Abstract

In 2005, Cisco seems to have successfully overcome the crisis it faced in early 2001 when it had to make major write offs, following the tech crash. Despite this recovery, many analysts wonder whether the company is pursuing unrealistic goals. Cisco wants to grow at 12-15% while maintaining gross margins of 65%. Cisco's plan calls for brisk growth in its core markets, selling corporate routers and switches, and then marketing those products with a broad range of related technologies. To reach the 15% annual growth target, Cisco will have to increase revenues from $22 billion in 2004 to $38.5 billion in 2008. Will Cisco be able to achieve such an ambitious goal?

Learning Objectives

The case is structured to achieve the following Learning Objectives:

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Keywords

Cisco, Tech Crash in 2001, Cisco's crisis, Cisco's Plans, brisk growth in Cisco's core markets, Corporate routers and Switches