1 click to edit master subtitle style the network as the platform presented to: dr. tamas koplyay...

1

Click to edit Master subtitle style

The Network As The Platform

Presented To:

Dr. Tamas Koplyay

MGP708QA

Strategy Formulation In

High-Tech & PM Setting

Fall 2008

Université du Québec en OutaouaisDépartement des Sciences Administratives

Prepared By:

Rassoul Fayed

Nehad Shukur

Saleh Hashem

Tony Rwigamba

Jamel Touati

Tuncay Keskek

Agenda

Cisco Company Profile Networking Systems Strategies (2001 & 2008)

Unified Collaboration Analysis & Strategy (2008)

Security Analysis & Strategy (2008)

Conclusions & Strategy Recommendations

Agenda – Cisco’s Anthem …

1-Minute Video Click Here

Welcome to the Human Network

http://ca.youtube.com/watch?v=A_ATCKWXvEg





Agenda

Networking Systems Strategies (2001 & 2008)




Cisco Company Profile

Agenda – Cisco Overview• Company Profile

• History

• Vision/Mission/Goal

• Business Segments

• Technology Industry Value Chain

• Overall Market Share

• Financial Analysis• Saleh & Tony these are just suggestions of topics and to

fill in the blanks .. Please organize this agenda as you wish.

Cisco’s Vision & Profile

300 Locations in 90 Countries

400 Buildings

7 Critical Enterprise Production Data Centers

1500+ Labs Worldwide (500+ in San Jose)

60,000 + Employees & Contractors

25,000 Channel Partners

110+ Application Service Providers

210+ Business & Support Development Partners

Market capitalization twice that of its Top 11 north American competitors

#1 player on internet routers and switches

#1 or 2 player in Wireless, Home Networking, Security, Optical, IP Telephony, Storage

“Changing the Way We Work, Live, Play, and Learn”

Cisco’s Acquisitions

Routers (23.9%) Switches (40.2%) Advanced Technologies (29.4%) Others (6.5%)

2008 Total Revenues %

Enterprise Customers (45-50%) Service Providers (25%) Commercial Customers (25%) Consumer/SOHO (3-4%)

Major Consumer Groups & Theaters

Cisco’s Competitors

Title?

Net Sales/ Income/ Cash Flow …

Cash/Sales/Net Income/Market Value

Profitability

Liquidity

Leverage

Activity

Very low Average Very High

Very tight About right Too much slack

Too much debt Balanced Too much equity

Too slow About right Too fast

*

*

*

*

Financial Ratio Profile

Best profit margin in high tech, strong cash position $26 billion

Spend Aggressively on Brand Building Invest in Research and Development of New

Products through acquisition Fund New Business Lines Increase Employee Benefits Buy Back Its Own Shares of Stock

Cisco Financial Strategy

1.Technical staff Skills

2.Resources and Personnel Utilization

3.Level of Technology Used in Products

4.Strength of Patents and Processes

5.Products Effectiveness

6.Value Added to Product

7.Economies of Scale

8.Level of Coordination and Integration

Weak Neutral Strong

0 25% 50% 75% 100%

Company Capability Profile

Technical Factors

1. Product Strength, Quality, Uniqueness

2. Customer Loyalty and Satisfaction

3. Market share

4. Low Selling and Distribution Costs

5. Use of Life Cycle of Products

6. Investment in R&D

7. High Barriers to Entry in Co. Markets

8 Market Growth Potential advantage

9. Customer Concentration

0

Weak Neutral Strong

25% 50% 75% 100%

Competitive Factors


Weak Neutral Strong

1.Corporate Image, Social Responsibility

2.Use of Strategic Plans and Analysis

3.Environmental Assessment and Forecasting

4.Speed of Response to Changing Conditions

5.Flexibility of Organization Structure

6.Management Communication and Control

7.Entrepreneurial Orientation

8.Ability to Attract & Retain Creative People

9.Aggressiveness in Meeting Competition

Managerial Factors

0 25% 100%50% 75%



Financial Factors Weak Neutral Strong 1.Access to Capital When Required 2.Degree of Capacity Utilization

