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Running head: CISCO SYSTEMS INC. 1Cisco Systems Inc. Saul Prado Yingwen Lu (Raymond)Gus CastellanosFeifan Liu California State University, Los Angeles Dr. Juanita TrustyMGMT3080
2CISCO SYSTEMS INC. Cisco Systems Inc. Background Cisco Systems was founded in December 1984 in San Francisco, California, by a husband and wife team from Stanford University, Leonard Bosack and Sandra Lerner. Two Stanford University computer scientists pioneered the concept of a local area network (LAN) being used to connect geographically disparate computers over a multiprotocol router system. And the company name "Cisco" was derived from the city name San Francisco, which is why thecompany's engineers insisted on using the lowercase "cisco" in its early years. Cisco Systems, Inc. is a leading supplier of communications and computer networking products, systems, and services. Cisco's primary product from the beginning was the internetworking router, a hardware device incorporating software that automatically selects the most effective route for data to flow between networks. The company grew at a tremendous rate as its market rapidly expanded. In the early 1990s, companies of all sizes were installing local area networks (LANs) of personal computers. As such, the potential market for linking these networks, either with each other or with existing minicomputers and mainframe computers, also grew. And according to Gomes, Leewriter from Wall Street Journal mentions Cisco's sales jumped from $183.2 million in 1991 to $339.6 million in 1992, and net income grew from $43.2 million to $84.4 million during the same period. Cisco's key wireless acquisition also came in late 1999 with the announcement of the $800 million purchase of Aironet Wireless Communications, Inc., maker of equipment that creates LANs without wires in small and medium-sized businesses. The technology was also expected to be transferred to the home environment, where Cisco aimed to capture what was predicted to be an area of rapid early 21st century growth: the networked home (Fortune, 1999, p119). And by 2005 the “bundle war” happen, that is all the cable and telephone companies were
3CISCO SYSTEMS INC. interested in providing a bundle of services to their customers, a package of converged networks that included broadband Internet access, Internet-based telephone service, wireless calling, and video services such as video-on-demand. And that time Cisco was well equipped to provide the first three types of services, but it lacked the ability to provide anything substantial in the video realm. The purchase of Scientific-Atlanta gave Chambers quadruple play capabilities, opening a new, vast market for the company. "Once you add video," Chambers explained in a November 21, 2005 interview with Business Week Online, "not just in products, but in being able to integrate them all together, that gives us leadership that is very, very unique."Products and ServicesAs a major player in the technology industry, Cisco has created an efficient business model to ensure that it navigates the market. Mainly, the business manufactures hardware and software to suit the needs of its clients (Jenkins, n. p). The entity serves small