It is going to be long and painful but here are some options for Cisco to consider
1. Shuffle Management: Is it time to fire Chambers? For now they have hired a COO instead .
2. Lower Operating Expenses: HP and Juniper Networks, are biting into Cisco's market share and margins. Cisco could drop prices, but to keep profit margins healthy, it needs to cuts costs. This appears to be an obvious path and they have already started to offer buyouts to longtime employees and laying off non core staff.
3. Sell Non core Businesses: Cisco's foray into consumer technologies(cable TV boxes, Home networking Devices, Videoconferencing) has been a disaster. Cisco could sell or shut down other consumer businesses and get back to core business.
4. M&A: They could move into security(VMWare/Symantec), or storage(EMC). But an acquisition would be good only if it complements their core and comes as a great price. Considering the lagging stock I doubt that is a good strategy to pursue.
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