CISCO SYSTEMS INC.

Cisco systems Inc. “Teleconferencing software industry”

Cisco systems Inc. “Teleconferencing software industry”

Introduction

The organization was founded in 1984 by a group of computer scientists from Stanford University in the middle of the technological revolution that was happening in the San FranThe organization area. The founders created the first router to solve a problem where a husband and wife, who had accounts on different servers in separate buildings of Stanford University, were unable to send electronic mail to each other. The solution to this problem became the first computer router. This event and the help of a few venture capitalists gave birth to the organization. Today the organization is the leading provider of networking hardware and software; they provide the physical equipment that is fundamental in networks and the internet.

The organization's stock, symbol CSCO on the NASDAQ, is trading at around $11.50 currently and has a $21.92 52 week high. The organization's stock has been hard hit in the internet bust of the late 90's and the slumping economy over the last few years. Things are looking up for the organization shareholders as the stock markets start to even out and money starts to flow back into the major US markets. The organization is part of the NSADAQ 100, a major index fund. Uncertain investors looking to reenter the market are sure to invest in proven companies and major index funds, helping boost the the organization stock price.

The companies' official SIC code is 3576 (Network Equipment). According to the Business and Resource Center It can be classified under several other areas including 3577 (Computer Peripheral Equipment), 7372 (Prepackaged Software), 3661 (Telephone and Telegraph Apparatus), and 7371 (Computer Programming Services).

Porter's Five Forces

An important aspect of the micro-environmental analysis is the industry in which the organization as teleconferencing software industry is considering operating. Michael Porter devised a useful framework for evaluating the attractiveness of an industry or market. This framework, known as Porter's Five Forces, identifies five factors that influence the profitability of an individual market.

Degree of Rivalry - the strength of competition

With more than 5,000 Apple Macintosh users at the organization but no spare IT resources for supporting them, Mac users began helping each other. A wiki portal was established to support Mac users with solutions, resources, and tips. It has more than 750 contributors and 10,000 unique visits per month, and it replaces 40,000 email messages.

Supplier Power

The organization suppliers provide the raw materials, such as labor or suppliers, for producers. If the company suppliers are powerful, then they can exert more control over the producers that they supply. The organization argues that suppliers connected to its site have a competitive edge over other firms, potentially leading to increased sales. The organization believes that participating firms are better able to manage manufacturing schedules, improve cash management and respond faster to changes in demand for the organization products.

Threat of Substitute

This occurs when there is competition from a product from a different industry. For example, if another telecommunication company creates a product similar ...