With revenues of $US30 billion, Cisco Systems is the world's leading maker of network equipment that powers the Internet.
Cisco's offers a vast portfolio of sophisticated computer networking devices including routers and switches, which are key elements for voice, data and video communication. Routers forward computer traffic from one network to another. Switches direct computer traffic within local area networks.
Cisco sells its network products primarily to large enterprises and telecommunications service providers. The company also designs products for medium-sized and smaller businesses as well as consumers. Commercial businesses with less than 1,000 employees became Cisco's fastest-growing market segment in 2006.
Cisco’s business targets five trade theaters, namely:
- United States and Canada ... US$15.8 billion (55.4% of 2006 total net sales)
- European Markets ... $6.1 billion (21.4%)
- Asia Pacific ... $2.9 billion (10%)
- Emerging Markets ... $2.5 billion (8.7%)
- Japan ... $1.3 billion (4.5%)
Product revenue in the company’s Emerging Markets theater grew 37% from 2005, the highest annual growth percentage of all five business segments. U.S. and Canada net sales were up 18.7%, Asia Pacific net sales rose 14.8%, while European figures increased 6.8%. Japanese net sales were down 15.1% in 2006.
And The Winner Is ...
Last year, Cisco executives travelled around the world to meet with government leaders in India, China, Germany, Saudi Arabia and Russia. Cisco's strategy is to serve as a global technology partner, helping countries develop stronger economies through improved Internet access to education, healthcare and business opportunities.
For first quarter 2007, Cisco's net sales were up 24.9% from the prior year. Net income rose 27.5% while earnings per share jumped 30%.
Success didn't come without controversy. Cisco supplied the Chinese government with network equipment used to block Internet access to websites that the regime frowns on. Cisco explains that it sells the same equipment in China as it sells worldwide, and does not develop filtering technologies to block information access.
Instead, the company is focused on developing networking equipment to keep up with demand caused by the highly competitive and fast-paced war between telecommunications companies and cable providers.
Sources: Hoovers.com
