acquisition and execute new products to the market. b) Concentrate on solutions to reduce costs of operating customer network

4) CIENA should concentrate on finding or developing products that help network/wireless company to lower their cost and improve product efficiency.