Porter Five Forces Power
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The background:
The Juniper Networks case is about the brilliant success of a start-up against an established leader in the IP router market. The company was found in 1996 by a computer scientist with the idea of cashing in on the internet boom. Internet was spreading like wildfire in the mid-nineties. The founder Pradeep Sindhu, had the hunch that there would be strong demand for reliable, high-performance Internet Protocol (IP) routers to support the ever-growing electronic traffic.
The industry:
The IP router market was dominated by Cisco Systems with a monopoly-like market share (around 90%). The customers for routers could be classified into 3 broad categories Internet service providers (ISPs), phone companies and major corporations. The dramatic growth of internet placed a huge technical burden (that of performance needs) on the ISPs and big phone companies that ran the internet backbones. The next generation of routers developed by Cisco could not meet their needs. All these companies did not have many options when it came to high-performance routers.
Industry analysis by 5 Forces framework:
Juniper Networks and a couple of other start ups such as Foundry Networks and Avici Systems targeted the high performance IP router segment of the market...