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Technology Stocks : Cisco Systems, Inc. (CSCO)

CSCO 76.04

-1.3%

Jan 2 9:30 AM EST

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To: Kenneth E. Phillipps who wrote (54596)	8/21/2001 12:57:15 PM
From: RetiredNow	Read Replies (1) of 77400

Thx for the post. Historically, Cisco has shied away from using its balance sheet muscle to woo customers. This stance is classic marketing 101. You only resort to pricing wars after you've availed yourself of every other opportunity to increase share. In other words, you fight the battle on services and value adds instead of price. However, when products move off the cutting edge and start to get commoditized, usually preceded by a bunch of small companies entering the same market, then my opinion is that it's at this point that the company should start a price war. This helps you defend and advance your market share. If Cisco is now doing this in Layer 3 as well as in high-end core routing (against Juniper), then they are following classic marketing theory on conducting business for maximizing their market share.

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