Cisco Systems SWOT & PESTLE Analysis

Strength

1. Robust inorganic growth strategy: The company follows an aggressive growth strategy that helped Cisco to establish itself as a technology leader. It focuses on acquiring new and well developed technologies in addition to concentrating on self-developed technologies .The company experienced strong growth in the last few years due in large part to its aggressive strategy for building and acquiring technology to keep up with its customers' fast changing requirements.

2. Leading market positions across major product segments: Cisco has leading market position in all the markets that it serves. The company is a leader in providing routing, switching, and associated services, including comprehensive security and mobility solutions. According to industry estimates, Cisco is the leader in enterprise router market in Q1 2017 with 43.9% market share as of Q1-2017. Cisco has also maintained its dominance in the Ethernet Switch market with 55.1% share. Further, in emerging economies such as India is a fast growing market, Cisco commands a market share of more than 75% in the router segment.

3. Significant presence across high-growth product segments: Cisco has a strong presence networking and wireless business segment. According to industry estimates, data center, wireless and service provider video end markets are expected to drive the IT industry. Due to the cost effectiveness of cloud computing, the demand for data centers is expected to grow substantially. Similarly, the rising popularity of handheld devices and the sale of high-speed wireless devices are expected to show phenomenal growth further increasing the demand for the company's wireless products. Similar growth is seen in the service provider video market. These segments are expected to generate high growth in the future which will benefit Cisco.

Weakness

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Opportunity

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Threat

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Political

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Economic

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Social

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Technological

1. Internet and big data increasing concerns around network complexity and security: Cisco is the global leader in networking and emerging networking technologies. Billions of devices, systems and platforms are getting connected the internet leading to wide distribution of massive amounts of data. This is increasing the challenge around data complexity and security. Cisco can capitalize on these trends with opportunities in multicloud world, big data, emphasis on employee and customer experience, security all of which has a common denominator which is networking. Cisco has built a strong wired and wireless product portfolio with products and solutions such as and is strongly positioned to continue as an industry leader in the segment.

2. Strategic acquisitions to shape the product portfolio with changing technology trends: With the advent of cloud computing, cloud based infrastructure services and solutions related to data protection, integration and orchestration and security compliance is set to become a huge market exceeding $60 billion by 2021, according to technology research firm IDC. Cisco in order to optimize its portfolio has followed he inorganic route and made several acquisitions in the cloud segment since 2016 to strengthen its capabilities. In December 2017, Cisco acquired Cmpute.io’s, whose software solution analyzes cloud-deployed workloads and consumption patterns and will be a strategic value add to Cisco’s cloud solutions portfolio. BroadSoft acquisition will strengthen Cisco’s cloud calling and contact center solutions capabilities whereas the acquisition of Observable Networks in July 2017 will provide the company with a head start in cloud-native network forensics security area. Other notable acquisitions in the cloud segment since 2016 by Cisco include CloudLock, a specialist in cloud access security broker (CASB) technology; Synata, which provides advanced search capabilities for on-premise and cloud-based applications; CliQr providing application-defined cloud orchestration platform; and AppDynamics with a cloud application and business monitoring platform.

Legal

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Environmental

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