Pure digital technology was acquired in the year 2008 for about worth an amount of 590 million USD. Cisco assumed that having hold over the camera business could get massive traffic, but certainly this was not looked upon as a constructive reason to make an acquisition of a parallel camera business unit.
Contemplation of collaboration by the technological giant
As a matter of fact Cisco being one of the predominating enterprise of the country did not needed to fetch a camera consumer based business that was not even overlapping with the business of networking forum as Cisco.
Cisco is indeed a colossal of technological advances; CEO John Chambers has been ascertained as the impulsive leader of the managerial domain. Investors and the customers look upon him for the insights which he draws upon the technological reforms. And the same has also helped Cisco to always emerge ahead of the major dips in terms of economy stress too. And has every time also been able to combat the stress with strength and valour of the organisation.
The acquisition was more of an overestimation. Perhaps, vicinage into the other common business partners indeed renders and looks for utmost sense of responsibility. Though many believes that entering into the concurrent parallel market could be presumed easy but sounds sensible only if the existing markets is slow for some reason which was certainly not in case of Cisco.
Many of the times critics have been complaining of the fact that why did Cisco actually needed to go out of the way and invest in a business platform other than the consumer home based electronic business. Not only to take into consideration the acquisition but Cisco in the meantime was also engaged in the spending away of nearly about 6 million USD in order to acquire Tandberg and Starnet networks.
Forfeited procurement by Cisco
Just after the two year of acquisition Cisco announced that it was now looking forward to discontinue the project and the business of the product flip camera. And then the scenario was very similar to that of which was at the time of acquisition. The stock market was again stumbled with this phenomenon.
As per a report of market research ever since the acquisition had taken place the flip camera was able to lose the market from that very point only. The business was found to decline as the sales had gone down by 19% and even the market share had plunged by about 17%. Of all those varied reason which were acclaimed for the downfall in the sales of the flip camera, marketing aspect which lacked strategic implementation and utmost up thrust of the competition were quoted the major underlying causes.
Initially when the decision was taken by Cisco to lead the acquisition of pure digital was aimed with the objective of manifesting and broadening the consumer base of the business. Although ever since a long time Cisco was involved in focusing so as to develop extensive solution of networking to the businessmen across the globe but this time inclining towards the neophyte was depicting anonymous story line. That went in to completely change the channel line was not understood as evident of. All that for the need of customer support seemed quite biased for a firm like Cisco.Cisco was drew to one side only because of the major changes it in the advancement which had occurred along the way and the most prominent among them being the wide gaining popularity of the smartphones.
The arduous discretion of decision
As far as the decision was taken by Cisco to give upon the acquisition which lasted for about 2 years for worth about 590 million USD, the termination also lead to devastate about 550 employees pertaining to this acquisition, because of a major corporate restructure that Cisco has devised. The decision laid its root aback to the fact that the acquisition was getting out sized with the passage of time and was not found to pay off well the technological giant. They evidently also found that there strategy towards the consumer was envisaging too look upon more of network concentric platform. Although initially they bought pure digital with the forecasted aim of extending its presence to the electronic business so as to drive the consumer influx. The enterprise was also looking upon pure as the advanced business networking portal which shall add to the home network domains of Cisco, but unfortunately much of the effect was not seen to be imposed on the new line of home routers of the consumers.
Changeover for the priorities
Now with the shedding off the of pure digital by Cisco is planning to move forth with the focus on the five major key components of the Cisco domain and is looking to priorities them in and out. These fiver components majorly include switching services, collaborative, videography, architectural work and core domain routing.
Cisco also looks forth to endorse the current consumer of the flip share by intrinsically focusing to take the flip share customer on the plan of networking with home business.
Cisco has been always credited with a bold step in order to acquire the pure digital in 2009, and even most important decision lied in spinning it off from the acquisition over the investment of about 590 million USD. These moves indicated the on and off of focus which kept on oscillating from the sight of Cisco for a longer period of time fame in terms of products and services which were to be kept into intellectual importance. The withdrawal of Cisco from this enabled acquisition is nothing but the very realisation of the fact that the corporate need to reorient themselves into the core networking business and should shed off the commodities that threat their market accessibility.