Result: Cisco Competitive Advantage

1997 SG&A (% Revenue)

R&D Investments

$ Millions

Revenue Growth, 1995–97

Cisco

Bay

3 COM

Cisco

Bay

3 COM

Percent

Revenue

9.7%

10.8%

11.8%

27

© 1998, Cisco Systems, Inc.

1258_05F8_c13

• Reinvest profits to improve customer satisfaction:

  Higher-quality product and services
  
  Superior customer support
  Customer facing organizations e.g., IBSG

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