Going Global & Managing Global Businesses Case Study

Cisco in Emerging Markets (B): Looking Beyond China and India

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Abstract:

A sequel to the case study ‘Cisco in Emerging Markets (A): Market Entry Strategies in China and India’. This case study delves into Cisco Systems’ (Cisco’s) market entry strategies in emerging markets, other then India and China.

Cisco, the major beneficiary of the Internet revolution and telecom deregulation in emerging markets in the 1990s, provided most of the equipment needed to create networks. The company stayed ahead of its time by acquiring companies to enter into new product markets and even before the demand in the developed markets saturated, it realised the importance of the emerging markets. The company, has since a long time not only been chasing opportunities in emerging markets but also started separate reporting divisions to better concentrate on the opportunities there. Cisco has been following a strategy that enables it to expand in these markets and ensures developing relationships with the government, businesses and also its competitors. Cisco has been witnessing significant increase in its revenues from emerging markets. However, now, the company is feeling the pressure of the global slowdown because of the US Financial Crisis (2008) as the demand orders from emerging markets started declining. Adding to its woes, the number of competitors are also increasing and encroaching upon its turf.

Pedagogical Objectives:

• To examine the potential of emerging markets for Cisco’s core business
• To elucidate and analyse Cisco’s market entry strategies in emerging markets
• To identify the challenges ahead for Cisco.

Contents:

• Emerging Markets: Overview
• Emerging Markets: Information and Communication Technology Sector (ICT)
• Cisco: The Background
• Cisco Emerging Markets Strategy
• Cisco's Challenges Ahead

Keywords : Cisco System Inc., India, Networking equipment, Expansion, Low-cost engineering resources, Internet market, Market Entry Strategies, Going Global, Emerging Markets, Deregulation of telecom industry, Small and Medium Businesses (SMB's)