Cisco SWOT Analysis [Update 2022] ❤️

Cisco SWOT Analysis 2022

Cisco SWOT Analysis: Sandy Lerner and Leonard Bosack Leonard Bosack and Sandy Lerner founded Cisco System back in the year 1984.

Cisco System is which is a U.S multinational technology company headquartered in San Jose, California. 

Cisco has contributed significantly to the hardware and technology industry through the production and sale of high-tech services and products including telecommunication equipment, networking hardware, and software (Annual Report 2020). 

Furthermore, with its wide collection of subsidiaries acquired such as Jasper, Jabber, Webex as well as OpenDNS, Cisco has specialized in a variety of tech areas such as energy management, the security of domains, Delaware as well as the Internet of Things (IoT) (Cisco 2012). 

Since the company’s public listing in the mid-90s, it had gained an estimated market capitalization of more than $220 million by the year 2000, and, by 2021 the company will have an estimated market value of $230 billion (Cisco 2020).

Highlights

Cisco Systems Inc (Cisco) is an integrator of intention built-in technologies for collaboration, security, networking applications, and the cloud. 

Cisco’s products and services aid clients in managing the number of devices, users, and devices connected with their network. 

Cisco provides services to a range of industries, such as enterprises’ commercial units, commercial units, and service providers as well as those in the public sector.

 Cisco sells solutions via a direct sales force as well as channel partners that include service suppliers, system integrators, resellers, and distributors. 

The company has a global business and operational presence throughout the Americas, Europe, the Middle East, Africa, Asia-Pacific, Japan, and China. Cisco is located in San Jose, California, the US.

Cisco – At A Glance

Name Cisco Systems, Inc.
Website https://www.cisco.com/
Founders Leonard Bosack and Sandy Lerner
Chief Executive Officer (C.E.O.) Chuck Robbins
Headquarters San Jose, California
Type of Corporation Public
Year Founded December 1984
Revenues (2019) $51,904 million (FY 2019)
Key Products/Services VoIP services, Hosted Collaboration Solution (HCS), Network Emergency Response, Certifications
Key Competitors Juniper, IBM, HP, Checkpoint, Aruba, Microsoft, Polycom, Avaya,

Cisco SWOT Analysis

SWOT analysis could be an effective strategic design body that can be utilized by company executives to create a positive analysis of the current situation of the company. 

The Cisco SWOT analysis tool will aid them in identifying the strategic aspects that are within them, such as the strength and weaknesses of their organization, in addition, to their strategic external elements including threats and possibilities.

Cisco Systems Inc. keeps its formidable presence in business entirely because of a SWOT assessment often and then completing the evaluation. So an analysis conducted by Cisco SWOT is of high-quality benefit to this business.

Strengths In The SWOT Analysis Of Cisco

Cisco Systems Inc. has many strengths that will allow its success in its main industry. The Cisco SWOT analysis can help to identify the strengths. A few of these strengths are listed below:

❤️ The value of the brand: Cisco is one of the oldest companies that deal in technology. It has created a number of technological advancements that are suitable for the market that is growing rapidly. Cisco has also gained the confidence of its customers through its exceptional performance. Every computer user or tech enthusiast is able to feel a sense of security through them after hearing that the product is made by Cisco. This is exactly what the brand’s worth is. Cisco is a company that seems to draw customers despite not having done anything or even existing. This is among the main strengths of Cisco.

❤️ A Prominent Presence Cisco has such a powerful player in the marketplace that it is in the top position in all the areas of marketing within which it operates. To help you understand, here’s an overview of Cisco’s market share:

  • 59.9 percent of the Ethernet Switching market.
  • 42.6 percent of the market for innovative video equipment for conferences.
  • 56 percent of the market for routers and switches.
  • 47.4 percent of the market for wireless LAN devices.
  • 9 percent of the security market for enterprises.

This is just the beginning. This gives them a massive advantage over their competitors.

❤️ Strong Distribution Network: Cisco Systems has its own distinctive method of distribution of its products. This ensures that they’re giving away their products with safety and there is a lower chance of their products getting damaged. If the product is damaged, it will cost more than they would have to pay for it. This also ensures that customers are satisfied. This, in turn, attracts more customers.

❤️ Effective Financial Planning Cisco can be considered to be one of many businesses that have a solid financial foundation. It manages its finances in a way that is unlike any other. It’s an excellent model for other companies. The expertise in financial management from Cisco is the only thing that has enabled the company to remain afloat through its tough times. One of the great things about the finance department of Cisco is that it is able to provide its research and development division with ample money. This is among the many reasons behind Cisco’s achievement.

 Weaknesses  In The SWOT Analysis Of Cisco

These weaknesses are part of the internal elements of a company. A Cisco SWOT analysis can reveal a lot of these weaknesses to the fore.

❤️ Delaying Orders: Despite having a reliable delivery system and high-quality products, Cisco faces problems with the delivery of orders and shortages of components. Cisco is experiencing issues with its supply chain which resulted in delays in orders, distribution issues, and slow delivery. It’s become difficult that the business faces to make high-quality products and deliver its products on time to customers, thereby negatively impacting its image and reputation, and losing sales compared to its counterparts (Daisy 2020).

❤️ Declining Sales: In addition to supply chain issues, Cisco has also witnessed an increase in revenue. For instance, Cisco Systems in the important infrastructure sector has seen its revenue drop continuously every year, which led to its share price drop by 5percent in 2021 (Haider 2021).

