Group 10

Ajinkya Ambike
Prachi Pandey
Vandana Wadhwa
Shreshtha Shah
Vandit Shah
Malavika Pillai
 Market Analysis
Cisco operates in enterprise server market at a global level which is estimated at 9.8 Billion
USD in 2020 and is touted to expand at an annual CAGR of 7.85% forecast. In India, the IT
industry accounts for 8% of the nation’s GDP.

MARKET DRIVERS APPLICATION AREAS

Adoption of Cloud

Big Data Growth

1 IT & Telecommunication

2 BFSI
3 Manufacturing

4 Retail

5 Healthcare

6 Media & Entertainment

 Competitive Geographical
Landscape Markets
North America

Europe

Asia-Pacific

The landscape is moderately competitive as Latin America

few markets enjoy significant share and barrier
of entry is also high. Hence, the companies are
forging strategic alliances to increase
profitability and hence market share.
 Cisco Products & Services

CX
Services
Products
&
Services

SERVICES

Technology Business
Services Resiliency
Services
 Company Analysis

COMPETITIVE ADVANTAGES
CISCO STRATEGY
• Innovative products
• Online customer services
• Use of advanced technologies in product development
• Customer needs addressed quickly

STRENGTHS
• Automation of activities
• Strong distribution
network
• Strong free cash flow
• High levels of customer
satisfaction
• Product innovation
• Successful GTM
strategies for products
• Excellent performance in
new markets
WEAKNESSES
• More investment in new
technologies
• Gaps in product range
sold by the company
• Limited success outside
core business
• Investment in R&D is
below fastest growing
players in the industry
• Days inventory higher
compared to competitors
 Financial
Objectives
• Cisco's software revenue was $15 billion in fiscal 2021, accounting for 7% of the overall
revenue of $49.8 billion, making it one of the world's largest software firms. In addition,
the company has seen a 15% increase in software subscription revenue year over year.

• The Infrastructure Platforms and Services Segment generates the majority of Cisco's
revenue. Cisco's revenue fell 9.3% year over year in Q1 2021, from $13.15 billion in Q1
2020 to $11.93 billion. The COVID-19 pandemic, which mostly affected the Infrastructure
Platforms and Applications Segment, was the cause of this drop.

Revenue Trend ($B) over three years

(Source: Cisco Financial Report)

Margin (%) over three years

Cisco’s Revenue By Segment (Source : Statista)
(Source: Cisco Financial Report)
 Non- Financial
Objectives
• Cisco's brand is placed #71 on the Global Top 100 Brands
list, which is a carefully curated collection of well-known
brands as rated by Cisco customers.

• Cisco is ranked #21 in the Tech industry when compared to

other companies.

• Cisco is placed fourth among its key competitors in terms of

NPS, whereas Juniper Networks is first and Arista Networks
is second. Their current market capitalization is $242.26
billion dollars.

• With 62 percent Promoters, 22 percent

Passives, and 16 percent Detractors, Cisco's
Net Promoter Score (NPS) is 46. On a scale
of -100 to 100, the Net Promoter Score
measures whether Cisco customers would
recommend using product.
Segmentation, Targeting and Positioning

 Their products assist in the creation of a single

platform for executives and employees to
communicate with one another
 Products widely used in industries such as
information technology and services,
telecommunications, financial services, and hospitals
and health care
0 Customer Segmentation

1 Enterprise This category includes companies with 1,000 or more employees

and several sites.

02 Service Providers This category includes companies that serve businesses, utilities,
governments, and consumers with data, video, voice, and mobile
services.

03 Commercial This category includes businesses with fewer than 1,000 employees.

04
Non-private entities such as the federal, state, and municipal
Public Sector governments, as well as educational institutions. 
 Targeting
Cisco provides a wide range of networking-related products and services. As a result, a
large number of businesses rely on Cisco hardware and software on a regular basis.
Major customers include companies like NetMD, Aspire Technologies, SysGen Solutions
Group, Helix Electric, and others.

