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Topic: Business
Number of pages / Number of words: 2 / 393
Essay's paper body

1990 1995 2001

Objectives Product adoption Gain market share rapidly Deal with market share slow down

Customer Large corporate Also small and medium size business Small office

Home office

Home networking

Channel Direct (sales force) Transitioning to VARS Addition of retailers and Internet channels

Big and small vendors

Grade A

- Dynamic, adaptive, flexible

- 3 ? tier reflects value ? added

- Demand pull

- Training school, certification, support

- Compensation linked to end-user satisfaction

- Enhance channels profitability

Grade C

- Too many dealers

- Multiple channels undermine VAR position

- Expansion to lower products/markets/channels inconsistent with Cisco's value adding capabilities

- May open opportunities for competitors

Channel Conflict

? Large VAR partners serving important customers

? Telecom companies entering the fray as distributors

? Cisco's online retailers

? Able to use Cisco's direct website

Solution to channel management

? In general four strategies

? Set product/boundaries

? Set market / customer boundaries

? Promote price convergence

? Compensate for cost ?to ?serve difference

Telecom Problem ? two strategies applicable

? Construct penalties or incentives to level the playing field

? Rationalize distribution intensity

? What Cisco did

o Provided a better handle on channel partners

o Communicated good faith efforts

Channel conflict

? Large VAR partners serving important customers

? Telecom companies entering the gray as distributors

? Cisco's online Retailers

? Able to use Cisco's direct website

Problem:

How should Cisco distribute VoIP (voice over IP)?

Alternatives:

? Through new voice VARS

? Through existing DATA VARS

? Both

Criteria:

a) Risk

b) Cost effectiveness

c) Profit potential

Voice VARS

? Pros

? Readymade access

? Channel for future products

? Cons

? They need higher margins

? Conflicts with existing VARS

Data Vars

? Pros:

o They need additional sources of income which may create loyalty

o Lower data margins

? Cons:

o Lack connections to customers

o Do not understand service needs

Combination of Both

? Pros

o Can appoint the best dealer for the task and market at hand

? Cons

o Margin structure is unclear

o Major conflict on primary line with the other dealers

Epilogue

? Went with Voice vars in selected markets

? Data VARS who were either qualified or willing to invest in the learning

? Introduced a VIP (value incentive program) to award additional discounts and deal with the margin issue...


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1990 1995 2001

Objectives Product adoption Gain market share rapidly Deal with market share slow down

Customer Large corporate Also small and medium size business Small office

Home office

Home networking

Channel Direct (sales force) Transitioning to VARS Addition of retailers and Internet channels

Big and small vendors

Grade A

- Dynamic, adaptive, flexible

- 3 ? tier reflects value ? added

- Demand pull

- Training school, certification, support

- Compensation linked to end-user satisfaction

- Enhance channels profitability

Grade C

- Too many dealers

- Multiple channels undermine VAR position

- Expansion to lower products/markets/channels inconsistent with Cisco's value adding capabilities

- May open opportunities for competitors

Channel Conflict

? Large VAR partners serving important customers

? Telecom companies entering the fray as distributors

? Cisco's online retailers

? Able to use Cisco's direct website

Solution to channel management

? In general four strategies

? Set product/boundaries

? Set market / customer boundaries

? Promote price convergence

? Compensate for cost ?to ?serve difference

Telecom Problem ? two strategies applicable

? Construct penalties or incentives to level the playing field

? Rationalize distribution intensity

? What Cisco did

o Provided a better handle on channel partners

o Communicated good faith efforts

Channel conflict

? Large VAR partners serving important customers

? Telecom companies entering the gray as distributors

? Cisco's online Retailers

? Able to use Cisco's direct website

Problem:

How should Cisco distribute VoIP (voice over IP)?

Alternatives:

? Through new voice VARS

? Through existing DATA VARS

? Both

Criteria:

a) Risk

b) Cost effectiveness

c) Profit potential

Voice VARS

? Pros

? Readymade access

? Channel for future products

? Cons

? They need higher margins

? Conflicts with existing VARS

Data Vars

? Pros:

o They need additional sources of income which may create loyalty

o Lower data margins

? Cons:

o Lack connections to customers

o Do not understand service needs

Combination of Both

? Pros

o Can appoint the best dealer for the task and market at hand

? Cons

o Margin structure is unclear

o Major conflict on primary line with the other dealers

Epilogue

? Went with Voice vars in selected markets

? Data VARS who were either qualified or willing to invest in the learning

? Introduced a VIP (value incentive program) to award additional discounts and deal with the margin issue...


Essay fragment

General points of the essay

Business Intelligence Software at CISCO Cisco Case Analysis Cisco Case Digest Cisco Case Study Analysis (IT) Cisco Overview Cisco Systems Inc.: Implementing Erp Cisco and Juniper financial analysis Cisco IMPACT OF DIRECT/ONLINE SELLING ON TRADITIONAL CHANNELS Cisco 805 Password Recovery Cisco Case Cisco Systems and China Pros & Cons of IMC Channels Cisco Systems Pioneer E-Learning Cisco Systems

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