Opportunities In The SWOT Analysis Of Cisco

The possibilities are not doors aspects of an agency that can be taken advantage of to earn financial gain and even advantages for themselves. The Cisco SWOT analysis will assist executives to think about these opportunities prior to making their next decision.

❤️ The growth of cloud computing: According to the Cisco Global Cloud Index The annual cloud traffic worldwide is predicted by experts to triple between 2.1 to 8.6 Zettabytes (ZB) by the year 2019. Datacenter traffic in the world is forecast to also triple between 3.4 up to 10.4 ZB by 2019. Cloud is projected to be responsible for greater than 83% of overall data center traffic by the year 2019. Cisco’s presence Cisco in this industry will increase its revenues and profits.

❤️ The growth of the software market The software-defined networks (SDN), as well as the network function virtualization (NFV) market, is predicted to expand at a rate of more than 86% in the period 2015-20, resulting in an estimated $45 billion.

❤️ The growth of Cloud Security: With the increase in cloud computing, it is evident that cloud security is also expected to increase. The global market for cloud security solutions is expected to see a growth of more than 13% between 2014-2017 and will reach $12 billion in 2022. The position of Cisco in this space can be assessed by the variety of its services, including Cisco IronPort Hybrid Email Security service for filtering emails; Cisco IronPort Encryption Appliance; Cisco AnyConnect Secure Mobility Solution as well as Cisco Security Operation Intelligence.

Threats In The SWOT Analysis Of Cisco

The threat assessment is the most important aspect of a SWOT assessment. A Cisco SWOT assessment will take out the risks to this network, which has kept it in check. Here are some of the risks that could be able to cause Cisco significant damage:

❤️ Different laws around the World: Since Cisco is a multinational corporation It has clients and customers all over the globe. This also means that it is required to be operating in accordance with the laws of these countries. However, here’s the problem that you need to know: the laws of each country differ from to country. This implies that Cisco should be vigilant to avoid any kind of legal issues. There are a lot of miscommunications.

❤️ online market: Customers are shifting from physical shops to online shops during these epidemic times. This is mostly for the purpose of avoiding covid. If this trend persists in the post-pandemic world this will not be a good thing for Cisco. Cisco is heavily dependent on its infrastructure and physical stores. Their model of business and supply chain indicates that they are as dependent. Therefore, a society that is largely dependent on e-commerce is going to be difficult for Cisco.

Limitations of SWOT Analysis for Cisco

While SWOT analysis is a popular tool for strategic planning, SWOT analysis is used widely as a tool for strategic planning however, it does have some limitations.

  • Certain aspects or capabilities of an organization could be both a strength as well as a weak point at the same. This is among the main drawbacks that SWOT analysis has. For instance, changing environmental regulations could be and risk to companies, but as well as an opportunity in the sense that it can allow the company to compete in a position to compete with its competitors or even gain an advantage over competitors when it is can develop its products quicker than competitors.
  • SWOT doesn’t provide a way to gain competitive advantages and therefore it shouldn’t be a complete solution.
  • The matrix serves as an idea to begin discussions on how the suggested strategies might be implemented. It offered an evaluation time frame, but not a strategy for implementation built on Cisco’s strategic competitiveness. Cisco
  • It is a static analysis and analysis of the current conditions with only a few potential modifications. As the environment, circumstances, and threats evolve, the dynamics of a competitive setting cannot be analyzed in one matrix.
  • SWOT analysis could make a firm overemphasize one external or internal aspect when formulating strategies. There are interrelations among important external and internal elements that SWOT doesn’t reveal, which can be vital in formulating strategies.

Weighted SWOT Analysis of Cisco

Given the above-identified shortcomings of the SWOT analysis/ matrix, the management of the corporation is determined to give weightage to every internal strength and weakness of the business. 

They also consider the likeliness of events happening in the near future and what the effect will be on the company’s performance.

This technique is known as the Weighted SWOT analysis. It’s better than a simple SWOT analysis since With a Weighted SWOT Analysis Cisco managers are able to focus on the most important aspects and eliminate the less important ones. 

It also helps solve the problem of a long list that causes organizations to make an extensive list, but none of the items are considered crucial.

References Books on Cisco SWOT Analysis

Cisco (2018), “Cisco Annual Report”, Published in 2018.

Euromonitor (2018), “Technology Sector Analysis “, Published in 2018.

A. D. Chandler, Strategy and Structure (Cambridge, Mass.: MIT Press, 1962)

L. Wrigley, Divisional Autonomy and Diversification (Ph.D., Harvard Business School, 1970)

M. E. Porter, Competitive Strategy(New York: Free Press, 1980)

O. E. Williamson, Markets and Hierarchies(New York: Free Press, 1975)

R. E. White, Generic Business Strategies, Organizational Context and Performance: An Empirical Investigation, Strategic Management Journal7 (1986)

Recommendations for Cisco

Here are some recommendations for Cisco to improve their market game from the experts:

  • They could try to minimize the gap between the price range of their products.
  • They could also take new initiatives to ensure successful mergers.
  • They could probably cut off some of their funding for research and development programs.
  • They should try to settle into a sturdy business model instead of changing it so frequently.
  • They can try to give their workers more creative space.

Conclusion

Cisco is a name to be reckoned with in the IT business with its unique innovations, acquisitions, solid growth strategies, and dependable products. However, the company has huge potential for growth. 

These opportunities lie within the products and services. While competition is intense, Cisco is already a leading company in its field and has advantages that will help ensure that Cisco stays ahead of the pack.

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