Cisco Systems: new millennium - new acquisition strategy?
Author: Brueller, Nir ; Capron, LaurenceINSEAD Area: StrategyPublisher: Fontainebleau : INSEAD, 2010.Language: EnglishDescription: 26 p.Type of document: INSEAD CaseNote: Latest version available via https://publishing.insead.eduAbstract: The case first describes the evolution of Cisco Systems of San Jose, California, from a narrowly-focused routing and switching equipment vendor, with a highly effective competitive strategy, into a diversified networking and IT giant. This growth was fuelled by multiple acquisitions, the rationale for which evolved in the light of the growth opportunities and challenges which Cisco encountered. The events described in the case took place in early 2007, while Cisco was considering the acquisition of IronPort, a security software company. A decision to purchase IronPort would symbolize a continual divergence from Ciscos old and famous acquisition strategy of acquiring young entrepreneurial firms to complement its internal development efforts and become a one-stopshop for its networking customers. This divergence had started a few years earlier, with the acquisition of large firms like Linksys and Scientific Atlanta, labeled by Ciscos management as platform deals.Pedagogical Objectives: This case can be taught in courses on corporate strategy, mergers and acquisitions, and general management. It contains ample data to discuss Ciscos strategy and its contingent approach towards acquisitions. It provides insights into implementation issues involving processes and routines underlying the various phases of the acquisition process from target selection to post-merger integration. In particular, this case can be taught with a specific focus on post-acquisition integration (providing an interesting setting to apply the Haslespagh and Jemisons integration matrix: absorption, symbiosis and preservation).Item type | Current location | Collection | Call number | Status | Date due | Barcode | Item holds |
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Latest version available via <a href=https://publishing.insead.edu>https://publishing.insead.edu</a>
The case first describes the evolution of Cisco Systems of San Jose, California, from a narrowly-focused routing and switching equipment vendor, with a highly effective competitive strategy, into a diversified networking and IT giant. This growth was fuelled by multiple acquisitions, the rationale for which evolved in the light of the growth opportunities and challenges which Cisco encountered. The events described in the case took place in early 2007, while Cisco was considering the acquisition of IronPort, a security software company. A decision to purchase IronPort would symbolize a continual divergence from Ciscos old and famous acquisition strategy of acquiring young entrepreneurial firms to complement its internal development efforts and become a one-stopshop for its networking customers. This divergence had started a few years earlier, with the acquisition of large firms like Linksys and Scientific Atlanta, labeled by Ciscos management as platform deals.
This case can be taught in courses on corporate strategy, mergers and acquisitions, and general management. It contains ample data to discuss Ciscos strategy and its contingent approach towards acquisitions. It provides insights into implementation issues involving processes and routines underlying the various phases of the acquisition process from target selection to post-merger integration. In particular, this case can be taught with a specific focus on post-acquisition integration (providing an interesting setting to apply the Haslespagh and Jemisons integration matrix: absorption, symbiosis and preservation).
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