Strategic ManagementCase Focus Not Magic Reference 301 210 1
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Strategic Management
Case: "Focus, Not Magic"
Reference: 301-210-1
Introduction:
Juniper has enjoyed considerable success in the router market by focusing on customers with high performance requirements, such as ISPs and giant telephone companies (backbone providers). It has steadily increased market share compared with Cisco, which is the dominant player in this market.
Segmentation of the market:
There are two clear segments in the market. A high-end segment which is based on the key success factors of high performance, reliable, configurable, interoperable and scalable products targeted at ISPs and backbone providers. This segment is projected to grow by 200% annually to $6 billion in 2001 (12). Juniper is a key player in this segment. It has been successful by catering to customers that Cisco has traditionally underserved. A new potential player in this segment is Avici, who have recently developed a faster terabit router.
The key success factor for the second (low-end) segment is lower performance requirements and is targeted at corporate customers. This segment has annual growth of 30% to $18 billion in 2001 (12)...