Team Company

4 Pages 928 Words

Introduction
Cisco Systems, Inc. is the worldwide leader in networking for the Internet. Cisco's Internet Protocol-based (IP) networking solutions are the foundation of the Internet and most corporate, education, and government networks around the world. Cisco is famous for its routers and switches that link networks and power the Internet. It also makes network access servers and management software. Although the company is very young, it has achieved an enormous growth in the last decade. The computer networking industry is an extremely fast paced business. Technology is constantly evolving, forcing companies to come up with more innovative products. The customers are well informed about the market and very demanding. They can easily switch from Cisco to one of the numerous competitors. The competition is very tough with more companies moving into the networking industry. However, the rewards are far greater than risks: in 1998, Cisco had net income of more than $1 billion and was growing at 31% rate. The success of the company was due to the groundbreaking research and development, exceptional marketing and excellent staffing.
Identified Relevance of Innovation
Perhaps the most important strength Cisco has is the Globally Networked Business. This is a mixture of programs that permits the company to converse online with their stakeholders. At any time, employees, partners, customers, and suppliers are able to retrieve online information. In 1997, the company was able to avoid spending $250 million due to the Globally Networked Business application. This strength could be the basis of an ongoing competitive advantage if the company could develop a way to construct the process for current and prospective clients. The Globally Networked Business has the capability of giving Cisco a sustainable competitive advantage in the industry. To stay on top, Cisco must constantly develop and improve its products and services. The major ...