3.Ease of Exit from the Market 3

4.Profitability, Return on Investment

5.Liquidity, Available Internal Funds

6.Degree of Leverage, Financial Stability

7.Cap. Investment, Capacity to Meet Demand

8.Ability to Sustain Effort in Cyclic Demand

9.Price Elasticity of Demand

0 25% 50% 100%75%

Resources & Capabilities Appraisal

STRATEGY

INDUSTRY KEYSUCCESS FACTORSCOMPETITIVE

ADVANTAGE

ORGANIZATIONALCAPABILITIES

RESOURCESTANGIBLE INTANGIBLE HUMAN

•Financial•Physical

•Technology•Reputation•Culture

•Skills/know-how•Capacity for communication & collaboration•Motivation

Cisco ModelCisco Model

Resources/Capapbilities/Competitive Advantage Links

Time

Sa

les

volu

me

Emergence Convergence Coexistence Dominance

Established Industry

Emerging Industry

Cisco Industry Life Cycle Model

FIRM INFRASTRUCTURE

HUMAN RESOURCE MANAGEMENT

TECHNOLOGY DEVELOPMENT

PROCUREMENT

INBOUND OPERATIONS OUTBOUND MARKETING SERVICE

LOGISTICS LOGISTICS & SALES

PRIMARY ACTIVITIES

SUPPORT ACTIVITIES

The Porter Value Chain

Cisco’s Supply Chain Structure

Cisco’s Fulfillment Supply Chain

SUPPLIERS

POTENTIALENTRANTS SUBSTITUTES

BUYERS

INDUSTRYCOMPETITORS

Rivalry amongexisting firms

Bargaining Power of Suppliers

Bargaining Power of Buyers

Threat of Substitutes

Porter’s Five Forces Analysis

Threat of New Entrants

Agenda

Cisco Company Profile




• Networking Systems Strategies (2001 & 2008)

Agenda – Cisco Networking

Networking Overview• Industry Overview• Technology Leadership• Networking Product Life Cycle

Networking Analysis & Strategy (2001)• Growth Vector Analysis• Stakeholder Analysis• Product Life Cycle Marketing Strategy• BCG Growth Share Matrix

Networking Analysis & Strategy (2008)• SWOT Analysis• Networking Finances• Porter Five Forces Competitive Analysis• SPACE Analysis Overall Market Share




Networking Overview• Industry Overview• Technology Leadership• Networking Product Life Cycle

Power of the Integrated Network

1-Minute Video Click Here


http://www.cisco.com/en/US/solutions/ns726/networking_solutions_products_genericcontent0900aecd805b474b.html




The Internet Backbone

A network Router is a computer whose software and hardware are usually tailored to the tasks of routing and forwarding information

A network Switch is a computer whose that connects connectes network segments.

Router & Switch are marketing terms. With appropriate software, a PC can act as a router or a switch.

Routers & Switches

Switches

Routers Products

1.Routers2.Switches3.Network Management4.Cisco IOS Software5.Interfaces and Modules

Services1.Network Management Services2.Routers and Routing Systems Ser

vices3.Routing and Switching Services4.Server Networking and Virtualiza

tion Services

Network Systems

Cisco Networking - Products & Services

http://www.cisco.com/en/US/products/hw/routers/index.html

http://www.cisco.com/en/US/products/hw/switches/index.html

http://www.cisco.com/en/US/products/sw/netmgtsw/index.html

http://www.cisco.com/en/US/products/sw/iosswrel/products_ios_cisco_ios_software_category_home.html

http://www.cisco.com/en/US/products/hw/modules/prod_module_category_home.html

http://www.cisco.com/en/US/products/ps6835/serv_group_home.html






Cisco Networking 2008 - Competitive Landscape

Cisco Networking Competitors


Networking Overview• Industry Overview• Technology Leadership




Networking Overview• Industry Overview• Technology Leadership


Networking Analysis & Strategy (2008)• Stakeholder Map• Financial Analysis• SWOT Analysis

Stakeholder Map

Communities

CompetitorsCompetitors

SuppliersSuppliers

CustomersShareholdersShareholders

GovernmentsGovernmentsStrategic Alliance Partners

Strategic Alliance Partners

Cisco

•Small Business•Enterprise •ISP•Consumer

Industry PeersIndustry Peers

EmployeesEmployees

Innovators

Management

Networking Financial Analysis

WWeaknesses Declining market share in storage

networking and weak presence in the contact center

Relatively weak presence in China

TThreats Intense competition

US Telecom industry consolidation

Dependence on suppliers

SStrengths Strong market share and revenues in

networking systems

Diverse customer base and product offerings

Extensive geographic reach

OOpportunities Acquisitions in growth markets

Strategic alliances and partnerships

Strong portfolio in UC

Growing enterprise security market

Internal External

SWOT Analysis

SStrengths

Strong growth in revenues, cash flows and returns indicates better financial position of the company

Diverse customer base and product offerings would help Cisco reduce dependence on specific products, customers and markets.

