Cisco Switches in China: The Year of Assurance SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Organizational Development
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Cisco Switches in China: The Year of Assurance
This case describes the establishment of a new Cisco Systems R&D facility in Shanghai, China, and the great concern that arises when a collaborating R&D site in the United States is closed down. What will that closure do to relationships between the Shanghai and San Jose business units? Will they be blamed and accused of replacing the U.S. engineers? How will it affect other projects? The case also covers aspects of the site's establishment, such as securing an appropriate building, assembling a workforce, seeking appropriate projects, developing managers, building teams, evaluating performance, protecting intellectual property, and managing growth. Suitable for use in organizational behavior, human resource management, and strategy classes at the MBA and executive education levels, the material dramatizes the challenges of changing a U.S.-based company into a global competitor.
Swot Analysis of "Cisco Switches in China: The Year of Assurance" written by Lynn Isabella, Gerry Yemen includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Cisco Establishment facing as an external strategic factors. Some of the topics covered in Cisco Switches in China: The Year of Assurance case study are - Strategic Management Strategies, Motivating people, Negotiations, Operations management, Organizational structure, Talent management, Technology and Organizational Development.
Some of the macro environment factors that can be used to understand the Cisco Switches in China: The Year of Assurance casestudy better are - – increasing household debt because of falling income levels, cloud computing is disrupting traditional business models, there is increasing trade war between United States & China, increasing transportation and logistics costs, increasing government debt because of Covid-19 spendings, technology disruption, there is backlash against globalization,
challanges to central banks by blockchain based private currencies, increasing energy prices, etc
Introduction to SWOT Analysis of Cisco Switches in China: The Year of Assurance
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Cisco Switches in China: The Year of Assurance case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Cisco Establishment, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Cisco Establishment operates in.
According to Harvard Business Review, 75% of the managers use SWOT analysis for various purposes such as – evaluating current scenario, strategic planning, new venture feasibility, personal growth goals, new market entry, Go To market strategies, portfolio management and strategic trade-off assessment, organizational restructuring, etc.
SWOT Objectives / Importance of SWOT Analysis and SWOT Matrix
SWOT analysis of Cisco Switches in China: The Year of Assurance can be done for the following purposes –
1. Strategic planning using facts provided in Cisco Switches in China: The Year of Assurance case study
2. Improving business portfolio management of Cisco Establishment
3. Assessing feasibility of the new initiative in Organizational Development field.
4. Making a Organizational Development topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Cisco Establishment
Strengths Cisco Switches in China: The Year of Assurance | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Cisco Establishment in Cisco Switches in China: The Year of Assurance Harvard Business Review case study are -
Cross disciplinary teams
– Horizontal connected teams at the Cisco Establishment are driving operational speed, building greater agility, and keeping the organization nimble to compete with new competitors. It helps are organization to ideate new ideas, and execute them swiftly in the marketplace.
Operational resilience
– The operational resilience strategy in the Cisco Switches in China: The Year of Assurance Harvard Business Review case study comprises – understanding the underlying the factors in the industry, building diversified operations across different geographies so that disruption in one part of the world doesn’t impact the overall performance of the firm, and integrating the various business operations and processes through its digital transformation drive.
Highly skilled collaborators
– Cisco Establishment has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive segment. Secondly the value chain collaborators of the firm in Cisco Switches in China: The Year of Assurance HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Diverse revenue streams
– Cisco Establishment is present in almost all the verticals within the industry. This has provided firm in Cisco Switches in China: The Year of Assurance case study a diverse revenue stream that has helped it to survive disruptions such as global pandemic in Covid-19, financial disruption of 2008, and supply chain disruption of 2021.
Sustainable margins compare to other players in Organizational Development industry
– Cisco Switches in China: The Year of Assurance firm has clearly differentiated products in the market place. This has enabled Cisco Establishment to fetch slight price premium compare to the competitors in the Organizational Development industry. The sustainable margins have also helped Cisco Establishment to invest into research and development (R&D) and innovation.
Successful track record of launching new products
– Cisco Establishment has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Cisco Establishment has effective processes in place that helps in exploring new product needs, doing quick pilot testing, and then launching the products quickly using its extensive distribution network.
High switching costs
– The high switching costs that Cisco Establishment has built up over years in its products and services combo offer has resulted in high retention of customers, lower marketing costs, and greater ability of the firm to focus on its customers.
Training and development
– Cisco Establishment has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Cisco Switches in China: The Year of Assurance Harvard Business Review case study by analyzing – employees retention, in-house promotion, loyalty, new venture initiation, lack of conflict, and high level of both employees and customer engagement.
Organizational Resilience of Cisco Establishment
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Cisco Establishment does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Innovation driven organization
– Cisco Establishment is one of the most innovative firm in sector. Manager in Cisco Switches in China: The Year of Assurance Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Low bargaining power of suppliers
– Suppliers of Cisco Establishment in the sector have low bargaining power. Cisco Switches in China: The Year of Assurance has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Cisco Establishment to manage not only supply disruptions but also source products at highly competitive prices.
