Strategic Analysis of Cisco Learning Network

Cisco as one of the global leaders in the provision of networking equipment such as routers and switches has also provided training to professionals as a way of offering skills to a growing customer base. The organization, therefore, founded Cisco Learning Network to provide the necessary contents to the learners who were pursuing different certifications as well as offering a crucial platform for interaction by the individuals. The certifications were meant to recognize the individuals for attaining various networking skills. The general manager for Learning at Cisco, Jeanne Beliveau-Dunn, is contemplating the best approach to utilize so as to accomplish the division’s strategic goal. The learning network has grown since its launch in 2008 and by 2013 had over 2 million registered online users with the organization having issued over 700,000 certifications to professionals trained on aspects such as design and implementation of networks. The professionals also receive training on the operation of computer networks through the application of the equipment provided by Cisco.


The strategic goal of the organization is thus to capitalize on the success that has been associated with the online platform to increase the number of certifications to 3 million by 2018. The objective is aimed at supporting Cisco’s commitment to supporting and advancing the concept of the internet of everything. Cisco is determined to lead in the migration towards internet of everything (IoE). IoE is aimed at increasing the number of devices that are connected together and are in communication with one another. The challenge of accomplishing IoE is a slowed development due to the lack of standard protocols that can be used by the information technology companies. Similarly, the security of systems is a major concern despite the hosts of benefits that can be obtained from the concept of IoE. There is a need for Cisco to develop new certifications that can make all the stakeholders and industry players open to common standards.


The main issue in the case study is Cisco Learning Network’s need to evolve to take advantage of the opportunities that are present in the market. The need to evolve is also identified as the primary strategy that the organization can utilize to accomplish its goal of growing the number of certifications offered to 3 million by 2018. The division’s head is considering two options that can be adopted to pursue the objective of strategic evolution to take advantage of the opportunities in the market environment. Furthermore, another goal of the division is to develop a process in which there is increased collaborations with students, experts, and other content providers to offer instant voice through technologies such as video conferencing. The analysis of this case data, therefore, seeks to generate alternatives that can be used by Cisco Learning Network to accomplish its objective as well as providing criteria for decision making.


Analysis of Case Data


Cisco was formed in 1984 out of the need to connect computers to allow communication between individuals at different locations (Bunnell and Brate 2). The technology invented was essential for allowing different networks to communicate with each other by allowing translation of the communicated message through suitable equipment called router. The Company through various stages of leadership has grown over the years to become one of the global leaders in the provision of computer networking equipment and services. The advancement of the internet saw Cisco diversifying its investments by adopting various technologies to offer various products into the market. Such diversifications saw the company expanding into consumer electronics while offering routers for wireless networking in 2000.


A major strategy utilized by the Company to foster its growth is an acquisition. The strategy outlines that if the firm cannot manufacture its in-house products then it should identify and acquire a company that is leading in that particular product category (Bunnell and Brate 4). Cisco spent most of the 1990s acquiring over 73 companies around the world with and bringing about 7000 employees. In 2001 almost a third of the Cisco’s products were manufactured by the acquired entities and partnerships. Further acquisition strategies involved Cisco expanding its corporate products by providing servers that stored data and perform functions that are essential for improving the network performance. On the same note, the organization also provided corporate security systems that are necessary for protecting networks from misuse and unauthorized access.


Apart from the historical acquisitions, Cisco has also invested in a number of startups through venture capital. By 2013, the company had invested over $2billion and hence implemented a strategy of not only acquiring big organizations but also smaller firms that had shown future growth. Cisco’s rapid growth can further be observed in the fact that by 2013 Cisco had $180bn of network products installed around the world attaining over 62% of the router’s market share. The year also saw the Company being valued at $140bn with a reported annual income of $46b. Approximately 75% of the business’ revenues came from technical services showing the firm’s commitment to diversification and the outcomes of the strategies towards growth and competition in the network provision market (Bunnell and Brate 12). The technical service provision is especially important there is an increasing demand for services such as trouble shooting and maintenance, and provision of support through centers located around the globe. The professional services are necessary for designing and building networks for businesses around the world.


