Cisco case Essay

1. What are the challenges faced by lake herring in introducing a major product like Viking? There are four main challenges encountered by CiscoTime-to-Market pressure Cisco has only one year to tack together Viking. Since the development of technology accelerates information exchange and boost customers demand, only companies that can set about the market transitions quickly can survive in the rapidly-changing society. Cost pressure Price competition in hi-tech market is rather fierce. E.g. bandwidth prices were constantly displace while customers expected continuous improvement in price-performance on their equipment. Immense technical complexity and concern on outsourcing productionFor example, Viking contained some 300,000 components, which is 30 multiplication more than in a small business router. So this requires a high ability for the contract manufacturer and a close cooperation between Cisco and the manufacturer. Uncertainty in NPIs effectiveness and efficiency This newl y introduced mechanism requires substantial global operation collaboration among far-flung teams, which contains considerable uncertainties.2. In selecting Foxconn and involving it from the start, what were the likely risks and values to Cisco? RisksLack of experience in handling technical complexity Foxconn has never made complex product like Viking before. Excessive addiction on vertical integration Overly depending on a single manufacturer will run a great risk of whatever financial and operational constraints it has. Meanwhile, Cisco may lose the opportunity to select the most appropriate suppliers.ValuesLow toll Selecting Foxconn can dramatically decrease the cost due to the cheaper labor force and materials from China and other Asian countries, as well as reduction in transition. Efficient supply chain A single site and its vertical integration create an agile structure, which promotes the efficiency greatly. Long-term incentive to develop the contract manufacturer If Foxc onn performed well in making a high-end router in a low-cost manufacturing environment, Cisco would have more flexibility forfurther products.3. What should Cisco do to ensure successful development and launch of the Viking router? There are three major ways for Cisco to ensure successEngaging supply chain partners early on to help simplify product design and manufacturing processes. Getting Foxconn closely involved early in development to lower risk. Utilizing technology to execute global, cross-functional teamwork, and to ensure smooth collaboration with Foxconn. Adopting sophisticated and intensive marketing strategies.