High brand equity
– Cisco Establishment has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Cisco Establishment to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Weaknesses Cisco Switches in China: The Year of Assurance | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Cisco Switches in China: The Year of Assurance are -
Products dominated business model
– Even though Cisco Establishment has some of the most successful products in the industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. firm in the HBR case study - Cisco Switches in China: The Year of Assurance should strive to include more intangible value offerings along with its core products and services.
High cash cycle compare to competitors
Cisco Establishment has a high cash cycle compare to other players in the industry. It needs to shorten the cash cycle by 12% to be more competitive in the marketplace, reduce inventory costs, and be more profitable.
Low market penetration in new markets
– Outside its home market of Cisco Establishment, firm in the HBR case study Cisco Switches in China: The Year of Assurance needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Capital Spending Reduction
– Even during the low interest decade, Cisco Establishment has not been able to do capital spending to the tune of the competition. This has resulted into fewer innovations and company facing stiff competition from both existing competitors and new entrants who are disrupting the industry using digital technology.
Lack of clear differentiation of Cisco Establishment products
– To increase the profitability and margins on the products, Cisco Establishment needs to provide more differentiated products than what it is currently offering in the marketplace.
High operating costs
– Compare to the competitors, firm in the HBR case study Cisco Switches in China: The Year of Assurance has high operating costs in the. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract Cisco Establishment 's lucrative customers.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Cisco Switches in China: The Year of Assurance, is just above the industry average. Cisco Establishment needs to redesign the compensation structure and incentives to increase the revenue per employees. Some of the steps that it can take are – hiring more specialists on project basis, etc.
Need for greater diversity
– Cisco Establishment has taken concrete steps on diversity, equity, and inclusion. But the efforts so far has resulted in limited success. It needs to expand the recruitment and selection process to hire more people from the minorities and underprivileged background.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Cisco Switches in China: The Year of Assurance HBR case study still accounts for major business revenue. This dependence on star products in has resulted into insufficient focus on developing new products, even though Cisco Establishment has relatively successful track record of launching new products.
Increasing silos among functional specialists
– The organizational structure of Cisco Establishment is dominated by functional specialists. It is not different from other players in the Organizational Development segment. Cisco Establishment needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Cisco Establishment to focus more on services rather than just following the product oriented approach.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Cisco Switches in China: The Year of Assurance, it seems that the employees of Cisco Establishment don’t have comprehensive understanding of the firm’s strategy. This is reflected in number of promotional campaigns over the last few years that had mixed messaging and competing priorities. Some of the strategic activities and services promoted in the promotional campaigns were not consistent with the organization’s strategy.
Opportunities Cisco Switches in China: The Year of Assurance | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities highlighted in the Harvard Business Review case study Cisco Switches in China: The Year of Assurance are -
Lowering marketing communication costs
– 5G expansion will open new opportunities for Cisco Establishment in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Organizational Development segment, and it will provide faster access to the consumers.
Using analytics as competitive advantage
– Cisco Establishment has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in the sector. This continuous investment in analytics has enabled, as illustrated in the Harvard case study Cisco Switches in China: The Year of Assurance - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Cisco Establishment to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Use of Bitcoin and other crypto currencies for transactions
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Cisco Establishment in the consumer business. Now Cisco Establishment can target international markets with far fewer capital restrictions requirements than the existing system.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Cisco Establishment to expand its talent hiring zone. According to McKinsey Global Institute, 20% of the high end workforce in fields such as finance, information technology, can continously work from remote local post Covid-19. This presents a really great opportunity for Cisco Establishment to hire the very best people irrespective of their geographical location.
Buying journey improvements
– Cisco Establishment can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Cisco Switches in China: The Year of Assurance suggest that firm can provide automated chats to help consumers solve their own problems, provide online suggestions to get maximum out of the products and services, and help consumers to build a community where they can interact with each other to develop new features and uses.
Learning at scale
– Online learning technologies has now opened space for Cisco Establishment to conduct training and development for its employees across the world. This will result in not only reducing the cost of training but also help employees in different part of the world to integrate with the headquarter work culture, ethos, and standards.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Cisco Establishment can build a diversified supply chain model across various countries in - South East Asia, India, and other parts of the world. This reconfiguration of global supply chain can help, as suggested in case study, Cisco Switches in China: The Year of Assurance, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Better consumer reach
– The expansion of the 5G network will help Cisco Establishment to increase its market reach. Cisco Establishment will be able to reach out to new customers. Secondly 5G will also provide technology framework to build new tools and products that can help more immersive consumer experience and faster consumer journey.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Organizational Development industry, but it has also influenced the consumer preferences. Cisco Establishment can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Manufacturing automation
– Cisco Establishment can use the latest technology developments to improve its manufacturing and designing process in Organizational Development segment. It can use CAD and 3D printing to build a quick prototype and pilot testing products. It can leverage automation using machine learning and artificial intelligence to do faster production at lowers costs, and it can leverage the growth in satellite and tracking technologies to improve inventory management, transportation, and shipping.
Developing new processes and practices
– Cisco Establishment can develop new processes and procedures in Organizational Development industry using technology such as automation using artificial intelligence, real time transportation and products tracking, 3D modeling for concept development and new products pilot testing etc.
