Cisco's early development strategy
It is different from internal and external
environment troubles faced by Huawei, Cisco has a good technology background and
it took this opportunity to grow rapidly. For cisco, it faces is a $200 billion
network equipment market. Now Cisco's business scope covers almost every part
of the network construction, such as routers, switches etc. As a whole, Cisco's
development strategy is a strategy of "four-wheel drive". The four
wheels are customer solution, strategic mergers, industry standards and
strategic alliance. The customer solution and strategic merger are the keys to
the success.
1, Product (client) solution: around the
needs of customers to establish a complete product solutions, satisfy
customers' needs.
2, Mergers and acquisitions: about 40% of
the profits of Cisco from the M&A.
3, Industry standard: Cisco is the owner of
IOS (Internet work operation system), Alcatel, Ericsson, Nortel, Compaq, HP, 3com,
Microsoft and so on all need permission from cisco.
4, Strategic alliance, such as cooperation with
Microsoft for a network industry standard; in collaboration with MCI to provide
value-added Internet services; in collaboration with HP to develop and sale computer
system based on Internet, etc. The core of customer solutions is the CCO (cisco
collection line), customers can answer questions, diagnose network problems,
provide a solution or providing expert advice, now 90% of cisco technical
support for the customer is accomplished through the CCO system. With this system,
it not only can greatly save money, but also increase customer’s satisfaction benefit
by the timely service.
ZHOU Yang
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