Was John Chambers Of Cisco Systems Inc. (NASDAQ:CSCO) Successful In Damage Control?
Cisco Systems, Inc. (NASDAQ:CSCO) Chief Executive John Chambers hosted annual share holder meeting yesterday at the company head quarters, where he tried to undo some of the damage caused to investor sentiments when last week the $115 billion market capped technology major offered a weak revenue guidance for its 4Q operations.
Chambers Pep Talk
In his pep talk to his share holders, John Chambers who is considered by many as one of Tech Industry’s top leader has been quoted as saying, “Change is afoot at a fast pace; whether it’s in technology, economic or new business models. Changes which used to take place in three years, take place in one quarter now. There is a realization that amongst our customers at a global level, the pace of change for their business models and their own survival is changing. We get knocked down sometimes, but we get up in a way that no other company does. We get the transitions right at Cisco eventually.” He signed off by reassuring investors that the company will “emerge stronger than ever” from a sales slump by expanding its services into the fast paced developing markets.
Readers should note that Cisco Systems, Inc. (NASDAQ:CSCO) has in the recent past has faced slow down in its sales on a quarter on quarter basic. The slowdown in demand felt by the network infrastructure provider is spread across most of its traditionally strong markets of Europe and Asia. It has also faced increasing competition from new breed technology firms which offer best of breed solutions custom tailored to meet the fast paced changing business needs of its customers.
Turn Around Efforts
In order to turn the company around, Cisco Systems, Inc. (NASDAQ:CSCO) has brought in a host of cost cutting measures including reduction in work force across all its divisions and hived off non focus business segments.