Cisco research

603 Words2 Pages

first quarter of FY2012, prolonged, shortages in supplies due to capacity issues or other factors affecting the manufacturing process alter the price of these products. When there is a shortage in supplies the company may not be able to source required components in adequate quantities in a timely manner (Cisco Systems, Inc. SWOT Analysis, 2013).The company may be obligated to purchase components at higher than normal prices in the current market because of purchase commitments. When this happens its gross margin is affected. Supply chain issues also lead to delay in order fulfillment, affecting the revenues and margins of the company (Cisco Systems Inc. SWOT Analysis, 2013)
Cisco faces intense competition in the networking and communications equipment markets (Cisco Systems Inc. SWOT Analysis, 2013).Cisco also faces price competition from rival competitors in Asia, mainly in China. The company also faces competition from customers to which it licenses or supplies technology. The nature of networking requires partnerships; the company must cooperate and at the same time compete with many companies to achieve its objectives. The inability to effectively manage these complicated relationships with customers, suppliers, and strategic alliance partners may have an adverse effect on Cisco’s business. Intense competition will continue to impact Cisco’s operating results, financial condition and market shares of the company in the future (Cisco Systems, Inc. SWOT Analysis, 2013).
The political environment in which Cisco operates also has its challenges. Cisco’s alleged involvement in the PRISM surveillance program could create a great set back in the Chinese market. PRISM is a mass electronic surveillance data mining program operated by...

... middle of paper ...

...2013). Cisco channel sales and inspiration in the age of internet. Contemporary Logistics, (12), 14-30. Retrieved from http://ezproxy.snhu.edu/login?url=http://search.proquest.com/docview/1468933047?accountid=3783
Orman, N. (2001). Cisco move: Risky business. Silicon Valley/San Jose Business Journal, 19(18), 13. Retrieved from http://ezproxy.snhu.edu/login?url=http://search.proquest.com/docview/217033005?accountid=3783
"Strategic Alliances." Cisco. N.p., 3 May 2012. Web. 5 Mar. 2014.
The Network. (2014.). Cisco's. Retrieved March 4, 2014, from http://newsroom.cisco.com/press- release-content?type=webcontent&articleId=1346807
The Network. (2014, February 12). Cisco's. Retrieved March 19, 2014, from http://newsroom.cisco.com/release/1346807/Cisco-Reports-Second-Quarter-Earnings

Open Document