Cisco is one of the leading companies that offer networking and internet solutions in the information technology department with over 115 countries’ market share. It has got the headquarters in the United States. The company has provided the market with various products such as routers, malware protection, and wireless network through the companies’ various innovations. Modern society is dynamic with various technological developments being designed each day, and thus the various trends in society have expanded and opened doors for the company to prosper. The latest developments on cloud storage that demands security, automation of activities, and the development of more strong and reliable networks such as 5G and 6G boost the company’s market viability. Cisco strategies have yielded positive fruits in the past, surpassing the various goals it sets. Therefore, the various market strategies based on the SWOT analysis, that is, strengths, weaknesses, opportunities and threats, will form the basis of the company’s success.

Cisco System SWOT Analysis

With the advancement and the use of technology throughout the globe, so has the cisco system systems grown. The cisco system provides networking and internet solutions in the communication and information technology industry to around 115 countries. The systems networking solutions have enabled the connections to various individuals, computer systems and devices across the globe hence efficient and fast transfer of data and information despite the various obstacles presented by time zone, location and the devices being used (Cisco, 2020). The various network system innovations form the basis of the various services providers, Small Medium Enterprise (SMEs) and enterprise consumers such as the government sections, learning institutions and various corporations. According to Forbes (2020), the various Cisco products in the market include; internet routers and internet security systems. In addition, Cisco provides web security and optical networking services to various customers worldwide. By leveraging the internet’s services for online business operations and the connection to the customers, the company has realized its tremendous growth. The gap existing in the usage of technology and the demand for connection demand by the consumers sparked the development of Information technology infrastructure and networking solutions, hence the Cisco Company’s growth to become one of the world largest industry (Cisco 2020). Therefore, an understanding of the various strengths, opportunities and weaknesses, and threats through the SWOT analysis of the Cisco will form the basis of the company’s strategies to realize higher profits and thrive well in the market.

Trends in the Company’s Industry and Impacts on Strategy

Modern society is faced with various changes and development, with the latest trend being globalization in the internet era. There is an increasing demand for information technology resources and internet connections as companies, and various private and public institutions turn to the internet as a business and communication mode. This is due to e-commercialization, where modern society uses technology in administration and doing their business (Niu et al., 2019). For instance, the management is turning into technology as the means through which normal work within the business is conducted and creates relationships with various other companies. The demand for information technology equipment and network connectivity has led to various innovative strategies to meet the customers’ demands (Hossain, 2018). Therefore, as the network use becomes extensively used, there is a need for automation of the network, especially as the baseline of how networks will operate.

The development of technology is coming along with various demands for networks. Therefore, the deployment of the 5G and 6G networks in cellular networks and the Wifi networks to both home and business coverage is a viable opportunity for Cisco to maximize. The recent trend in the development of cars, especially the Tesla cars, is a technology boost. Therefore, there will be a need to develop sensors indicating the various charging stations. Analyzing data with machine learning algorithms and artificial intelligence forms various techniques, with artificial intelligence action based on the predictions based on network data (Cisco 2020). Competition is pushing for more economical but profitable developments in the market, with various industries turning on technology to address the various business dynamism, financial mechanism and the innovation ecosystem. Thus, the companies, including Cisco, must become innovative to address the various market demands to remain afloat in the market. The utilization of the internet in running the business and the application of documents raises the risks of the individuals and companies to cyber-attacks, especially when using the common network (Hossain, 2018). Thus, there is a demand for innovative ways to advance technology, especially securing remote network access.

Cloud storage is the recent trends, especially in storing information rather than storing information in the devices, prone to lose and accessibility if devices land into wrong individuals (Niu et al., 2019). Since public clouds have attested that they are safe in the preliminary tests, there is a need for securing the information from cyberattacks. The CloudOps are still under development to integrate the public clouds with the local infrastructure. Due to advancements in technology, the SD-Wan is being developed as a connection between the remote branch offices via the cloud, hence the standard mode for wide-area networking. This opens up the network connectivity demand for the rural-based branches, an opportunity that Cisco can grab and utilize.

