SDM Case Analysis: CISCO Systems: Managing the Go-to-Market Evolution

Thursday, February 23, 2012

Case Analysis: CISCO Systems: Managing the Go-to-Market Evolution Group 5 ROHIT NATH | GAURAV PATANGE | MANGESH PATIL MAHTAAB KAJLA | SACHIN KUMAR

Situation Analysis  Company Introduction  Leader in switches and router market and had followed a strategy of growth through acquisitions  Market capitalization greater than $500 bn in 2000  Followed a market coverage model that contemplated approximately five tiers customers based on opportunities available

 Image in the market  Manufacturer of Highly reliable, innovative and quality products  Highly regarded for the quality of company’s relationships with the resellerdistributors or VARs

 Product Line  Products available for all the layers of ISO-OSI model of communications but layer 1  Main line of switches were the Catalyst series  Consisted of basic solutions for small businesses to high end solutions for large enterprises  Price varied greatly from low end routers to high end routers Sales & Distribution Management

Term V

Situation Analysis Competitive Landscape Market

Market Share

Market Size(in $bn)

Competitors

Core Corporate Networking Gear

 >70% for enterprise account segment  Nearly 40% for SMB or commercial account  Undisputed market leader

20

 Extreme and Foundry  HP, Nortel, 3Com, Huawei Technology

Telecommunications

 5% share in overall market  25% in top end of market

50

Nortel, Juniper, Siemens, Alcatel and Lucent

Consumer Market

 Market leader with nearly 40% share

2

NETGEAR and D-Link

Sales & Distribution Management

Term V

Situation Analysis Routes to Market Channel

Sales Contribution

Direct

10%

Target Customer All

IT consultant and system houses (IBM ,HP)

25-30%

Corporate Customers

Large telecommunication service providers(SBC)

25-30%

Customers of carriers

Traditional Value Added Reseller

30-35%

enterprise account , mid and small level businesses

Direct Marketing Reseller (CDW)