SWOT & PESTLE

ANALYIS
Cisco
Strengths
• As CISCO is one of the oldest Technology company So their BRAND IMAGE is one of their Strength

• CISCO has captured Most of the market and shows a STRONG PRESENCE in Industry of Technology

• Their NETWORK OF DISTRIBUTION is very strong and there is a minute chance of damage of the
product

• CISCO is one of the company that has a very STRONG FINANCIAL BASE which helps them in hard
times

• CISCO is very successful in DEVELOPING NEW PRODUCTS which helps them in surviving existing
markets and entering into new markets
Weakness

• CISCO face difficulty in adjusting with new company that is why their MERGERS are UNSUCESSFULL

• CISCO deliver their products in their own way thus it may cause DELAYED SHIPPING

• DAY SALE INVENTORY is higher as compared to their competitors

Opportunities

• According to a study cloud traffic has been increased by around 200% in last few years which
shows a GROWTH IN THE CLOUD SECTOR

• According to the INFLATION INDEX of US it is DECREASING in 2023 which is an amazing

opportunity for CISCO

• There is AN INCREASING TREND OF BUYING TECHNOLOGY related things dragging its demand
to inelastic which should be availed by CISCO
Threats

• Since CISCO is a Multinational company and sells its products all around the world but the laws differs from
country to country. Thus CISCO has to be very careful to avoid LEGAL PROBLEMS

• As CISCO is mostly dependent on Physical stores, the switching of world to ONLINE MARKETS would be a
threat for them
Political

• Risk of MILITARY INVASION

• INTERFERENCE OF GOVERNMENT in Networking & Communication Device Industry

• There may be some ANTI-TRUST LAWS of the country related to Networking & Communication
Device Industry

• PRICE REGULATION AND TAXATION strategy may change with the change in government

• There may be WAGE LEGISLATION for minimum wage rate or overtime

Economic

• TYPES OF ECONOMIC SYSTEM in country of operation may differ from one another

• CURRENCY EXCHANGE RATE AND COUNTRY ECONOMIC STABILITY of the host country may be a threat

• EDUCATION LEVEL of the economy in which CISCO is operating is also a question mark in case of other
countries
Social

• The difference in BUYING POWER of different countries may be a problem for CISCO to set price of their
products

• The difference of INTEREST may also effect the demand of the product from country to country

• CLASS STRUCTURE, HIERARCHY AND POWER STRUCTURE of different countries may differ
Technological

• Recent TECHNOLOGICAL DEVELOPMENTS OF THE COMPETITORS of CISCO all around the world

• Understanding the IMPACT OF COST STRUCTURE in Networking & Communication Devices industry is
important

• Understanding the rate of ECONOMIC DIFFUSION is also very important

Environmental

• CISCO Should consider the WEATHER AND CLIMATE CHANGE of the country it is operating in

• CISCO should also consider the LAWS AND REGULATIONS OF ENVIRONMENT POLLUTION

• They should consider AIR AND WATER POLLUTION regulations in Networking & Communication Devices
industry

• CISCO must work on the WASTE MANAGEMENT of Technological waste

Legal

• CISCO while entering the new markets should consider the ANTI-TRUST LAW in Networking &
Communication Devices industry and overall in the country.

• CISCO should also follow and consider the HEALTH CARE, SAFETY AND EMPLOYMENT LAWS for their
employees

• CISCO must work on the laws related to DATA PROTECTION

References
• SWOT HUB
https://swothub.com/cisco-swot-analysis/
• Fern Fort University
http://fernfortuniversity.com/term-papers/swot/1433/1036-cisco.php
http://fernfortuniversity.com/term-papers/pestel/3455-cisco.php