Cisco strategic intent

As outlined in the company goals and objectives, Cisco company is currently committed to being the best company to secure, automated and networking solutions (Ahmed, 2020). Therefore, the company has highly invested in the innovation department, which has consequently translated to the network value leading to the company’s transformation to the business model. The company prioritizes security in their systems, and therefore, the networking products under production have been designed to improve society’s perception of networking (Hossain, 2018). This changed perception will then translate to greater market coverage both locally and internationally due to the winning of public confidence.

Financial objectives

Continuous delivery of quality products to the market attributed to its extensive investment in innovation and production will translate to reaping higher profits. The recently increased investment in the 5G and Wifi- 6G, in addition to Artificial intelligence and Optical networking, will spearhead the realization of the company goals and achievements (Niu et al., 2019). The company’s 2020 success could not be realized if it were not for solid financial status, good shareholder relations, and quality product delivery. The so-far realized goals are developing the company’s objective to generate 30% of the software’s revenue, with 29% being achieved in 2020 and 31% in the fourth quarter of the year. For instance, the company surpassed the 68% target in software sales to hit 74%. This indicated the benefit of the company’s transformation to a business model (Ahmed, 2020). Therefore, the company succeeds in gaining in capita per share in the harsh business environment that companies faced in 2020 (Niu et al., 2019).

Strategy and planning and the need for SWOT analysis

To achieve certain set goals and objectives, one ought to put in place various strategies, and so does the company. Therefore, prioritizing strengths and effective resource allocation ensures that the business succeeds (Chen, 2017). SWOT analysis, therefore, forms part of strategic planning. It investigates the various strengths, weaknesses, threats, and opportunities that the company can utilize to increase its turnover and profits, hence realizing its growth. SWOT analysis facilitates efficient utilization of resources, improves the business operations, and develops various risk mitigation strategies and the mechanisms available for the company to remain afloat in the business, hence ensuring the business’s success.

SWOT analysis

Strengths

Cisco boasts of various strengths through which effective utilization can enable the market to thrive and control it. The various strengths have enabled the protection of the company’s market share, so their transformation can help penetrate the new market niches and realize its control globally (Marín-Tordera et al., 2017). The automation of activities by Cisco has yielded a net result of quality products. Therefore, utilizing this technique will ensure the company delivers to the market quality products continuously (Hossain, 2018). This has so far given insight into the ability to control the market with the company using the automation of activities to gain a continuous production of quality products that will enable it to gain the whole market. The company has been able to gain control of the vast market distribution of the reliable network where the company expansion in the distribution of the network will maximize the profits and the number of subscriptions that the company is likely to face (Marín-Tordera et al., 2017).

The vast market control in terms of provision of internet and sale of quality products produced serves as fueling power to invest in expanding the company’s projects. It offers a strong free cash flow in terms of returns. Through workers’ dedication, the company enjoys good customer satisfaction, an opportunity that it can utilize to create new and more customer satisfying products to retain the customers and reach out to more (Ahmed, 2020). Creating a strong dealer community, which the company enjoys, can utilize it to gain more customers by increasing the number of dealers, which promotes the company’s products sales and will open more funds for investing the sales teams. The sales teams will be trained in illustrating to customers how they can utilize the opportunities to reap maximum benefit from the Cisco products.

Weaknesses

Every company has various weaknesses that it faces, but though the realization of the weakness and placing necessary strategies, the company can utilize them to be opportunities. The Cisco company structure has had some hindrance in being compatible with the expansion of various other systems of production in the company, hence this acting as an opportunity for growth if the system is designed again in accommodating various other departments with some room for expansion. Sealing off the company’s various product ranges is an opportunity to tame the competitor who uses the available gap in outcompeting the company (Ahmed, 2020). The company’s proper integration to the various work cultures that best suit the operations within that particular department will enable the company to succeed (Marín-Tordera et al., 2017). Even though the company brags about investing financially in research and development, it still lags in out-doing its competitors. Therefore, there is a need for more investment with new technologies, which aid in outshining competitors.

