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 Home > Issues > Networking Masters > CISCO SYSTEMS: Getting It Right
  NETWORKING MASTERS
CISCO SYSTEMS: Getting It Right
This communications, networking, and convergence major has the formula of success to take on Microsoft as the world''''s most valuable company.
Ibrahim Ahmad
Monday, May 01, 2000
This communications, networking, and convergence major has the formula of success to take on Microsoft as the world''''s most valuable company.

Cisco Mantras

  • Flat organizational structure with a lot of focus on creating independent business units for freedom of work, and better focus on customer relationships
  • High focus on R&D (14 percent of revenues went into R&D last year)
  • Outsource manufacturing as much as possible
  • Share Cisco''''s own experiences of success with Internet with its present and potential customers
  • Go all out to meet the customers'''' needs including organizing finance
  • Not tied down with any particular technology—offer the customer whatever he wants.
  • Bonus for employees linked to customer satisfaction
  • Focus on productivity

Cisco is a networking company for the Internet" is how Anil Batra, chief of Cisco for India & SAARC describes the company. And the saga began with the Internet Revolution. Cisco was there with the right products at the right time.

While it is true that the world''''s hottest networking company has a range of products, its flagship products are its family of routers—one of the key enablers of the Internet Revolution. With the Internet has grown the demand for bigger, better, and faster routers that can handle information in gigabits and terabits. The demand for voice, data, and video applications on the Internet is coming not just from the corporates, but homes too. And Cisco appears to be ready to meet it.

Little wonder then that Cisco controls over 50 percent of the $21 billion networking market worldwide—a market share which has left traditional leaders like 3Com and Cabletron far behind. Market opportunity, backed by technological expertise and a clear direction, made Cisco the fastest company in stock market history to reach the $100, $200, $300 and then the $500 billion market capitalization mark.

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