Supply and Demand and Cisco Systems
1. Discuss the nature of the market structure and the demand for Cisco’s products.
The nature of the market structure and demand of Cisco Systems is its business market which
contains fewer bvut larger companies. For Cisco Systems, this implies that even though they have
fewer clients than other companies, they still have a good and profitable relationship with their
clients. For the customers of Cisco Systems, this implies that they will receive better and faster
service and products because they don’t have to compete for the attention and service of Cisco
Systems.
The business market is derived from final consumer demand which means Cisco Systems must
know what the market demands from their business customers. For Cisco Systems, this implies
that Cisco must depend on the final consumer market, in order for their customers to buy their
supplies. This also means that Cisco Systems must also promote the products of their partner
businesses in order to get the final customers attention and loyalty to their partners in order for
them to get gain. For the customers of Cisco Systems, this implies that they would have to depend
on their customers choices if they are willing to buy their product or not. The demand of the
final customers would be the basis of the customers of Cisco Systems if they would ask for more
supply from Cisco Systems or not.
The business market’s demand is more inelastic, which means that it is not affected as much in
the short run by price changes. For Cisco Systems, this implies that they would not be affected
that much and their production of the supplies and demand for the supplies would remain the
same even though there are short run price changes.
2. Given the industries in which Cisco competes, what are the implications for the major types of
buying situations?
Straight rebuys—because Cisco deals in high-tech, there may be few truly straight rebuys. This
The nature of the market structure and demand of Cisco Systems is its business market which
contains fewer bvut larger companies. For Cisco Systems, this implies that even though they have
fewer clients than other companies, they still have a good and profitable relationship with their
clients. For the customers of Cisco Systems, this implies that they will receive better and faster
service and products because they don’t have to compete for the attention and service of Cisco
Systems.
The business market is derived from final consumer demand which means Cisco Systems must
know what the market demands from their business customers. For Cisco Systems, this implies
that Cisco must depend on the final consumer market, in order for their customers to buy their
supplies. This also means that Cisco Systems must also promote the products of their partner
businesses in order to get the final customers attention and loyalty to their partners in order for
them to get gain. For the customers of Cisco Systems, this implies that they would have to depend
on their customers choices if they are willing to buy their product or not. The demand of the
final customers would be the basis of the customers of Cisco Systems if they would ask for more
supply from Cisco Systems or not.
The business market’s demand is more inelastic, which means that it is not affected as much in
the short run by price changes. For Cisco Systems, this implies that they would not be affected
that much and their production of the supplies and demand for the supplies would remain the
same even though there are short run price changes.
2. Given the industries in which Cisco competes, what are the implications for the major types of
buying situations?
Straight rebuys—because Cisco deals in high-tech, there may be few truly straight rebuys. This