Cisco case Essay

1. What are the challenges faced by Cisco in introducing a major product like Viking? in that respect are foursome main challenges encountered by CiscoTime-to-Market pressure Cisco has only wiz year to launch Viking. Since the spring upment of technology accelerates information exchange and make headway customers demand, only companies that derriere catch the market transitions quickly can work in the rapidly-changing society. Cost pressure Price competition in hi-tech market is rather fierce. E.g. bandwidth prices were constantly dropping while customers expected nonstop improvement in price-performance on their equipment. Immense expert complexity and commercial enterprise on outsourcing productionFor example, Viking contained some 300,000 components, which is 30 times more than in a small business router. So this requires a high index for the contract manufacturer and a close cooperation between Cisco and the manufacturer. distrust in NPIs effectiveness and efficiency This newly introduced mechanism requires existent global operation coaction among far-flung teams, which contains considerable uncertainties.2. In selecting Foxconn and involving it from the start, what were the potency adventures and values to Cisco? RisksLack of experience in handling technical complexity Foxconn has never made complex product like Viking before. inordinate dependence 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 prospect to select the most appropriate suppliers.ValuesLow cost 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 manufactur er If Foxconn performed well in making a high-end router in a low-cost manufacturing environment, Cisco would have more flexibility for hike up products.3. What should Cisco do to ensure masteryful development and launch of the Viking router? There are three major ways for Cisco to ensure successEngaging supply chain partners early on to help change 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 innovative and intensive marketing strategies.