Cisco has historically relied on its Go-to-Market Model on which it has relied on its partners to deliver its products and services to the market. The partners’ role advanced from just installation of the equipment at the end of LAN (Local Area Network) with the growth in portfolio leading to the partners becoming network integrators. The company’s growth strategy can be seen as having based on the acquisition and partnerships. A strategic partnership is responsible for the firm’s growth as Cisco capitalize on the strengths of the partners to allow the manufacturing of networking equipment. Despite the advantages of the partnership model, it can be observed that the model is associated with various disadvantages. Diversification, especially for the advancement of the internet, is also necessary for the growth of company due to an increased market demand for technical services as enterprises require maintenance and troubleshooting.


To support its growth strategy, Cisco has also ensured that there is enough number of skilled engineers and professionals who could capitalize on the innovations. The advancements in software, hardware and the innovations in other technical services could only be possible if there were appropriate personnel to implement the various growth policies and strategies. The company, therefore, introduced the various levels of certifications to suit the different levels of skills and specialization on networking. The training is also vital to offer the knowledge necessary to help the professionals to fit into the evolving jobs that are also more specific and are tailored towards meeting the various needs of the industry. Another way through which the company sought to increase the number of certifications offered to professionals is through scaling partnership with relevant businesses to fill the needed talent gap. The scaling on partners to offer training is also essential in offering the necessary to enable the company to offer the training to over 192 nations in the local language. The company developed Cisco Learning Network to provide a platform that is necessary to offer educational resources and assets.


Despite the growth and success enjoyed by Cisco, the company has faced intense competition from various IT companies such as Juniper, Hewlett and Packard, Alcatel Lucent, and Huawei Technologies. However, there are market opportunities and challenges. One opportunity that is observed is the sense that there are increasing numbers of devices that are connected. The firm has, therefore, estimated that the number of connected devices will increase by up to 50 billion in 2020. The internet of everything (IoT) is also expected to increase networking in which Cisco can capitalize to provide products that connect different devices. Since there will be more devices connected to the internet, the Company, therefore, seeks to increase the number of equipment that they can sell to their potential clients. However, Cisco expects to encounter the challenge of lack of conformity of devices especially due to that the fact that networking devices provided by different information technology companies may be compatible with one another. The business is taking advantage of the technological changes to offer unique products that meet the modern needs of enterprises and individuals. Such technological changes have seen the firm reporting $6 billion in 2012 to $12 billion in software revenues in 2016.


Generating Alternatives


Technological changes are providing unique opportunities for enterprises around the world to not only grow their revenues but can also be applied to accomplish strategic goals of the organization. Similarly, the organization can utilize the advances in technology create options that are essential for resolving the main issue in the case that is the necessity to evolve to capitalize on the opportunities that are present in the market such as the advancement in technology. The first alternative that is proposed is the creation of knowledge in which new certifications on networking are instituted.


The option should hence involve Cisco constantly tailoring its curriculum and certifications to meet the demands of the technological advancement. Similarly, the company should aim at creating knowledge to suit the group of people who are not conventionally related to computer networking in which the example of an HTML developer is seen as one of the professionals who could benefit from such knowledge. Due to the evolving nature of networking, providing new certifications to different information technology professionals may be essential due to the fact that users may be required to possess certain skills such as maintenance and troubleshooting the network related problems. Individuals may also find the new knowledge vital especially due to the associated cost issues. Since they possess the necessary skills they may not seek professionals and technical services relating to their networks and systems. Provision of the knowledge of networks operate is also vital to the users since they get the basic understanding of the operation of the systems and hence the improved efficiency of the processes.


The second alternative proposed includes the company partnering with the various communities to continue offering the certifications. The option, therefore, entails the role of the partnered community assisting to develop the required educational content. Such partnerships are vital since most of the community members possess a vast experience in the automation of systems and networks. The partners can thus act by providing the invaluable content to the learners. The necessity and viability of such partnerships are observed in the sense that the learners are exposed to real problems in the industry. The second option could, therefore, provide the enable the company to provide certifications that offer the specific skills necessary for career advancement of the various individuals in their classes. Furthermore, the alternative fits into one of Cisco’s one of the historical strategies in which it has continuously partnered with organizations and enterprises in the cases that the firm could not produce the intended products profitably. In developing a virtual lab in which the network engineers can interact with the software engineers can thus improve the organization’s ability to provide specific content relating to the overlap between the disciplines.


