HP Cisco alliance case Analyis1

Case Analysis – H P Cisco Alliance Executive Summary

Despite HP- CISCO top management intentions and senior and middle management commitment to renewed alliance stalemate has reached, due to lack of clearly defined ground rules, absence of detailed plan of action, cultural disconnect in decision making and non availability explicit financial integration plan. Problem statement:

Summary of the problem:

Despite being convinced and committed for the

alliance, HP,

the largest and CISCO the third largest Silicon Valley IT Company, their alliance organization could not reach to a formal agreement on how to move ahead with the progress of the alliance origination even after five years of association, despite their success as alliance partners with themselves and partners with other companies HP the largest and Cisco third largest Silicon Valley IT Company’s f formed an alliance in early 1997 for that focused on Technology collaboration, product integration, professional services, and customer customer support. It took five years for the two companies to realize realize that they can

further formalize formalize and expand expand their Alliance Alliance activities activities to gain synergistic synergistic advantages advantages for

both companies. The timing coincided with HP –Compaq merger and the alliance agreement agreement furthe furtherr delaye delayed d by 6 months months.. Final Finally ly it starte started d taking taking shape shape in Octob October er 2002. 2002. The top managements of both organizations are willing and committed to the alliance. To this effect that CEOs of both companies are expected to meet in Jan-2003. Many events have taken place in five years since the alliance inception HP and Cisco have excellent examples of alliances for them with other alliance partners

Widely respected technology companies in the world—HP and Cisco both appeared to be very desirable partners. Indeed, both management teams believed that forging a stronger, more formal alliance would produce benefits for both sides. Like all partnerships, however, the strategic alliance faced some challenges, and it was the job of the alliance teams to solve these issues to the best of their ability. As HP’s Russell and Heal prepared to meet with Cisco’s Steinh Steinhilb ilber er and Thomas Thomas,, they they made made some some notes notes about about actio actions ns they they believ believed ed the two companies could take to create an even more productive alliance in the future.