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Case Title:

Cisco in Emerging Markets (A): Market Entry Strategies in China and India

Publication Year : 2009

Authors: Shanul Jain, Muthukumar R

Industry: Engineering, Electrical and Electronics

Region:China and India

Case Code: MES0086

Teaching Note: Available

Structured Assignment: Available

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Abstract:

The first case in the series on Cisco Systems’ (Cisco’s) growth strategies in emerging markets, it details Cisco’s entry strategies and its subsequent growth in China and India. In 2008, the Asia-Pacific region emerged as an important destination for many foreign companies, especially for Cisco, a maker of networking equipment for the Internet and Telecom, due to the rapid growth of China and India.

The company, after initially focusing on the US and Western European markets, had started tapping the emerging markets for further growth avenues. China and India were identified as important markets by Cisco. As these countries were witnessing an increase in the number of Internet users, mobile phone subscribers and demand for networking equipment in different sectors, Cisco started investing heavily. However, Cisco had to change its strategy and adapt to the diverse and local conditions of these markets to succeed.

New rivals that could upstage Cisco by providing cheaper or more technologically advanced equipment posed as a threat to Cisco, which had initially enjoyed unhindered growth. Coupled with this, the company also faced the looming threat of a decline in demand caused by a slowdown in the global economy.

Pedagogical Objectives:

  • To examine Cisco’s growth through acquisitions and innovations
  • To compare and contrast Cisco’s market entry strategies in India and China
  • To debate on the sustainability of Cisco’s position in the networking equipment market and identify the challenges ahead.

Keywords : Cisco System Inc., India, Networking equipment, Expansion, Low-cost engineering resources, Internet market, Market Entry Strategies, Going Global, Emerging Markets, Deregulation of telecom industry, Small and Medium Businesses (SMB's)

Contents: 
Introduction
Cisco: An Overview
Evolution of the Internet and Cisco’s Growth
Internet Users
Cisco’s Globalisation Initiative
Opening Dates of Cisco Offices Outside US
BRIC Economies: An Overview
BRICs Share of GDP by 2050
Differences across Some Parameters between China and Indi

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