Extensive geographic reach reduces business concentration.

Internal

SWOT Analysis

OOpportunities Acquisitions provide Cisco to generate incremental

revenue from various growth markets such as social networking.

Strategic alliances will contribute to future product enhancement and company growth.

Cisco has a strong portfolio to catering into Unified Communications market, which is estimated to reach $49B in 2012.

Growing enterprise security market provides opportunity to sustain overall revenue growth.

External

SWOT Analysis

WWeaknesses

Weak presence in contact center technologies and declining storage networking market share

Relatively weak presence in China – despite Cisco’s efforts to gain market share in this region, it takes time to see results.

Internal

SWOT Analysis

TThreatsIntense competition would adversely affect Cisco’s top

line growth and margin.

Consolidation in the US telecommunication industry reduces numbers of customers and creates large rivals

Dependence on suppliers would affect Cisco’s business operations and margin.

External

SWOT Analysis

Confront Avoid

Exploit

SearchOpportunities

Threats

WeaknessesStrengths

External Factors

Internal Factors

Intense competition

Acquisitions

Strategic alliances

Diverse customer base

Extensive geographic

US Telecom Consolidation

Strong UC portfolio

Strong Revenue

SWOT Analysis

Dependence on suppliers

Growing enterprise security

Agenda

Cisco Company Profile Networking Systems Strategies (2001 & 2008)



• Unified Collaboration Analysis & Strategy (2008)

Agenda – Cisco Collaboration

Competitive Landscape Positioning Map SPACE Analysis Nehad these are just suggestions of the

Collaboration agenda items. Please organize this agenda as you wish.

Cisco Collaboration Video …

30-Seconds Video Click Here


http://www.youtube.com/watch?v=-UXOj_ob-_Y




Cisco Collaboration 2008 - Competitive Landscape

Successful companies are using supply – chain collaboration :

Drive innovation Reduce cost Strengthen customer relationships Increase revenue and market share Companies expanded their ability to share objectives Business processes Performance metrics with their supply –chain , partner and customer

Collaboration

Telecommunicating Access to remote experts Human resources recruiting Board of director meetings Customer briefing center Remote management Real time document sharing Distance learning Product research and development Team building

Top 10 Ways For Company could use video conferencing

Create a common vocabulary (How we will achieve our 3-

5years and advance toward our vision and mission)

Develop Collaborative Processes (strategic decision-making )

Share in a Belief System Practice Executive Scaling Develop Metrics

Collaborative Leadership Style

Cisco emphasizes a unified communications strategy that integrates web conferencing /videoconferencing and meeting with its voice, network and call management offerings

Meeting Place is a robust , enterprise-oriented product with many possibilities for expansions and customization

Cisco Leading Collaboration

Quality Web Ex

MicrosoftCitirx Online

IBM

Low Adobe System Price Cisco Genesys Conferencing

Low

Positioning Map – Unified Collaboration

Title? – Unified Collaboration

Financial Strength

5.2

Focus Cost Leader

Competitive -1.6 5.2 Industry Advantage strength

Defensive Differentiation

-3.8

Environmental stability

SPACE Analysis – Unified Collaboration

Evaluation Criteria Weighting

Product/Service High

Overall Viability (Business Unit , Financial, Strategy ,Organization )

High

Sales Execution /Pricing Standard

Market Position Moderate

Marketing Execution Standard

Customer proximity High

Operation Low

Core Competencies & Evaluation Criteria

Evaluation Criteria Weighting

Market understanding High

Marketing strategy High

Sales Strategy Standard

Offering (product) Strategy High

Business Model Standard

Vertical /industry Strategy Low

Innovation High

Geographic Strategy Low

Core Competencies & Evaluation Criteria

Agenda

Cisco Company ProfileNetworking Systems Strategies (2001 & 2008)


Conclusions & Strategy RecommendationsSecurity Analysis & Strategy (2008)

Agenda – Cisco Security Competitive Landscape Cisco Security Solutions Strategic Map Porter Competitive Analysis BCG Growth Share Matrix SPACE Analysis Rassoul these are just suggestions of the

Collaboration agenda items. Please organize this agenda as you wish.

