Cisco's Strategy in Recessionary Times


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Case Details:

Case Code : BSTR373
Case Length : 16 Pages
Period : 2000-2010
Pub Date : 2010
Teaching Note :Not Available
Organization : Cisco Systems Inc
Industry : IT - Networking Equipments
Countries : US

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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.

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"We are confident that our aggressive strategy of investing in the business during the downturn and our focus on innovation, operational excellence, and productivity are driving our momentum and growth in the market. We believe that we are extremely well-positioned - by geography, in our customer segments, and in our key product categories - as economies around the world continue to improve and our customers increase their technology investments."1

- John Chambers, Chairman and CEO of Cisco, in February 2010.

"When you face an economic challenge, focus on what we can influence, and not over or under react to things we cannot. It's a question of living in the world as it is, not the way we want it to be."2

- John Chambers, Chairman and CEO of Cisco, in July 2009.

Introduction

For the second quarter that ended on January 23, 2010, the US-based Cisco Systems Inc. (Cisco), the world's largest manufacturer of computer networking equipment, reported net revenues of US$ 9.815 billion and a net income of US$ 1.853 billion.

The results showed an improvement in the company's financial performance after four consecutive quarters of decline.

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1] "Cisco Reports Second Quarter Earnings," http://money.cnn.com, February 03, 2010.
2] Michael S Malone, "Cisco's CEO Says Internet 2.0 Will Drive Productivity Growth in the New, New Economy," http://online.wsj.com, July 28, 2009.


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