Positioning
Cisco Systems is portraying itself as a "global networking leader and tomorrow's
technological visionary." The organization understands that networking
leadership and being a technological visionary are inextricably linked.
 Value Proposition
Cisco's main value propositions are its brand/status and
accessibility.
 The company has a well-known brand, having been in
business since 1984 and employing 70,000 people in 400
offices throughout the world. It has a $129 billion market
value, making it one of the most valuable companies, and its
goods are frequently featured in films and television shows.
 The company offers its products through a variety of
channels, including direct sales, service providers, and
resellers, to make them more accessible to clients who may
have difficulties finding or purchasing them. It also caters to
a wide range of sectors with its services. 
 Marketing Strategy
• Capitalize on market transitions before
they occur
• Follows the 3 Tier strategy- Develop,
Partner or Acquire
• Grow through internal development,
acquisitions, global partnerships, and
cross-functional teamwork.
• Efforts in and knowledge of economic
development, education, government,
healthcare, national security and public
safety issues has increased customer
trust
• Closely aligned with its corporate
strategy and regular investments in its
brand positioning as
well as repositioning
• Recognizes the links that exist between
sales, engineering, security and
marketing groups.
 Marketing Strategy
• R&D capitalizes on the current market
situation followed by providing customized
business solutions
• Transitioned from a traditional silicon-based
organization to a lifecycle business model.
• Cisco comes under the product-oriented
advertiser category
• Advertising in the form of public relations,
direct marketing, internet and online
promotions
• Conducts various direct marketing campaigns
such as online shopping, cable television
infomercial
• Uses various social networking tools like
news, Twitter, Facebook, Flickr as part of its
public relations
• Follows cost-based pricing and its products
are higher priced in the global market
 Configure-to-order
The Cisco supply chain is highly diverse, extensive, and global. With more than 300 product
families, Cisco has a wide range of gear targeted at a spectrum of customers with vastly
different expectations and fulfilment requirements. Thus, Cisco products use a configure-to-
order (CTO) production model. This basically means that the products are built based on
confirmed customer orders.  

Specialization & No Extra Faster Revenue Better Customer

Customization Inventory Generation Service
Distribution Channel of Cisco
 Distribution Channel of Cisco
2-Tier Resellers
Tier-1 Partners
• Smaller clients compared to 1-Tier Partners.
• Systems integrators include global
• Sales range from a few thousand to several
players like EDS and Accenture and
million dollars
established local partners.
• Secure Cisco’s products from distributors.
• Help integrate Cisco’s products with
• Distributors hold inventory & provide
technology products from other firms
logistics value.
to provide end-user customers with
• Thousands of resellers in a particular
complete solutions.
geography, but only a few distributors.

Service Provider Partners

• Mainly telecommunications firms that supply Cisco
equipment to their customers.
• May also make customer-service agreements to secure
their customers from the management burden of
operating the equipment.
 Budgeting & Control

R&D, sales and marketing, and G&A expenses in millions (Source: Cisco Annual Report)

• Sales and marketing expenses at Cisco increased by $90 million

• Out of the total sales and marketing spends Advertising expenses were approximately $268
million, $187 million, and $204 million for fiscal 2021, 2020, and 2019, respectively
• With accelerated digital transformation Cisco will also need to upskill their partners to
increase the efficiency of the sales management process
• Investing in new initiatives serves as a good focus point for efforts to increase an
organization's agility
 Keys to Success

01 Decentralize Leaders must create an organizational culture in which priorities are clear
decision-making and decision-making is spread.

02
Improve the
The ideas that begin to yield positive results are those that necessitate immediate
mechanisms for
investment and executive support.
investing in innovation

03 Developing sense-
and-response
abilities
Money cannot be put aside to spend in anticipated priorities until you establish
the organizational ability to predict the possibilities

Instead of comparing monthly expenses to an arbitrary objective, managers

04
Devote resources
to processes should monitor the evolution of expenses and evaluate if the level of spending is
suitable on a frequent basis

05
Reduce costs in Any area that is not essential to the company's strategy and growth should be
areas unrelated to explored
strategy
Thank You