In the global telecommunications equipment market, Cisco is undoubtedly a successful company. Analyzing its past history and opening up have become the secret of its success. However, what is worrying today is that Cisco is undergoing a transformation and turning its openness into a closed one.
On 8 October, the Intelligence Committee of the US House of Representatives issued a report, suggesting that Chinese companies Huawei and ZTE threatened their national security, and advised users of their own governments and enterprises not to purchase their equipment. In this move, Cisco has undoubtedly become the biggest beneficiary.
In the global telecommunications equipment market, Huawei and ZTE now pose great pressure on Cisco, especially the development of Huawei, which makes Cisco feel a lot of pressure. In 2011, Huawei established three business segments to expand its business from traditional telecommunications equipment to corporate networks and terminals, posing potential future threats to Cisco's dominance in the router market. Some analysts pointed out that in this incident, there is quite a taste to protect Cisco and maintain its monopoly on the US market.
Cisco was founded in late 1984 and is headquartered in San Jose, California. It mainly produces related equipment and software for network connection. The founders, Len Bosack and Sandy Lerner, are teachers at Stanford University. They wanted to email each other in their office buildings. Because the technical protocol was not universal and could not be successful, they invented a technology to deal with different protocols. Multi-protocol router was born, which became the origin of Cisco.
Looking back at Cisco's success path, openness was the secret to its success. In the 1990s, with an open mind, Cisco formulated a strategy for rapid growth through mergers and acquisitions. In the eight years from 1993 to 2000, over 70 companies were acquired. Cisco gained rapid expansion and the company's stock price increased rapidly. In March 2000, Cisco's stock market value surpassed Microsoft and became the world's largest. the company.
"Network management and Internet technology provide tools for management information systems, allowing managers to swing their pendulum back and forth, looking for vendors with complete solutions, rather than choosing the best way out. It is now possible to connect, analyze, and manage the entire global network The manager of the management information system began to ask network companies to provide them with a broader solution with global service capabilities. "Bill Brady once commented on Cisco's move.
In 1999 Cisco Systems announced that it would jointly develop the largest IP-based network with communications company giant Kunst. A year later, Sprint Telecom announced a decision to let Cisco build their integrated audio-visual data network. In September 2000, Cisco further reached its VoIP goal and established a joint venture with the Internet phone company Net2Phone. Around 1999, Cisco's market value reached more than $ 550 billion, and the highest peak was close to $ 590 billion.
With the advancement of time, Cisco, which has become the dominant player in the global telecommunications equipment market, began to gradually evolve. Its crackdown on Huawei is a typical example. In 2003, Cisco sued Huawei for infringement of intellectual property rights, and its real intention was obvious, and it was intended to limit Huawei's expansion in the international market. Cisco has felt huge threats from Huawei. These threats come from Huawei's high-end routers that have approached Cisco's products in many ways, and have begun to compete with Cisco in the market.
In July 2012, Cisco announced the termination of the strategic cooperation agreement it signed with ZTE Corporation in 2005. The agreement mainly includes the purchase of routers and other products from the company.
After becoming the market leader, Cisco in order to prevent being called a monopoly. In the internal training for new employees, there is a constant emphasis on avoiding such as "kill this competitor", "control this market", "occupies this market", "don't forget the 'email, laptop and hard drive' meeting Seen by lawyers and other words, to avoid the investigation of the fact that the regulatory agency has reached a monopoly.
It is worth noting that while Cisco blocked its peers in the market, it also tried to use political means to restrain its opponents from expanding Cisco. Experts pointed out that behind the US government's accusation of Chinese companies Huawei and ZTE threatening their national security, there is a Cisco promoter.
Compared with the experience of Huawei and ZTE in the US market, Cisco's development in the Chinese market has been smooth.
In August 1994, Cisco established an office in Beijing. Engaged in sales, customer support and services, research and development, business process operations and IT service outsourcing, Cisco financing and manufacturing. As of 2011, Cisco's revenue in China accounted for 3% -4% of its global revenue. In 2011, Cisco's total global revenue was US $ 40 billion, of which US $ 1.6 billion came from China. The profit contribution of the Chinese market accounts for 30% of Cisco's overall profit, followed by 45% of its US domestic business. Today, Cisco's communication equipment is widely used in China's government public utilities, medical care, manufacturing, financial services, manufacturing, transportation , Petrochemicals, electricity, education, hotels and home communications markets, and even many military purchases have used Cisco equipment.
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