No Security Video, Let’s Enjoy This …

30- Seconds Video Click Here


Rassoul I couldn’t find a security so I’m suggesting this fun short video to keep our presentation entertaining. Please feel to keep it or not since this is your section and if you have a security 1 min max video it would be even better

http://www.youtube.com/watch?v=0p75upNpHUY




Cisco Security 2007 – Competitive Landscape

http://newsroom.cisco.com/dlls/corp_012403.html

http://newsroom.cisco.com/dlls/2007/corp_010407.html?CMP=ILC-001


http://newsroom.cisco.com/dlls/2007/corp_110107.html









http://newsroom.cisco.com/dlls/corp_102202.html

http://newsroom.cisco.com/dlls/fspnisapi0646.html



Integrated Multi-cover Protections at all points in the Network

•Cisco ASA 5500 Series Firewall Edition

•Firewall Services Module

•Cisco ISO Firewall

•Cisco ASA 5500 Series VPN Edition

•IPsec VPN Services Adapter

•Cisco ISO IPsec VPN

•Cisco ASA 5500 Series IPS Edition

•Cisco IPS 4200 Series Sensors

•Cisco Security Agent

•IDS Services Module-2

•Cisco ISO IPS

•Cisco ASA 5500 Series Content Security Edition

•IronPort C-Series E-mail Security Appliance

•IronPort S-Series Web Security Appliance

Cisco Security Solutions

Cisco Virtual Office Securely extend video, voice, wireless and data services to a remote workforce.

Data Loss Prevention Protect valuable data, control and monitor network access, and enforce content policies.

PCI Compliance Meet regulations for confidentiality, integrity, availability and auditing.

Network Admission Control Enforce security policy compliance on all devices seeking to access network resources.

Physical Security Help ensure the safety and security of your staff and business assets.

Integrated Router/Switch Security Identity Management Application Optimization and Security Anomaly Detection and Mitigation Multifunction Security

Cisco Security Product Portfolio

Title?

. “one in ten WebPages are infected with malicious code, and that 70 percent of Web-based infections were found on “legitimate” websites (those with a neutral to positive reputation”Source: A Google study, released in May 2007, analyzed the presence of malware across all pages indexed by the Google search crawler

Title?

Cisco/IronPort

Microsoft Google/ Postini Symantec

Trend Micro MessageLabs McAffee

Secure Computing Proof Point Websense

Low High

Competitive Capability

Div

ersi

ficati

on

High

Low

Strategic Map - Industry

Porter Competitive Analysis

Firewalls NAC

Email & Web

IPS & IDS

MSS

VPN

BCG Growth Share Matrix

Title?

Agenda

Cisco Company ProfileNetworking Systems Strategies (2001 & 2008)




Strategic Profile: Design Factors

• Sustainability• Uniqueness• Value Added• Enhancement• Flexibility• Stability• Fit• Performance• Consistency• Stretch

Saleh, as we discussed this is your section for the Conclusion, Recommendation & assessment based on the factors below:

Conclusion

Strategy Recommendations

Proposed Strategy Assessment

Strategic Profile: Design Factors

• Sustainability• Uniqueness• Value Added• Enhancement• Flexibility• Stability• Fit• Performance• Consistency• Stretch

Thank You

Questions ?

Chambers Downturn Strategy

5-Minutes Video Click Here

Chairman and CEO John Chambers discusses Cisco Post-Q109 Earnings and what Cisco is doing in these challenging economic times. He talks about, in part, that while Cisco will undertake appropriate expense management initiatives in the current environment, it will also make some calculated investments into areas it can accelerate development and Cisco’s leadership.

http://www.youtube.com/watch?v=OVrsVJsZop4&eurl=http://blogs.cisco.com/news/comments/john_chambers_discusses_cisco_post_q109_earnings/

http://www.youtube.com/watch?v=OVrsVJsZop4&eurl=http://blogs.cisco.com/news/comments/john_chambers_discusses_cisco_post_q109_earnings/

1 click to edit master subtitle style the network as the platform presented to: dr. tamas koplyay...

Documents