Flip Flop: Part 2

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1) “I don’t think there’s an analyst on the planet who thought that Flip was a good acquisition for Cisco.” Why do you think these analysts felt that way? I think that many analysts, who analyzed Cisco, saw a bigger picture than Cisco management itself. At the time of acquisition Cisco did not have a share on consumer electronic market and also did not have enough experience in area of consumer marketing. Cisco was serious to get a share of consumer market by acquiring, selling and developing Flips, one of the hottest products on the market at that time. They did not take into account that consumers want to have one device that can do it all rather than carry several electronic devices. Therefore Cisco missed to realize that new video recording and editing functions that smart phones manufacturers were developing and implementing at that time were as much, if no more convenient for consumers than Flip camera that was good for a short amount of time while smart phones were catching up. Cisco also did not realize that consumer “easier” changes his mind than business when it comes to new gadgets, so it might be not enough fans of Flips. 2) Evaluate Cisco’s consumer marketing efforts. Why might it be difficult for a company accustomed to selling to businesses to sell products to consumers? I think that Cisco put lots of efforts to market their product. They spent lots of money on commercializing, for example they hired famous celebrities to commercialize their product. The also paid for product placement on shows. Cisco was running heavy advertisement and marketing complain, but they were competing against companies who knew better what consumer wants – convenience to use, multi functionality of devices and low cost. I think, since Cisco was accustomed to sell their products to other businesses, to sell products to customers was difficult because mentality of people

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