Wednesday, February 13, 2013

Make An Elephant Dance

(2/13/2013) When a company grows big, it is hard to make it continue to grow at the same rate. Sometimes, we see business expands by opening more shops (like Walmart or Bestbuy). This geographic expansion pays back really well, but it can only last for a short period of time (several years) till the company saturates the whole market. (Now Bestbuy is closing its shops facing fierce online competition) How did IBM turn to a software service company?

Network technology giant -- Cisco -- was facing the same situation after early 2000's bubble. It is good to see Cisco diversification strategy finally pays off. Cisco is still a network equipment giant, but it now is in data center and online video services too.


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