1. How does each of Porter’s five forces apply to Cisco?

Cisco Systems (cisco.com) richly deserves its self-designated title of “the worldwide leader in networking for the Internet.”
Virtually all of the data packets that swirl through the Internet pass through a Cisco-manufactured router on their way to their destination. However, Cisco doesn’t see itself as a computer hardware company. Instead, Cisco considers its main product to be networking solutions.
Through initiatives such as its Internet Business Solutions Group, Cisco provides businesses with the software, support, service, training, and, yes, hardware, they need to create an information infrastructure to become ebusinesses.
In 2003, Cisco sells its products in over 100 countries and employs 34,500 employees. In fiscal year 2002, Cisco Systems had almost $19 billion of revenue and ranked 95 on the Fortune 500.