Cisco SWOT Analysis 2021: A Detailed Report!

cisco swot analysis

Cisco is a multinational company that is originally American. Cisco Systems Inc. maintains its presence in the technological sector by selling and manufacturing networking softwares and hardwares along with other high-tech products and services. This also includes various telecommunications equipment. Even though they specialize in specific technological sectors. Domain security is one of them. Cisco Systems Inc. was founded in December of 1984. It has its headquarters in California and to be a bit more specific San Jose.

Cisco Swot analysis definitely helps the company to gather its surroundings by helping them to take a metaphorical step back and reevaluate their decisions.

Cisco – At A Glance

Company NameCisco Systems Inc.
IndustryNetworking Hardware & Software
FoundedDecember 10, 1984
FoundersLeonard Bosack, Sandy Lerner
CEOChuck Robbins
HeadquarterSan Jose, California, U.S.
Annual Revenue$49.30 Billion (FY 2020)
Websitewww.cisco.com

Cisco SWOT Analysis

SWOT analysis can be a strategic designing body to be able to be used by the company managers to induce a flourishing situation evaluation of the company. A Cisco SWOT analysis framework can help them to recognize their inner strategic elements like strength and weakness, and additionally their outer strategic elements inclusive of possibility and threats.

Cisco Systems Inc. keeps its daunting presence in the enterprise entirely with the aid of using the SWOT evaluation frequently and up itself. Therefore, a Cisco SWOT analysis goes to be of quality use for this company.

Strengths of Cisco SWOT Analysis

strengths of cisco

 

Cisco Systems Inc. has a plethora of strengths that will help it to thrive in the main field. A Cisco SWOT analysis will help to focus on these strengths. Some of these strengths are enlisted below:

Brand Value: Cisco is one of the oldest companies involved with technology. It has made several technologies, advanced enough for the high growth market. It has also earned the trust of its customers with its extraordinary performance. Each and every computer or tech geek feels a reassurance surge through them when they hear that the product is from Cisco. This is exactly what brand value is. This company seems to attract customers even without doing anything or just plain existing. This is one of the biggest strengths of Cisco.

Strong Presence: Cisco is such an influential presence in the market that it holds the leading position in all of the marketing sectors in which it operates. For reference, here is a list of Cisco’s market shares:

  • 59.9 percent share in the Ethernet Switching market.
  • 42.6 percent share in the market of enterprising video conferencing equipment.
  • 56 percent share in the router and switch market.
  • 47.4 percent share in the market of wireless LAN products.
  • 9 percent share in the enterprise security market.

And these are only a few of them. This gives them a huge advantage over their rivaling companies.

Strong Network for Distribution: Cisco Systems have their own unique way of distributing the products. This makes sure that they are giving away their products safely and that there is less chance of the products being damaged. Because if the products are damaged, they ultimately cost more money than saving it. It also makes sure that the customers are happy. This in turn attracts more clients.

Robust Financial Strategies: Cisco is considered one of the many companies that have a very sturdy financial base. It handles its finances like no other. It is a great example to all the other corporations. This financial management expertise of Cisco is the one thing that has helped the corporation to stay afloat in many of its hard days. One of the best things about Cisco’s finance management area is that it always provides its research and development sector with plenty of funds. This is one of the many reasons for Cisco’s success.

Weaknesses of Cisco SWOT Analysis

weaknesses of cisco

 

Weaknesses are part of the internal factors of a company. A Cisco SWOT analysis will bring many of these to light.

Unsuccessful Merger: The company has a bit of difficulty fitting in or adjusting with a company that is used to a different work environment than theirs. This leads them to lose more workers. It also causes them to lose a lot of money. It can also cause the employees to lose morale, which delivers a serious blow to their work environment.

Slow Shipping: As nice and beneficial it is for them to deliver their products in their own way, it can cause hindrance. It can cause delays in the delivery process. This will cause them to annoy a few customers. So, to be in their good graces they need to speed up their delivery process. This also means that they might need to spend a bit more of their finances on their transportation systems.

Weak Presence in Global Market: Even though Cisco dominates the market when it comes to technology related stuff, they are not the only ones when it comes to a global setting. There are many other giants that dominate that game. So when it comes to the global market Cisco is a bit behind its competitors.

Opportunities for Cisco SWOT Analysis

opportunities for cisco

 

The opportunities are out of doors elements of an agency that they are able to take advantage of for income and blessings for themselves. A Cisco  SWOT analysis will help the executives to contemplate them before their next big move.

Growth in the Cloud Sectors: Cisco Global Cloud Index has announced that the annual global cloud traffic is going to be 8.9 ZB (zettabytes) by the year of 2019. This was previously only 2.1 ZB. So, comparing the two we can announce that it has increased almost quadruple of its previous self. It is also assumed that by 2019, the cloud will be able to be reliable for 89 percent of the total data traffic. The way Cisco is progressing it is bound to increase its profits and revenues by leaps and bounds.

Low Rate of Inflation: In recent years, the rate of inflation has been significantly lower. This presents Cisco with an amazing opportunity to use against the rising force of monetary inflation. This will allow Cisco to make sure they can sell their product while maintaining their integrity along with earning a reasonable profit.

Increasing Buying Capacity of the Mass: The mass popularity is one of Cisco’s greatest strengths. So, since the general people have more idle money to spend on their needs besides the necessities, they can spend their money buying different products from the company. This will result in more sales and profits for the upcoming years.

Threats for Cisco SWOT Analysis

threats for cisco

 

Threats are the most crucial part of a SWOT evaluation. A Cisco SWOT evaluation will factor out the threats for this network that has been keeping it back. Here are a few threats that can cause Cisco some serious damage:

Different Laws Around the World: Since Cisco is a multinational company, it has its customers and clients around the world. It also means that it has to operate according to the laws of those countries. But here is the thing, you see, these laws differ from country to country. This means that Cisco has to be very careful to avoid any sort of legal problems. There can be a lot of misunderstandings.

Online Market: People are switching from physical stores to online stores in these pandemic times. This is mostly to avoid covid. However, if this trend follows into the post pandemic world, it will not be so good for Cisco. Cisco is mostly dependent on its physical stores and infrastructures. Their business model and supply chain suggests as much. So an e-commerce dependent society is definitely going to be hard on Cisco.

Cisco SWOT Analysis Overview Template

cisco swot analysis overview template

 

Conclusion & Recommendations for Cisco

Here are some recommendations for Cisco to improve their market game from the experts:

  • They could try to minimize the gap between their price range of their products.
  • They could also take new initiatives to ensure successful mergers.
  • They could probably cut off some of their funding for research and development programmes.
  • They should try to settle in a sturdy business model instead of changing it so frequently.
  • They can try to give their workers more creative space.

Cisco Systems Inc. is a technology based brand that, in lots of ways, can’t be avoided. As one of the most renowned groups through sales and employment, however, it nonetheless struggles to deal with its personnel pretty much while in comparison with different groups; and it maintains a flexible position compared to different retailers. By making a few key modifications to its product services and hard work practices, Cisco Systems Inc. can develop even extra searching in advance for the future.

Written by: Angela N. Davis

I'm Angela, founder & content creator of SWOT Hub. As an entrepreneur, I love to explore various brands/companies & write about them.

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