Tomahawk, WI 12/04/2013 (BasicsMedia) – Anyone who has followed Cisco Systems, Inc. (NASDAQ:CSCO) will have noted one vital piece of information; the company’s seemingly eternal and endless battle with Huawei Technologies. This battle has run on for more than a decade now, where the two seek to outdo the other one in terms of being the most dominant communications equipment making company. They already enjoy the distinct reputation of being the two biggest in this industry. However, they have never hidden their ambition of being the sole dominant force. So, which company has won this battle?

Cisco and Huawei Have Fought Intense Battles

These two companies have not limited where they conduct their battles. They have fought over the blogs, while lobbying the government, and in courts as well as emerging markets. A close examination of the way in which the battle has been carried out in the last one year, shows that there is some sort of stalemate between the two companies. This has created a new problem, in that the futures of the two firms are now being questioned. Cisco Systems, Inc. (NASDAQ:CSCO) has tried to gain a foothold on Huawei’s market, just as the latter has made similar attempts on its own turf.  Is there a winner?

Currently, there is no clear winner between the two companies. However, there are people whose opinion is that Cisco Systems, Inc. (NASDAQ:CSCO) should not have been in much of a hurry to go into the Chinese market.  Cisco has been unable to completely penetrate the market that Huawei dominates for various reasons, some of which have everything to do with politics. Cisco has not done everything it should have to increase its share of this market. This is a simple recognition of the fact that Cisco has faced some insurmountable hurdles in its quest for dominance of the Chinese market.

Should China Continue Being Cisco’s Biggest Emerging Market?

For such a long time, China was the biggest emerging for Cisco Systems, Inc. (NASDAQ:CSCO), and the company went after it hard and aggressively. At some point, many were asking if Cisco was not taking too much of a risk in trying to gain a proper footing in China, when there are many local companies to contend with in the country. This was responsible for some of the battles that have involved both Cisco and Huawei in the past. China has remained Cisco’s biggest emerging market, even though the finances fail to provide adequate proof; since it only accounts for 5% of the company’s revenue.

Where Huawei performs better than its rival Cisco Systems, Inc. (NASDAQ:CSCO), is in the fact that it boasts of much better figures from the latter’s stronghold, the U.S. The U.S is responsible for close to 70% of Huawei’s total international business. This figure compares favorably to Cisco’s revenue of 5% that it earns from China. Therefore, the American company needs to find ways of ensuring that if it continues operating in China, it improves its financial position, by raising more revenue than it has done thus far. If it fails to achieve this, China will wear Cisco down financially.

Cisco Systems, Inc. (NASDAQ:CSCO) is not doing too badly in the U.S and in other markets around the world. It only needs to find ways of improving its performance in China, to bolster its financials in the other markets.

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