Opportunities

The utilization of the available opportunities can help companies to reap higher benefits as compared to her competitor. The new bilateral rules signed between the United States and other countries present an opportunity to benefit the company. For instance, these rules allow for free trade between different countries. Therefore, the production process’s maximization will translate to more export at cheaper prices to these countries as the goods are exempted from taxes, hence outcompeting other key competitors in terms of price as the goods are of higher quality (Marín-Tordera et al., 2017). The various opportunities in the government green drive present opportunities through which the company will procure the contracts with the governments in both state and federal government. The latest environment policies in terms of green energy use provide the opportunity for the cisco company to produce new products conforming to the technology and environmental policies. An opportunity of lending Cisco customers at a lower rate is an opportunity that is coming along with a low inflation rate; hence the Cisco company is keen to utilize (Marín-Tordera et al., 2017).

Threats

As companies rise to become dominant in the market, they face various challenges that present an opportunity for the company’s recession if the threats are not addressed. Since the liability laws are different in different countries, Cisco’s change will be through extensive consultation on the policies. The company is facing the challenge of regular supply of innovative products, which presents the potential competitors with an opportunity to outcompete the Cisco products and therefore, the company is strategically planning on the increased regular supply of the innovative products to the market at all seasons (Marín-Tordera et al., 2017). The company will also be keen to extensively utilize resources in recruiting new skilled employees as it faces the threat of a shortage of skilled workforce. The competitive threat to the Cisco products is due to the advancement of technology. The competitors who produce quality products in the markets at a cheaper and so the company will invest in research and development and capitalize on its innovations.

Management’s role in strategic planning

Management plays a significant role in designing the strategic planning process. Through the careful analysis of the market by the managers will ensure the company’s success, as they will cross-examine the company’s various identified strengths and weaknesses, hence forming a means through which the company can utilize them to increase profits and gain a larger market share. After analyzing the strengths, weaknesses, opportunities, and threats that the company is facing, they will plan how best the various strategies proposed can be utilized in alignment with the company goals and objectives (Chen, 2017). The management will then assign to the cisco company employees several roles and assignments in addition to targets to be met within a specified time, after which they meet with the various head of departments to check if the goals were met. Chen (2017) argues that regular communication between the management and employees will form a rapport through which the employees lobby their complaints and assign duties.

Ultimately, the cisco company enjoys the various opportunities the company can utilize to increase its shares from the current 115 countries market share. The various trends in modern society present opportunities that the company can utilize to gain more access to a larger market like globalization and e-commerce. The increased network connectivity demand is an opportunity for the company to gain control of the market. So far, the cisco intent strategies have been positive, with the company reaping the various goals it had previously set. Therefore the utilization of the various strengths such as maximization of the regular quality product output through automation of her activities will increase the market revenue. The creation of a strong dealer community will translate to higher profits as the market share will increase. Sealing off the various product ranges and the successful integration of the company to an effective workplace is an opportunity for its success. The company ability to utilize the free trade policies and provision of the loans at low-interest rates to its customers will translate to outshining the various competitors. The various threats, like the shortage of skilled workers, when mitigated with the recruitment of more qualified staff and regular supply of the quality product, will ensure its success. Management will create a good rapport with the employees to ensure the delegated duties are undertaken and the various targets.

References

Ahmed, M. S. (2020). Networking & Security for Cisco Properties.

Chen, H. (2017). The success of cisco systems, Inc.’s human resource management strategy. Journal of Service Science and Management, Vol. 10, no. 3, pp. 206-215.

Cisco. (2020). 2020 annual report: Powering an inclusive future for all. Retrieved from https://www.cisco.com/c/dam/en_us/about/annual-report/cisco-annual-report-summary-2020.pdf

Forbes. (2020). Cisco Systems (CSCO). Retrieved from https://www.forbes.com/companies/cisco-systems/?sh=5f5ae37d7029

Hossain, M. (2018). Cisco Certified Network Associate (CCNA).

Marín-Tordera, E., Masip-Bruin, X., García-Almiñana, J., Jukan, A., Ren, G. J., & Zhu, J. (2017). Do we all really know what a fog node is? Current trends towards an open definition. Computer Communications, Vol. 109, no. 3, pp. 117-130.

Niu, B., Li, J., Zhang, J., Cheng, H. K., & Tan, Y. (2019). Strategic analysis of dual sourcing and dual-channel with an unreliable alternative supplier. Production and Operations Management, Vol. 28, no. 3, pp. 570-587.

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