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"Strategic Acquisitions and Accelerated Integration of those Acquisitions are a Vital

Capability of Cisco System"

Kenneth Santos

Florida National University

4/8/2021

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Strategic Acquisitions and Accelerated Integration of those Acquisitions are a Vital

Capability of Cisco System"

Drivers of Cisco's Acquisitions Reasons

Acquisitionstrategies are a course of action that enables Cisco to focus on new

opportunities and expand its products and services. The primary reason behind Cisco acquisitions

is to gain market power. The components or Cisco structures were to overpower its resilience on

progressions and focus on new venturing into new business opportunities. Acquiring a genuinely

competitive edgeis anotherreason behind the drivers of Cisco's acquisitions. By employing

procurement strategies, Cisco expected todominate over its major competitors'firms (Hitt, 2017)

Horizontal and vertical acquisitions

A horizontal acquisitionrevolves around certain items and the administrations of such

things or similar areas. Conversely,a vertical acquisition technic has the objective of focusing on

various items and administrations. The vertical acquisition technique is certainly viable for

Cisco, considering that the company maxim is to venture into obscure business areas with

inventive developments. Applying a vertical acquisition strategy will help the company

orchestrate various mechanical outcomes and meet both the market and its changing needs. Since

the company is focused on dominating information organization markets, utilizing the vertical

acquisitions strategy compromises the company to accentuate their progressions fortitude

(Markovska, 2021)

John Chambers' View Concerning Acquisitions

Although it is difficult to execute, John Chamber stipulates thatdisregarding the acquiring

technique is the best model to employ in the overall global markets. Chamber states that about 90

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percent of acquisition strategies fail in the execution stage. As a result, he focused on

establishing better acquisition strategies for procuring Cisco systems. The firm's procurements

activities were only based on specific business requirements, allowing Cisco to grow, identify

and venture into new development areas. This strategy has enabledthe firm to communicate its

intentions and focus on controlling specific markets. Moreover, the approach predisposed the

firm to an opportunity of a wide range of assets, enabling it to continue with its business

operationsas well as enhance proficiency in developing new items and administrations (Hitt,

2017).

Cisco Core Plan

Cisco's central objective is to control a procured company's amalgamation into its

objectives of venturing into new areas of ferret business innovations. The acquisition plan is

based on certain merits, including acceptable monetary terms and conditions and a massive

clientele base. There are, however, some limitations that the firm's management should consider

focusing on before implementing a theoretical methodology. A major shortcoming for Cisco is

that there are limited countries with suitable and capacity organizing markets despite its

incorporation in such countries. With the lack of an organized market capacity, the foreign firm is

in part powerless in such areas, making it difficult for Cisco to possess a significant percentage

of such countries' markets. Therefore, Cisco take control of the quality of its products and

services with regard to developments, focusing on new business opportunities (Hitt, 2017)

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References

Hitt, M. A. (2017). Strategic management: Competitiveness & globalization: Concepts and

cases.New york: Cengage learning.

\Markovska, M. (n.d.). Horizontal vs. vertical acquisition: Know the difference. Retrieved April

04,2021, from https://blog.careerminds.com/horizontal-vs.-vertical-acquisition

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