Reconfiguring business model
– The expansion of digital payment system, the bringing down of international transactions costs using Bitcoin and other blockchain based currencies, etc can help Cisco Establishment to reconfigure its entire business model. For example it can used blockchain based technologies to reduce piracy of its products in the big markets such as China. Secondly it can use the popularity of e-commerce in various developing markets to build a Direct to Customer business model rather than the current Channel Heavy distribution network.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Cisco Establishment can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Threats Cisco Switches in China: The Year of Assurance External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Cisco Switches in China: The Year of Assurance are -
Technology acceleration in Forth Industrial Revolution
– Cisco Establishment has witnessed rapid integration of technology during Covid-19 in the Organizational Development industry. As one of the leading players in the industry, Cisco Establishment needs to keep up with the evolution of technology in the Organizational Development sector. According to Mckinsey study top managers believe that the adoption of technology in operations, communications is 20-25 times faster than what they planned in the beginning of 2019.
Stagnating economy with rate increase
– Cisco Establishment can face lack of demand in the market place because of Fed actions to reduce inflation. This can lead to sluggish growth in the economy, lower demands, lower investments, higher borrowing costs, and consolidation in the field.
Easy access to finance
– Easy access to finance in Organizational Development field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Cisco Establishment can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Cisco Switches in China: The Year of Assurance, Cisco Establishment may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Organizational Development .
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Cisco Establishment in the Organizational Development industry. The Organizational Development industry is already at various protected from local competition in China, with the rise of trade war the protection levels may go up. This presents a clear threat of current business model in Chinese market.
Regulatory challenges
– Cisco Establishment needs to prepare for regulatory challenges as consumer protection groups and other pressure groups are vigorously advocating for more regulations on big business - to reduce inequality, to create a level playing field, to product data privacy and consumer privacy, to reduce the influence of big money on democratic institutions, etc. This can lead to significant changes in the Organizational Development industry regulations.
New competition
– After the dotcom bust of 2001, financial crisis of 2008-09, the business formation in US economy had declined. But in 2020 alone, there are more than 1.5 million new business applications in United States. This can lead to greater competition for Cisco Establishment in the Organizational Development sector and impact the bottomline of the organization.
Shortening product life cycle
– it is one of the major threat that Cisco Establishment is facing in Organizational Development sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Capital market disruption
– During the Covid-19, Dow Jones has touched record high. The valuations of a number of companies are way beyond their existing business model potential. This can lead to capital market correction which can put a number of suppliers, collaborators, value chain partners in great financial difficulty. It will directly impact the business of Cisco Establishment.
Environmental challenges
– Cisco Establishment needs to have a robust strategy against the disruptions arising from climate change and energy requirements. EU has identified it as key priority area and spending 30% of its 880 billion Euros European post Covid-19 recovery funds on green technology. Cisco Establishment can take advantage of this fund but it will also bring new competitors in the Organizational Development industry.
Consumer confidence and its impact on Cisco Establishment demand
– There is a high probability of declining consumer confidence, given – high inflammation rate, rise of gig economy, lower job stability, increasing cost of living, higher interest rates, and aging demography. All the factors contribute to people saving higher rate of their income, resulting in lower consumer demand in the industry and other sectors.
Instability in the European markets
– European Union markets are facing three big challenges post Covid – expanded balance sheets, Brexit related business disruption, and aggressive Russia looking to distract the existing security mechanism. Cisco Establishment will face different problems in different parts of Europe. For example it will face inflationary pressures in UK, France, and Germany, balance sheet expansion and demand challenges in Southern European countries, and geopolitical instability in the Eastern Europe.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Cisco Establishment can face downward pressure on margins from increasing competition from international players. The international players have stable revenue in their home market and can use those resources to penetrate prominent markets illustrated in HBR case study Cisco Switches in China: The Year of Assurance .
Weighted SWOT Analysis of Cisco Switches in China: The Year of Assurance Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers in the HBR case study Cisco Switches in China: The Year of Assurance needs to zero down on the relative importance of each factor mentioned in the Strengths, Weakness, Opportunities, and Threats quadrants.
We can provide the relative importance to each factor by assigning relative weights. Weighted SWOT analysis process is a three stage process –
First stage for doing weighted SWOT analysis of the case study Cisco Switches in China: The Year of Assurance is to rank the strengths and weaknesses of the organization. This will help you to assess the most important strengths and weaknesses of the firm and which one of the strengths and weaknesses mentioned in the initial lists are marginal and can be left out.
Second stage for conducting weighted SWOT analysis of the Harvard case study Cisco Switches in China: The Year of Assurance is to give probabilities to the external strategic factors thus better understanding the opportunities and threats arising out of macro environment changes and developments.
Third stage of constructing weighted SWOT analysis of Cisco Switches in China: The Year of Assurance is to provide strategic recommendations includes – joining likelihood of external strategic factors such as opportunities and threats to the internal strategic factors – strengths and weaknesses. You should start with external factors as they will provide the direction of the overall industry. Secondly by joining probabilities with internal strategic factors can help the company not only strategic fit but also the most probably strategic trade-off that Cisco Establishment needs to make to build a sustainable competitive advantage.
