Cisco's Strategy in Recessionary Times
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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.
After the crisis in 2001, Cisco realized that one of the reasons for its problems was its hierarchical structure. According to Chambers, "In 2001, we were like most high-tech companies, with one or two primary products that were really important to us...
Partners and Customers
Cisco made efforts to assess how big the recession and its duration would be and to plan accordingly. The company viewed the recession as an opportunity to move closer to the customers and partners...
New Products and Markets
In spite of the recession, Cisco continued to acquire several companies (Refer to Table IV for Cisco's acquisitions during 2008 and 2009). The company entered sectors like sports and entertainment, electricity grids, consumer networking, etc...
Even in recessionary times, Cisco looked at expanding into new markets. The company predicted an annual growth of between 12% and 17% till the year 2015. It always developed its business strategies with a long-term perspective, irrespective of the macro-economic conditions...
Exhibit I: Cisco Systems - Quarterly Financial Statement