Selecting Decision Criteria


Multiple criteria decision making is essential towards ensuring that the organization selects the best alternative from a pool of options that are available to the decision-makers (Ehrgott, Figueira, and Greco 29). The main criteria proposed for selecting a decision include ease of implementation, preferences, information inputs, decision outcomes, and resource availability. The ease of implementation examines how fast the organization can implement the selected decision with minimum efforts and time. Preferences entail the value function that is likely to be chosen by the company based on the past models as well as the need for change. Information inputs criteria refer to the required data that can be utilized by the organization as the basis for its decision-making process. Resource availability and accessibility are essential in the execution of the selected criteria. Similarly, the resources may determine the implementation since the described costs of a project related to the ability of the organization's to execute the plan to its completion.


Evaluating the Alternatives


Developing new certifications in the first option is important in the sense that it allows for the incorporation of the aspects of the advanced technologies. For instance, the newly instituted curriculum and body of knowledge can address the new elements of communication technology such as cloud-based services and connections, data analytics, and artificial intelligence. Apart from instituting new certification for networking technologies, the creation of new knowledge is relevant as it plays a vital role in the evolution of the materials and resources used in the learning process as well as providing the required personal supports to all the individuals being trained. One-on-one supports to the learners are essential parts of the evolved learning environment in which the students are given adequate guidance necessary for not only passing the examinations but also for equipping the individuals with the vital skills to excel in the careers.


Using preference as decision criteria the second option that proposes the building or expanding of the community meet the Cisco’s dominant strategic growth in that has seen it historically using partners to produce the products that it could not produce profitably. Expanding communities as an alternative can also be aligned with the expected decision outcomes as the organization will be able to offer the required certifications through the formation of industrial partnerships. The desired outcomes of the decision will thus be met in the sense that the option will enable the learners to access the intended content. Availability of the resources is an important aspect in evaluating whether Cisco should develop its own contents or partner with the relevant industry players to obtain the learning resources to the learners. The consideration of the resources does not only relate to the cost-saving aspects of each alternative but also the value that can be created in pursuing the particular alternative.


Selecting the Best Alternative


The best option selective for this case study is the second alternative in which the company expands its community to work with the relevant capacity to provide the necessary contents to certify the professionals under the Cisco Learning Network. The alternative has been chosen based on the discussed decision criteria.


Developing an Implementation Plan


The implementation plan seeks to execute the chosen strategy to allow Cisco Learning Network to accomplish its objective increased number of certifications to 3 million by 2018. The second objective is to enable the company’s division to provide the relevant content to the learners registered on the platform so as to equip the professionals with the necessary skills suitable for the technological advancements. The need to increase the organization’s certification is also aimed at ensuring that the business is better placed to capitalize on the technological evolution of the industry. The first step entails the organization actively identifying the potential partners that can be part of the expanded community within the first six months of the approval of the report. The prospective partners are to be identified from the existing community members as well as contacting the various enterprises within the information technology.


The process of identifying the community members to provide the appropriate content should be carried simultaneously with the need assessment of the talent gap in each of the targeted industry. For instance, the organization should evaluate the exact skills that are necessary for networking of equipment in a financial and banking organization. Specific educational content should, therefore, address the need for security and sensitivity of the information in such cases. Partnering with a financial organization should, therefore, provide learning resources that provide the practical opportunity to apply networking skills in such environments. The second step should involve Cisco collaborating with the identified partner to draw a strategic roadmap that allows all the parties to mutually benefit from the relationship. Furthermore, the organizations should agree on the specific roles that should be performed by respective parties. The last step in the implementation of the plan should entail the company creating awareness and promotional campaigns to attract new users to the expanded platform. The Cisco Learning Network should thus clearly guide the learners on the benefits of being certified by the organization for different skill levels.



Works Cited


Bunnell, David, and Adam Brate. Making the Cisco connection: the story behind the real Internet superpower. John Wiley " Sons, 2000.


Ehrgott, Matthias, José Figueira, and Salvatore Greco. Trends in multiple criteria decision analysis. Springer, 2010.

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