Pest Analysis On Cisco Systems, Inc. -
December 3rd, 2010
Cisco Systems, Inc. (NASDAQ: CSCO, SEHK: 4333) is an American-based multinational corporation that designs and sells consumer electronics, networking and communications technology and services. Headquartered in San Jose, California, Cisco has more than 65,000 employees and annual revenue of US$40.0 billion as of 2010. The stock was added to the Dow Jones Industrial Average on June 8, 2009, and is also included in the S&P 500 Index the Russell 1000 Index, NASDAQ100 Index and the Russell 1000 Growth Stock Index. Cisco is one of the world's biggest technology corporations.
According to (2006) the porter generic strategies are composed of three types of strategies that are often used in different businesses, the three types of strategies are the cost leadership, differentiation and market segmentation.
- this strategy focuses on the efficiency of the company, and in order for this strategy to have favourable outcomes an organization must have a large advantage on the market share and access to raw materials, labour and other important components.
- in this strategy the company creates and develops a product that is seen as unique, and in order for the products or services to be successful the features of the product must be of excellent quality in the best deal as possible. Moreover because the product or the service is perceived by the consumers as one of a kind there is a tendency for customers to be more loyal.
In this strategy, the companies have its target markets in which it gives emphasis, companies employ this strategy in order to meet the needs of the needs of the specific markets. Segmentation strategy is often used by high end shops such as Louis Vuitton and Gucci in which it targets the AB market of the society.
According to (1995) information systems is a medium implemented by companies to record, store and distribute information regarding the organization. Nowadays, because of the constant and fast-paced changes in technology large scale companies as well as medium and small scale businesses employ technologies in order to hasten the production and mobility of the organization. The information stored in the database of the companies include the existing and probable markets, systems in planning and controlling the markets and the products, system for product development and an effective system in storing the important records of the company.
In identify the productivity of the company; technology is being used to facilitate the process. Because of these new software and technologies companies will be able to determine if the company is raking in profits or not. It can also identify the costs, expenditures and sales of the company. Through auditing the important aspects in the production, the company will be able to identify if the sales and profits have increased or decreased and if the market share of the organization is larger or smaller than the competitors. Moreover, it also determines the areas of the company and the products that gained profits and not. Through Productivity Audit, the companies are able to identify the threats and opportunities, just by looking at their market share. If the competition of the company has a market share that is near with the organization it can be identify as a possible threat. And if the company is increasing its profits, the decision is most likely effective.
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