Product details

By continuing to use our site you consent to the use of cookies as described in our privacy policy unless you have disabled them.
You can change your cookie settings at any time but parts of our site will not function correctly without them.

Abstract

This case examines the strategies adopted by the US-based Cisco Systems Inc to tackle recession in the US markets in the fiscal 2008-2009. Earlier, during the recession in 2001, Cisco was caught unawares leading to a write down of inventory worth USD2.2 billion. The company reported a loss of USD2.69 billion for the third quarter ending April 2001. Learning its lessons from the recession in 2001, Cisco was well prepared to face the recession during the fiscal 2008-2009, with a cash balance of USD34 billion. Cisco saw the downturn as an opportunity to invest in new technologies and emerging markets and continued to acquire several companies. During the recession, it found opportunities in the areas of virtualization, video architecture, telepresence, collaboration and network-enabled technologies. Cisco also benefited through its unique organization structure that comprised of small groups and councils. The structure helped the company define short-term goals when the projects were initiated and long-term goals for the company. Cisco also helped the partners and customers during recession by helping them adopt new technologies. With these and other initiatives to cut costs, even amidst recession, Cisco expected an annual growth between 12% and 17% by 2015.

Teaching and learning

This item is suitable for postgraduate courses.
Location:
Size:
Very large
Other setting(s):
2000-2010

About

Abstract

This case examines the strategies adopted by the US-based Cisco Systems Inc to tackle recession in the US markets in the fiscal 2008-2009. Earlier, during the recession in 2001, Cisco was caught unawares leading to a write down of inventory worth USD2.2 billion. The company reported a loss of USD2.69 billion for the third quarter ending April 2001. Learning its lessons from the recession in 2001, Cisco was well prepared to face the recession during the fiscal 2008-2009, with a cash balance of USD34 billion. Cisco saw the downturn as an opportunity to invest in new technologies and emerging markets and continued to acquire several companies. During the recession, it found opportunities in the areas of virtualization, video architecture, telepresence, collaboration and network-enabled technologies. Cisco also benefited through its unique organization structure that comprised of small groups and councils. The structure helped the company define short-term goals when the projects were initiated and long-term goals for the company. Cisco also helped the partners and customers during recession by helping them adopt new technologies. With these and other initiatives to cut costs, even amidst recession, Cisco expected an annual growth between 12% and 17% by 2015.

Teaching and learning

This item is suitable for postgraduate courses.

Settings

Location:
Size:
Very large
Other setting(s):
2000-2010

Related