危 wēi  danger

Cisco’s position looks precarious – its core products,  mainly network gear,  have been commoditized by copycat products.  This and its inability to maintain growth rates (a classic problem for larger companies) have contributed to its market capitalization dropping from a high of $550bn in 2000 to $125bn today.

机 jī opportunity

Cisco’s Chairman & CEO,  John Chambers, recognises that the changing market environment could unlock opportunity too. His firm is presently branching out by exploring 30 ‘market adjacencies’ in which it might hold some competitive advantage.  These include cloud computing, routers in space and virtual healthcare.  Impressively, Cisco prototyped this approach in the past with its move into ‘advanced technologies’ – this group now accounts for 25% of Cisco’s revenues.

How about…

• Taking time out to explore ‘market adjacencies’
• Building a portfolio of new offers (the balance of which should be informed by the need to diversify)