case study marketing

1. MALAYSIAN GRADUATE SCHOOL OF
ENTERPERENEURSHIP & BUSINESS
Presented by:
AZHAR NAIMA MUTLAK
p14d487f
SHIVAN SALEEM KHALID
p15d082f
WIJDAN IBRAHIM ABDULHAMEED
submitted to :
Dr. Bidin Chee Bin
Kifli

2. Introduction:
CISCO SYSTEMS INC. IS THE WORLDWIDE LEADER in networking
for the Internet. The company was founded in 1984 by two computer
scientists from Stanford University seeking an easier way to connect
different types of computer systems
Cisco Systems shipped its first product in 1986 and is now a multi-
national corporation, with over 35,000 employees in more than 115
countries. Today, Cisco solutions are the networking foundations for
service providers, small to medium business and enterprise customers
which includes corporations, government agencies, utilities and
educational institutions
Cisco's networking solutions connect people, computing devices and
computer networks, allowing people to access or transfer information
without regard to differences in time, place or type of computer system.

3. Q1: How is building a brand in a business-to-business context different from
doing so in the consumer market?
From reviewing the text and in reading the Cisco case study, it seems
that business-to-business marketing consists of a more direct approach
through very specific channels of distribution. Business-to-business
success is centered around more personal relationships between the
partner companies. In the Cisco case this was demonstrated by Cisco's
business to business relationships it developed with Matsushita, U.S.
West, and Sony (Cisco).
In comparison, consumer marketing is targeted at all the major
demographic groups. Consumer marketing aims to capture sales
through major retailers thus removing the personal connection that is
inherent in the business-to-business relationship.

4. In the Cisco case, it is obvious that throughout the 90's Cisco was
extremely successful at working the business-to-business model and
focused on technology companies and specific corporations to sale
their internet based technologies too. This enabled them to become the
largest company in the world in the 90's with over $500 billion in worth,
however, they name brand through the consumer market was relatively
unknown (Cisco).
Cisco began making acquisitions in the 21st century of companies such
as Linksys which began their efforts toward consumer marketing, away
from business-to-business marketing. Cisco has continued to change
its messaging, focus advertising on customers, and worked hard to
make its brand image known throughout the world the same as its
competitors Microsoft and Apple (Cisco).

5. Q 2: Is Cisco's plan to reach out to consumers a viable one? Why or why not?
According to the case study, Cisco achieved a global ranking of 18 in
2008 with revenues of $39.5 billion dollars thus making its consumer
based plan a seemingly viable one (Cisco). In reviewing the market
conditions of the 90's which were wide open for internet technology and
comparing that to the 21st century which has now been saturated with
internet technology, Cisco is making a wise strategic move.
By transitioning to a consumer based marketing company, Cisco is
placing itself up against some very tough competition against Microsoft,
Apple, and Dell, however, their continued growth seems to demonstrate
they are holding their own with consumers (Cisco). Some of the key
transitional actions from business-to-business into consumer based
marketing that Cisco has made was to develop a message.

6. In 2003 the company began pushing the message of "This is the power
of the Network", a catchy phrase consumers could relate with. Also,
Cisco has consistently used television ads and other media outlets to
help push its brand name to consumers and help the company gain
market space successfully (Cisco).
So, for Cisco, changing its business model to consumer based and
making smart marketing decisions is helping the company refocus its
efforts on the future

7. Conclusion:
CSCO's revenue growth has slightly outpaced the industry average of
5.5%. Since the same quarter one year prior, revenues slightly increased
by 1.3%. This growth in revenue does not appear to have trickled down to
the company's bottom line, displayed by a decline in earnings per share.
The gross profit margin for CISCO SYSTEMS INC is rather high; currently it
is at 65.71%. It has increased from the same quarter the previous year.
Regardless of the strong results of the gross profit margin, the net profit
margin of 14.92% trails the industry average.
Despite currently having a low debt-to-equity ratio of 0.37, it is higher than
that of the industry average, inferring that management of debt levels may
need to be evaluated further. Even though the debt-to-equity ratio shows
mixed results, the company's quick ratio of 3.03 is very high and
demonstrates very strong liquidity.

8. Looking at where the stock is today compared to one year ago, we find
that it is not only higher, but it has also clearly outperformed the rise in
the S&P 500 over the same period, despite the company's weak
earnings results. Turning our attention to the future direction of the
stock, it goes without saying that even the best stocks can fall in an
overall down market. However, in any other environment, this stock still
has good upside potential despite the fact that it has already risen in
the past year.
You can view the full analysis from the report here: CSCO Ratings
Report

9. Recommendation:
"Cisco is in a very strong position Chairman and CEO John Chambers said. "Our
vision and strategy are working and we are executing very well in a tough
environment, as evidenced in our revenue growth, profitability, strong gross margins
and cash generation.
Chambers continued, "We have a tremendous opportunity to extend our lead in the
industry, and with Chuck Robbins as the CEO for Cisco's next chapter, we have
exactly the right leader to capture that opportunity."
"We rate CISCO SYSTEMS INC (CSCO) a BUY. This is based on the convergence
of positive investment measures, which should help this stock outperform the
majority of stocks that we rate. The company's strengths can be seen in multiple
areas, such as its revenue growth, solid stock price performance, notable return on
equity, attractive valuation levels and increase in net income. Although the company
may harbor some minor weaknesses, we feel they are unlikely to have a significant