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Cisco TelePresence: Segmentation, Market and Values


The internet and the facilities it offers are the main consequences that influence the globalization of the world in general. Globalization, in its turn, leaves nothing for the business sphere as to get into the way with the internet and use it for the business running. The internet uses a great many different facilities that may be used in business and other spheres of human life. Taking the Cisco Systems Telepresence as the example of the internet facilities that make the business running faster and more convenient, the following problems are going to be discussed, segmentation, target market, developing a value proposition, and communicating the value proposition.

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The product is directed to a wide business audience. Charles Stucki, the vice president, and general manager of Cisco Telepresence Systems business unit once said that “’we are seeing demand from every region of the world, across all vertical industries, because businesses are looking for a competitive advantage in a global business environment” (in “Cisco sells 100th presence system” 10). This phrase explains the main purpose of the market segmentation and its direction.

Seeing the necessity in the communication within the distance, the Cisco Company managed to invent a product that can be profitable in different kinds of business, big and small, already developed and still developing. The main peculiarity of the product is that it is rather new and unique. The monopolization of the market with this product may lead to great profit the company can have. For now, the company has occupied the vast majority of the market and it is not going to let the other companies be involved in the same business.

Target market

The main purpose of the Cisco Telepresence System is to “improve collaboration and productivity with in-person interactions and advanced capabilities” (Cisco TelePresence). For now, the main target market for the product is the companies with global supply chain management. These companies require the technology that would allow the members of the company to communicate as if being in one room. This is increasingly important as along with the globalization of the business sphere, communication remains extremely important.

Furthermore, being the technology of the future, the Cisco TelePresence System may open other opportunities for people, who are not involved in the business sphere. Internet, cell phones, and other technologies made people got used to the fact that communication does not require physical presence. Thus, the use of the Cisco TelePresence System may face another target market than it was predicted when the product was brought into development.

Developing a value proposition

The Cisco TelePresence System offers a new type of service. The previously existing online conference systems do not have the same properties as the Cisco TelePresence System does. Being one of the first standards-based videoconferencing systems, the Cisco TelePresence offers new facilities, such as not just audio and visual contact, but also creating the effect of sitting in the same room. The company does not think only about the quality of video and sound, which are on the high level, the company tries to develop the product which created the vision, the illusion of being in the same company of all the members of the conference, even if they are on different continents.

The company should make stress the fact that the psychological mood is highly important while communicating. When the members of the conference think that they are in the same room, the stream of the discussion may be different. The time and distance frames are removed and even the physical presence is felt. This opinion should be developed while pointing to the production values.

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Communicating the value proposition

The Cisco TelePresence System is rather expensive, still, big companies that run international businesses will willingly consider the offer of Cisco to buy the virtual room. Living in the world of globalization and innovative technologies, people have understood that communication is extremely important. Personal contact is of great value as well. The Cisco TelePresence System offers the opportunity to feel the physical presence of the partners even being remote.

This should be one of the main arguments for communicating the value of the new product that is offered by Cisco. The other advantage of Cisco TelePresence System use is the combination of different functions in one product. Cisco TelePresence System comprises “e-mail, social networking, videoconferencing, instant messaging, and document and video sharing” (Karpinski 10) which is extremely important while the conference or other business negotiations are carried on.


In conclusion, the problems of segmentation, target market, developing a value proposition, and communicating the value proposition in the Cisco TelePresence System were discussed. The product is oriented on big international companies with supply chain management distributed all over the world. Being the only company that offers such kind of product, the monopolization of the market is possible with the further increase of the profit. It should be added that the caring of the negotiation in one room is psychologically positive, even if the room is just the vision.

Works Cited

“Cisco sells 100th presence system.” AV Magazine (2008): 65. Business Source Complete. Print.

Cisco TelePresence.. Official site. 2010. Web.

Karpinski, Rich. “Cisco does software.” Connected Planet (2009): 10. Print.

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