Essay: Cisco Systems: Top 5 Reasons for Success

Cisco Systems is a sustainable company, well-known due to their wide prevalence throughout the technological and business world. These advancements in the field of business, technology, and market management have led Cisco to become one of the leading technological enterprises of today’s society. Cisco established their dominance early in the company’s life, and continue to follow strategic plans in order to remain successful.
Throughout the growth of the technological era, Cisco systems has responded well to the needs of the market, allowing for growth and expansion. This is seen through their quick and aggressive establishment in emerging markets by providing jobs and capital, specifically in the growing economies of China and India (Duval, 2013). The company recognized that these two nations make up a majority of the population, making it necessary to capitalize on the growth of the developing nations. Once the economy begins to flourish and the standard of living increases among individuals, a larger amount of the population will be able to innovate and expand on existing technology to allow Cisco to stay a leader in the technological world (Wadhwa, 2017). Similarly, in terms of mergers, Cisco efficiently adapts to the needs of their company, picking up and expanding on software that complements the structure of the enterprise. This causes the company to grow in a strategic manner and continuously appeal to the public.
In regards to the public’s appeal, Cisco systems greatly values the wants and needs of the customer, providing valuable products and building credibility for the quality of their merchandise. Cisco recognizes the need for the evolution of technology, and this fluidity in adaptation greatly suits the needs of investors (Wadhwa, 2017). In being able to successfully capture market transitions, Cisco expanded their customer base, resulting in the ability to exploit the growth in terms of popularity and capital. This was seen through the 1997 movement of voice and video technology (Lippitz, 2010). Upon understanding the rise in devices that combined audio and visual technologies, Cisco moved to the “network of networks” in 2000 due to the idea that the “Network” became the center for all audio/visual related technology. In order to build products that suited the customer’s wishes, Cisco dynamically changed the bounds of their company, resulting in a successful line of products all due to listening closely to customers and designing solutions to ensure success.
Besides appealing greatly to the wants and needs of their customers, Cisco’s focus on employee feedback allows them to effectively manage their resources in order to develop as a company. Cisco efficiently articulates how technology gives value to their company through their employees; through forums, ideas are shared, allowing for a consensus of strategies (Lippitz, 2010). This overall builds the relationship of all departments and the most technologically advanced products. By focusing on this feedback, Cisco is able to add value to their products due to the continuous movement of improvement. Additionally, by focusing on the input of employees who work first hand on Cisco’s products, the company is able to develop new programs that appeal to the needs of society, making Cisco more relevant than ever.
Other than their beneficial interaction with employees and customers, Cisco has shown dominance over the economic world; their consistency in all economic situations allows for flexibility and rebounding. For all economic decisions, Cisco maintains the strategy of “underestimate, over deliver.” By underestimating their growth and capital as a company, they are able to exceed expectations and continually develop their company. In events where the company isn’t essentially “flourishing,” Cisco is still able to successfully recover from economic downfalls. In the event the company is struggling, by utilizing company resources, Cisco is able to ensure their growth of revenue (Chambers, 2016). By identifying which aspects of their company need to be altered in order to be successful, Cisco is able to grow, adding value to their products and market. Additionally, their resilience proves the company to be a lasting force in the technological world; through continuous prevalence in the economy and tech world, Cisco proves their product to be valuable and necessary to the growth of society. Through such a resilient approach to their company, Cisco is able to expand their products and capitalize on new markets.
In addition to Cisco’s smart economic decisions, Cisco’s focus on market share allows the company to expand rapidly, leading to prosperity. In December 2012, CEO John Chambers touched on Cisco’s success in the economic world, stating, “we focus on competing against market transitions” (Chambers, 2016). Doing so lets Cisco stay ahead in technological development, aiding in corporate longevity and flexibility. The company shows their importance in market share leadership in their goal of reaching a minimum of 40% share in all active markets, and leaving the market if that drops below 20%. This allows for Cisco to stay focused on their priorities and prosper in developing markets, such as the networking industry which currently has a 70% share (Duval, 2013). By focusing on essential market shares, Cisco is able to expand their market and further their technological growth, leading to their lasting prosperity. Throughout the lifespan of the company, Cisco’s emphasis on the needs of their customers as well as their competitive market and economic growth techniques has caused the company to prosper and remain on the Forbes Fortune 500 list.